The Young Investors Club

When the giant tech company Nvidia was about to release a report of its quarterly profits in the spring of 2023, Luke Gough and other students in the investment club at his high school waited with anticipation. As a learning exercise, they had simulated buying Nvidia stock, and they wanted to see the company thrive, despite predictions from Wall Street experts who had expected lower profits.

The students got the results they wanted. Nvidia “hit it out of the park,” recalls Luke, now an 18-year-old senior at Lyons Township High School in Illinois. But his excitement stemmed from more than just a simulated stock purchase. He had also invested real money in the company—whatever he’d made from birthday gifts and summer jobs. “Instead of throwing it into a checking account or my wallet,” Luke says, he puts a chunk of his savings into an investment account that his father manages. “I just tell him that I want it to go into this stock or that stock.”

Luke is one of a growing number of teenagers who are investing in the stock market. The trend, experts say, stems in part from the rise of high school financial literacy programs, including investment clubs, where students learn about the intricacies of the stock market (see “How Stocks Work,” below). It’s also a reaction to the economic realities young people face today. Many must deal with rising student loan debt after college and an increasingly competitive job market, and some teens have decided that taking charge of their finances early is a good idea. Many parents also have started to teach their teen children the importance of saving money and investing some of it at a high rate of return.

In the spring of 2023, Luke Gough and other students in the investment club at his high school waited with anticipation. The giant tech company Nvidia was about to release a report of its quarterly profits. The students had simulated buying Nvidia stock. They wanted to see the company succeed, despite predictions from Wall Street experts who had expected lower profits.

The students got the results they wanted. Nvidia “hit it out of the park,” recalls Luke, now an 18-year-old senior at Lyons Township High School in Illinois. He was excited by more than just a simulated stock purchase. He had also invested real money he earned from birthday gifts and summer jobs. “Instead of throwing it into a checking account or my wallet,” Luke says, he puts a chunk of his savings into an investment account that his father manages. “I just tell him that I want it to go into this stock or that stock.”

Luke is one of a growing number of teenagers who are investing in the stock market. The trend, experts say, stems in part from the rise of high school financial literacy programs, including investment clubs, where students learn about the intricacies of the stock market (see “How Stocks Work,” below). It’s also a reaction to the economic realities young people face today. Many must deal with rising student loan debt after college and an increasingly competitive job market. Some teens have decided that taking charge of their finances early is a good idea. Many parents also have started to teach their teen children the importance of saving money and investing some of it at a high rate of return.

At Fidelity, the financial services company, the number of teen investment accounts in the U.S. has more than tripled over the past couple of years to around 300,000, amounting to more than $1 billion invested, according to Ken Hevert, a senior vice president.

“Teens want to have financial independence, and they want to be able to make their own decisions,” he says.

Financial literacy experts have long pushed for young people to learn how to manage money and start saving earlier. States have begun to act. Thirty states now require that high schools offer courses in personal finance, up from seven in 2019. The students themselves are eager to learn. Forty-two percent of teenagers say they’re worried they won’t have enough money to cover their future needs and goals, according to a 2025 JA Teens & Personal Finance Survey. When they receive money, from gifts or from a job, only 36 percent of teens save any of it for their future, the survey revealed—and usually in savings accounts, where their money grows slowly because of low interest rates. About 13 percent of teens now invest their money in stocks, according to the survey, and that figure is growing rapidly.

Investing may be more important than ever for young people, experts say. The costs of a college education and housing in the U.S. are rising at a faster rate than average salaries are for many professions.

At Fidelity, the financial services company, the number of teen investment accounts in the U.S. has more than tripled over the past couple of years. There are around 300,000 accounts, amounting to more than $1 billion invested, according to Ken Hevert, a senior vice president.

“Teens want to have financial independence, and they want to be able to make their own decisions,” he says.

Financial literacy experts have long pushed for young people to learn how to manage money and start saving earlier. States have begun to act. Thirty states now require that high schools offer courses in personal finance, up from seven in 2019. The students themselves are eager to learn. Forty-two percent of teenagers say they’re worried they won’t have enough money to cover their future needs and goals, according to a 2025 JA Teens & Personal Finance Survey. When they receive money, from gifts or from a job, only 36 percent of teens save any of it for their future, the survey revealed. And they usually use savings accounts, where their money grows slowly because of low interest rates.

About 13 percent of teens now invest their money in stocks, according to the survey. That figure is growing rapidly. Experts say investing may be more important than ever for young people. The costs of a college education and housing in the U.S. are rising at a faster rate than average salaries are for many professions.

“I was blown away,” says Neil, now a 17-year-old senior.

With his father’s encouragement, Neil opened his first investment account with $182.50 in 2023. He first put his money into what’s known as a stock index fund, which is run by professional investors who place the money in a large number of publicly traded companies. After growing more comfortable with investing, Neil bought his first individual stock, in the tech titan Microsoft.

Many adults today say they wish they’d had a chance to learn more about finances when they were young. That’s why some parents are making investing a dinner table discussion. In Western Springs, Illinois, Madelyn Hart’s parents began explaining the stock market to her when she was 6. That’s when they opened a custodial investment account for her—one that’s managed by the parent—and let her pick some of the investments herself. Ever since, she’s contributed to the account about once a year from gifts and summer jobs. Her stock portfolio now includes Apple, Disney, and Microsoft.

Madelyn, now 17 and a senior at Lyons Township High, says her investments may give her peace of mind when she retires decades from now. In the meantime, they can provide security for the immediate future.

“I know that when I want to buy my first house or if I have student loan debt,” she says, “these are things I can prioritize.”

“I was blown away,” says Neil, now a 17-year-old senior. “I had no clue, because $1,000 a year isn’t that much. That’s something any one of us could do with a part-time job.”

With his father’s encouragement, Neil opened his first investment account with $182.50 in 2023. He first put his money into what’s known as a stock index fund. It’s run by professional investors who place the money in a large number of publicly traded companies. Once he grew comfortable with investing, Neil bought his first individual stock, Microsoft.

Many adults today say they wish they’d had a chance to learn more about finances when they were young. Now some parents are making investing a dinner table discussion. In Western Springs, Illinois, Madelyn Hart’s parents began explaining the stock market to her when she was 6. They opened a custodial investment account for her. That’s an account that’s managed by the parent. They let Madelyn pick some of the investments herself. Ever since, she’s contributed to the account about once a year from gifts and summer jobs. Her stock portfolio now includes Apple, Disney, and Microsoft.

Madelyn, now 17 and a senior at Lyons Township High, says her investments may give her peace of mind when she retires decades from now. In the meantime, they can provide security for the immediate future.

“I know that when I want to buy my first house or if I have student loan debt,” she says, “these are things I can prioritize.”

The lessons many teens are learning from school clubs and their parents is to choose relatively safe investments, like stock index funds. If some companies in the index underperform, the success of the others should in many cases make up for it.

But any investment carries risk. A company or an entire industry could fall on hard times, leading many investors to sell their shares, which causes the value of stocks to go down. And broader changes in the U.S. or world economy, such as a financial recession or a war, can lead to lengthy periods when many or most investments lose value. The last time that occurred in the U.S. was in 2022, when the S&P 500, one of the major stock indexes, declined by 27.5 percent between January and October. The current war in Iran is likely to test the confidence of investors if it drags on.

The lessons many teens are learning from school clubs and their parents is to choose relatively safe investments, like stock index funds. These funds spread money across many companies, so if some companies do poorly, others can help balance it out.

But any investment carries risk. A company or even an entire industry can struggle, which may cause investors to sell their stocks. That causes prices to go down. 

And broader changes in the U.S. or world economy, such as a financial recession or a war, can lead to lengthy periods when many or most investments lose value. The last time that occurred in the U.S. was in 2022, when the S&P 500, one of the major stock indexes, declined by 27.5 percent between January and October. The current war in Iran is likely to make investors nervous if it continues.

Financial experts worry that some teens are drawn to making riskier investments, usually through apps that make investing easy and don’t charge a commission fee. One particularly risky strategy is day trading—buying and selling stocks within the same day to profit from short-term fluctuations in their prices. The success rate is extremely low.

“What they are doing is a sort of betting,” says Lusardi, the Stanford economist, “picking individual stocks and cryptos, things like that, hoping to get rich quick.”

That’s not what Arjun Ramakrishnan advises fellow students to do. The 18-year-old senior at Lake Oswego High School in Oregon prefers a methodical approach, researching and writing up reports on the companies he might invest in.

“It’s about building my skill,” he says. “It’s all about practice. And it’s fun.”

Alisa Chang started an investment club at Valencia High School, in Placentia, California, in 2024. For students heading into adult life, she says, starting to invest can’t happen soon enough.

“If they find out about it when they’re in their 20s, it might be a little too late,” says Alisa, now an 18-year-old senior. “So it’s super-important to start introducing these lessons to teenagers.”

Experts are also concerned that some teens are trying risky types of investing, often through easy-to-use apps that don’t charge fees. One of the riskiest methods is day trading—buying and selling stocks within the same day to make quick profits. Very few people are successful with this.

“What they are doing is a sort of betting,” says Lusardi, the Stanford economist, “picking individual stocks and cryptos, things like that, hoping to get rich quick.”

That’s not what Arjun Ramakrishnan advises fellow students to do. The 18-year-old senior at Lake Oswego High School in Oregon prefers a methodical approach. He researches and writes up reports on the companies he might invest in.

“It’s about building my skill,” he says. “It’s all about practice. And it’s fun.”

Alisa Chang started an investment club at Valencia High School, in Placentia, California, in 2024. She says teens should start investing as early as possible.

“If they find out about it when they’re in their 20s, it might be a little too late,” says Alisa, now an 18-year-old senior. “So it’s super-important to start introducing these lessons to teenagers.”