Investing for teenagers: build wealth early with Money Made Simple

Most teenagers are probably more interested in doom-scrolling SnapChat than learning about the S&P 500. And fair enough, investing doesn’t exactly have the same social currency as the latest drop or a viral TikTok. But here’s the thing: starting early, even the basics of investing. can quietly become one of the most powerful advantages you'll ever have.

Time is your superpower

You’ve probably heard of Warren Buffett. If you haven't, he's basically a demi-god in the investing world. He bought his first shares aged 11 and has just retired at the ripe of age of 91. What's he worth? A touch under $160 billion. Yes, that's billion not million... So what's his secret (apart from being frighteningly clever?). Well, it's the old saying that it's "time in" the market not "timing" the market. When it comes to building wealth, time is your best friend and if you’re young, you’ve got loads of it.

Here’s a simple example:

• You invest £500 on your 18th birthday. At a 7% annual return, by age 60 you’ll have around £8,600.

• Your mate invests £1,000 on their 30th birthday. By 60? They’ve got £7,600.

  
  

You invested half as much and still came out ahead. That’s the magic of compounding: like a financial snowball, you earn interest on the interest. And the earlier you start, the more money you can make.

Learn by doing (mistakes now are cheap)

The best way to learn about money? To actually use it. If you’ve got some income from pocket money, a Saturday job or birthday cash, try investing a small amount. You’ll make mistakes (we all do), but it’s better to mess up with £50 now than £5,000 later (particularly if you have a mortgage to pay). Or even better, set up a virtual portfolio with pretend money and see whether you can make a profit.

Either way, every mistake is a free lesson. And by the time you hit your 20s, you’ll likely be more confident (and smarter) than most adults.

Build habits that last a lifetime

Investing isn’t about getting rich overnight — it’s about building smart habits:

• Do you really need those new Adidas Sambas or could you put the money in a Junior ISA (which is tax-free by the way)?

• Are you thinking about future goals - a car, a house or that holidays with your mates?

• Do you understand the balance between risk and reward?

If you start building these habits in school or uni, you’ll be well ahead of the curve.

From consumer to owner

Here’s a mindset shift: if you love a brand, maybe you could own shares in Apple or Nike?

If you sign up to the investing course, you'll learn that there's more to deciding to invest in a company than simply liking their products. But first-hand experience can be a really useful source of research.

Take Games Workshop, for example. If you're into Warhammer and spend weekends painting miniatures in your shed, you’re not alone. The company’s share price has grown more than 3,500% in the past 30 years and it's now in the FTSE 100. Turns out nerds rule the market too.

Investing as a teenager can turn you from someone who spends money into someone who grows it. It makes investing feel a lot more relevant...and a lot more interesting.

So...why bother?

Because time is on your side if you're investing as a teenager. Start learning, start small, and you’ll give yourself a serious head start. You don’t need loads of money (or indeed any money), just a bit of curiosity and consistency.

Your future self will thank you. Possibly from the beach with a cocktail. And if you want to find out more about investing or personal finance, take a look at the courses we offer.

Investing for teenagers

And here's a risk warning: this is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.