As more teenagers become curious about finance. A growing number are starting to explore investing but is starting early really a good idea? 

Grade 12 student Efe O., who developed an interest in investing at an early age, remembers always having to check the stock market during class in his first year of high school. “I was trading on the Turkish stock market,” Efe says, “but the hours overlapped with school”. Efe adds: “It wasn’t ideal.” 

Now age 17, Efe has built a diverse investment portfolio that includes stocks, gold, silver, and even agricultural commodities. He’s one of a small but growing group of teenagers who are getting an early start in investing.

But is this something more students should consider? And what should they know before starting their investment journey?

What is Investing?

Investing means putting money into assets, such as stocks, ETFs (exchange-traded funds), or commodities, hoping that their value will increase over time. 

Unlike savings, which keeps the value of the money generally stable but grows slowly depending on the interest earned, investing usually involves more risks but gives higher potential returns.

One key reason many experts recommend starting young is the benefit of compound interest. This is when the money you earn from investments is reinvested, allowing it to grow (compound) even more over time. 

Simply put, the earlier you start, the more time your money has to grow. 

In most countries, teens under 18 can’t legally open investment accounts by themselves, but custodial accounts allow parents or guardians to open one on their behalf. According to Investopedia, in Romania, Turkey, and the U.S., minors typically need a parent to set up an account, which can later be transferred to them when they reach legal age (usually 19 or 21 depending on the country) 

AISB Teen Investors Share their Experience

Efe O.: Learning by Doing

With a family background in entrepreneurship, Efe says he was introduced to financial ideas at a young age. He began by putting part of his allowance into different types of investments, from gold and silver to shares in the American and Turkish stock markets. One of his more unusual investments is in cocoa powder— something he was able to through his father’s agricultural commodities business. For his other investments, Efe mainly uses Revolut and eToro, two apps that allow users to trade stocks, commodities, and even crypto directly from their phone.

His most successful investment? “Nvidia,” he says. “It’s been the top performer in my portfolio, especially with all the interest in AI.” But Efe also acknowledges the importance of making mistakes.

“I got into investing to learn. I’ve had losses, but my gains have been greater overall.”

Grade 12 student Efe O.

Vanessa C.: Virtual Investment

Grade 9 student Vanessa C. became interested in investing after participating in a virtual stock market competition last year. Supported by her parents, especially her dad who also invests, she began making virtual trades in companies like Nvidia and Tesla.

Her proudest moment in the simulation was shorting Gamestop during its infamous stock surge, in which she earned $2,000 dollars of virtual money. While Vanessa finds this topic interesting, and notes that some of her classmates invest, she says “most [students] don’t really think about it.” 

Radu F.: Family Activity

For grade 9 student Radu F., investing is something he shares with his dad. “We usually look at the market together,” he says. “He’s taught me how to analyze what’s happening and how to make predictions.” Their biggest success so far was a crypto investment that earned them a good amount of money in just one week. But for Radu, the goal isn’t quick profits.


“I’m more focused on learning and understanding the process. I think it’s important to be [patient and careful].” 

Radu F.

According to financial literacy experts at Investopedia and the Corporate Finance Institute, starting to invest early can have real advantages.

Benefits and Risks of Early Investing

Benefits: 

Builds financial knowledge: Students learn how markets work and how to make informed decisions. 

Gives money time to grow: Starting early allows investment to grow over a longer period.

Encourages planning: Investing helps develop long term thinking and goal setting.

Risks:

Inexperience: Without enough research, students may follow trends or invest emotionally, which statistically leads to lower returns.

Market uncertainty: There’s always a chance of losing money especially with higher risk investments. 

How to Start

According to trusted sources like Investopedia, beginners should take these simple steps:

1. Build savings first: Before investing, make sure you have a solid emergency fund. Experts recommend keeping part of your savings (at least 3-6 months of monthly earnings) in a savings account or money market account so you can access it quickly if needed. 

2. Learn the basics: From online, books, and courses, you can learn the key concepts like risk, diversification and compound interest. 

3. Start small: Begin with a small portion of allowance or savings. This keeps the risks low while building experience. 

4. Use beginner friendly tools: Exchange-Traded-Funds (ETFs) or index funds are usually recommended for new investors because they are more diversified and cheaper than individual stocks. For example, buying Vanguard’s Total World Stock ETF (VT) is basically buying a slice of all global stocks. Individual stocks may go up or down, but over the longer term the ETF’s basket of funds usually rises. For example, VT has increased in value by 255% since 2008.

5. Avoid hype: All three students emphasized the importance of avoiding emotional decisions or following social media trends without doing proper research. “Investing is mostly about thinking long term,” Efe says. “You have to learn to ignore the noise and stay focused.” This also allows you to benefit from that compound interest.

Investment Risk Ladder. (Graphic made by Ela O., using Canva)

Research Says….

According to the trusted financial education websites like Investopedia and the Corporate Finance Institute, students who want to invest responsibly should:

  • Diversify their investments to reduce risk.
  • Avoid frequent trading and high management fees.
  • Focus on long term goals rather than quick profits.
  • Only invest in what they understand. 

Math and design teacher Michael Lok agrees that “understanding investing and budgeting should be a part of every student’s education.” Lok adds: “It’s the kind of knowledge that is relevant for life.” 

Starting to invest early can be a valuable learning experience for teenagers. It helps develop financial responsibility, critical thinking, and long term planning skills. At the same time, it’s important to do research and understand the risks, and get support from adults when needed.