Investing 101 for teens

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As high school students, many of us are focused on grades, college applications, and extracurricular activities. However, there is another important aspect of our future that we don’t often think about: investing. While it might seem daunting, investing as a teenager can be a game-changer for building long-term financial stability. 

Why start investing now? 

The key to successful investing is time. The earlier you start, the more you benefit from something called compound interest –basically, earning money on both your initial investment and the interest it generates over time. Even small amounts invested early can grow significantly by the time you are ready for major life expenses, college, buying a home, or retirement. It is never too early to think ahead!

Starting now can also help you develop good financial habits. Learning to budget, save, and make informed decisions about where to put your money are life skills that will serve you well into adulthood. 

How should you get started? 

The world of investing offers many options, from traditional stocks  to newer trends like cryptocurrency . But don’t worry if you are not ready to dive into those big markets yet. There are simpler ways to start:

• Open a custodial brokerage account : This allows you to invest with the guidance of a parent or guardian.
• Try a micro-investing app: Some platforms allow you to invest small amounts of money, even spare change, in stock portfolios. 
• Start with mutual funds or ETFs : These are collections of stocks or bonds that allow you to invest in a broad market without needing to pick individual stocks 

This summer, I had the opportunity to intern at UBS , one of the world’s largest financial institutions, where I got to learn about wealth management. At UBS I got to work with Brenda O’Connor Juanas, senior vice president, and Carrollton mom. It was truly an eye-opening experience that taught me so much about the importance of strategic investing and wealth management. I worked alongside professionals who handle high-net-worth clients, helping them grow and protect their wealth. 

One of the key lessons I learned was the value of thinking about my future in terms of financial literacy. Many of UBS’s clients focus on building not just for themselves, but for future generations. This experience emphasized that investing is not just about short-term gains, it is about creating a financial legacy, and it all starts now even at just 16 years old.

While it may seem overwhelming, or like a serious and boring topic, getting started with investing is a lot easier and exciting than it seems. And the earlier you begin, the more time your money has to grow. Your financial future starts now–why not make the most of it?