Teens take on investing
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Illustration: Maura Losch/Axios
Editor's note: This story was written by University of Texas student Catalina Lopez for Axios Austin.
Teens today have more access to financial information from TikTok, YouTube and beyond, but not all of it is reliable.
Why it matters: April is Financial Literacy Month — an effort to encourage conversations around money — and local advisors say that flood of information is pushing more Austin families to start money conversations earlier.
What they're saying: "There are a lot of voices out there," Terry Flesher, a senior financial consultant with Charles Schwab in Austin, tells Axios.
- "Too many of them are promoting 'get rich quick' approaches," he adds.
Zoom in: Schwab officials say they're seeing increased interest in Austin families seeking ways to provide teenagers a stronger financial foundation with investing.
- Workshops and one-on-one guidance are available through the local branch, though the broader shift is happening at home, Flesher says.
State of play: Charles Schwab recently launched the Schwab Teen Investor account, a joint brokerage account for teens ages 13 to 17.
- The account is designed to give teens supervised experience with investing, allowing them to trade stocks, ETFs and other basic investments while parents monitor activity.
- Higher-risk options such as margin trading, cryptocurrencies and futures are not available.
- Teens who complete the online course within 45 days of opening the account receive $50 in fractional shares.
By the numbers: A recent Schwab study shows 70% of teens are very or extremely interested in investing.
- Nearly half of those teens say they want to grow their money while others are considering college expenses or simply trying to understand the financial system.
- "What makes the account different is not just access, but involvement," Flesher said. "They're actually making investment decisions alongside a parent who can guide them."
Pro tips for parents: Ask your teen about what they're interested in, whether it's a brand they love or a technology they're excited about, Flesher says.
- "You don't need to be a financial expert," he says. "Start with a conversation."
- From there, you can connect that interest to the idea of investing and then make it real.
- Opening an investment account together and putting even a small amount of money to work is one of the most effective ways to learn.
The bottom line: "Investing teaches teens critical life skills," Flesher says.
- "They learn to research and evaluate information before making decisions. They also learn about risk and understanding that not every decision will work out perfectly and that's OK."