Why Yet-to-Invest Teens Say They’re Waiting, and How to Start Now

According to a recent Fidelity Investments study, nearly 75% of teens say investing is important, but only about 23% have actually started.
So what’s stopping the majority from jumping in?

It’s not laziness or lack of interest. It’s uncertainty. Many teens feel investing is for “adults,” something they’ll get to “someday.” But here’s the truth: someday might be too late to take full advantage of time, the most powerful factor in building wealth.

At Cash Kid Podcast, we believe you’re never too young to start learning about money, and never too early to let it start working for you.

Let’s unpack why so many teens are waiting, and how you (and your parents) can take the first steps today toward investing confidence.

The Real Reasons Teens Aren’t Investing Yet

1. “I don’t know where to start.”

This is the most common answer. Investing can feel like an entirely different language: stocks, ETFs, index funds, dividends. But you don’t need to know it all to get started.
Think of investing like learning a sport: you don’t master all the rules before you play your first game. You start small, practice, and learn as you go.

2. “I’m too young to have an account.”

This one’s partly true. Most brokerage platforms require you to be 18. But there’s a great workaround: custodial accounts.
A parent or guardian can open an investment account for you in your name. That means you own the assets, but they manage it until you turn 18 (or 21, depending on your state). Once you’re old enough, the account transfers fully to you and you’ll already have a head start most adults wish they had.

3. “What if I lose money?”

Every investor, even the professionals, has asked this question. And yes, markets go up and down. But here’s what’s often missed: when you start early, you have time on your side.
Even if your investments dip short-term, history shows that long-term investing (especially in diversified funds like index ETFs) tends to grow steadily. Starting at 13 or 15 gives you decades to recover, adjust, and grow.

4. “I don’t have enough money.”

You don’t need hundreds or thousands to start. Many custodial investment platforms let you invest with as little as $5.
The key is consistency, not the amount. Think $5 a week or $20 a month. That’s less than one pizza night, allowance payment, or lawn mowed but with compound interest, it adds up to something powerful.

Wy Starting Early Makes a Huge Difference

Let’s look at two teens:

• Alex starts investing at 13, putting away just $25 a month.
• Taylor waits until 23 to start, investing the same amount monthly.

If both earn an average 7% return and stop at age 60, Alex will have around $53,000, while Taylor will have $26,000.

Same effort, double the outcome, just by starting early. That’s the magic of compound growth: your money makes money, and then that money makes more money.

How Teens Can Start Investing Today

1. Talk to Your Parents About a Custodial Account

Ask if they’d be open to setting one up through platforms like Fidelity Youth Account, Charles Schwab Custodial Brokerage, or Greenlight Max.
They’re designed for families, with educational tools, parental oversight, and low minimums.

2. Pick Simple Investments First

Skip the hype of “hot stocks.” Start with index funds or ETFs, these are baskets of companies that track the market’s overall performance.
Example: the S&P 500 ETF holds shares in 500 of America’s biggest companies. If the market grows, you grow too.

3. Invest What You Earn

Whether it’s babysitting, mowing lawns, or selling crafts online, allocate a percentage of your earnings to investing. Even 10% of every dollar earned can start a habit that lasts a lifetime.

4. Set a Goal

Investing is more exciting when it’s tied to purpose. Maybe it’s saving for a car, college, or your first business venture. Setting a goal turns “saving” into “building something.”

5. Track Your Progress

Use a simple app or journal to log what you invest each month. Seeing your money grow — even slowly, builds motivation and confidence.

A Message for Parents: How to Lead the Conversation

If you’re a parent, this might be the perfect window to start financial conversations that matter most. The research shows kids who discuss money with their parents regularly are three times more likely to feel confident about managing it as adults.

Here’s how to start those talks naturally:

1. Share Your Own Money Story

Be open about what you wish you’d known at their age. Talk about mistakes you made, wins you had, and lessons learned along the way. It makes money feel real and relatable, not off-limits or intimidating.

2. Make It a Shared Project

Set up an account together. Watch how it performs. Let them help decide what to invest in, maybe a company they recognize (like Apple or Nike).
When you invite them into the process, it becomes a bonding activity, not a lecture.

3. Celebrate Small Wins

If they save $50, invest $10, or research a stock, celebrate it! A little encouragement early on can build lifelong confidence with money.

4. Model the Behavior

Let your child see you saving, giving, or investing. When you talk about financial goals out loud, they learn not just from your words, but from your example.

The Bottom Line

Most teens aren’t waiting because they don’t care, they’re waiting because they’re unsure. The good news? You don’t have to have it all figured out to begin. You just need to take the first step.

Whether it’s opening a custodial account, learning together as a family, or investing your first $10, what matters most is that you start.

Because the sooner you begin, the more time your money has to grow and the more confident you’ll feel managing it when you’re older.

Check out our Cash Kid Podcast for more practical advice and family-friendly conversations about earning, saving, and investing money earlier in life. Remember, anyone can be a Cash Kid, you just have to learn how to become one. Cash Kid, Out!