Age 14

Time to get real about stocks.

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By 14, kids have hopefully learned the lesson that making money takes discipline and hard work. Hahahaha. Actually, they’ve learned that making money requires a TikTok channel and an influencer contract. NO MATTER where your 14-year-old is at in their journey, this lesson will ensure that even if your kid thinks making money is easy, they can still keep their “easy money” working hard. 

Start Here.

Here’s the math: 

$20 a week saved over 35 years, will net you $36,400. 

$20 a week invested over 35 years can build a portfolio of about $290K. 

Investing over time is considered one of the most reliable and consistent ways to build wealth. So, let’s get real about it. 

Keep Going.

An Arizona State University study examined the 26,000 stocks traded on U.S. exchanges in the last 100 years. 

Here are the results: 

  • 1,000 stocks account for all profits 
  • 86 stocks account for half of all gains 
  • The average stock has traded for seven years and lost money. 

Get This.

Excuuuse me?! Do not panic. Those numbers need some serious context!

Wealthie accounts focus on the long term, because in the history of the markets, over a 20-year period, stock markets have always gone up. 

History also shows that diversification is key. To boost the odds of holding at least one (or part of one) of those 1,000 winning stocks in a portfolio, it’s helpful to have exposure to a lot of them. 

Exchange-Traded Funds — ETFs — are one way to get broad market exposure and diversification. These are investments that trade on an exchange, like regular stocks. They’re funds made up of little slices of multiple stocks that move with the market. 

If you’d like to learn more about ETFs, great news: your 14-year-old owns one! You can check on your ETF by logging into your investment account.