Why you should invest in stocks?



Photo displaying the highs and lows of the stock market.

Investing in stocks can be a great way for students to learn how to manage their money and start building wealth. It is never too early to start learning how the stock market works and how to invest wisely. Investing can be a great way for teens to make money, save for the future, and gain experience in financial management.

The stock market can be an intimidating place for teens, as it involves a lot of complex financial terminology and strategies. According to Cassidy Smith, Senior at Cathedral, “I honestly have never had the chance to learn about stocks and understand how the economy fluctuates to affect it. I am scared of losing my money, so that’s why I’ve never personally invested my money.” However, with the help of a financial advisor or online resources, teens can become more familiar with stock market basics. Teens should understand the different types of stocks, how to read financial statements, and how to assess a company’s performance.

What’s the best way a student can get started you may ask? According to Mr. Rickling, the Business and Finance teacher at Cathedral, when asked what students should know before starting, “Diversification through ETF’s, being Exchange-traded funds, is the biggest thing I would let them know versus investing in a single stock so that they don’t have all their eggs in one basket.” So sum this up, you risk a lot more by putting all of your money in one stock, rather than diversifying your portfolio.

Investing in stocks is also a great way for teens to save for the future. By investing money in stocks, teens can potentially earn higher returns than they would with a traditional savings account. This can be particularly beneficial for teens who are looking to save for college, since the higher returns can provide more money for tuition and other expenses.

Finally, investing in stocks can help teens gain experience in financial management. By researching companies, analyzing their financials, and making sound investment decisions, teens can learn a great deal about how the stock market works