Why get teens and kids involved with investing?

Time is the secret ingredient to potential investing success thanks to the compounding that can happen over years and years. Continually saving over time and investing for growth potential can help your money work hard. A diversified mix of investments that matches your time frame and goals may be one of the best ways to seek growth but there can be a catch—it can take time. The good news is the longer your time frame, the less you may need to save and potential compounding growth can do the hard work. The chart below assumes that someone is able to start saving at age 13. They save $500 per year from age 13 through 19. At age 20, they begin saving $1,000 per year and age 25 begin to save $3,000 each year until age 67. Someone who doesn't start saving before age 25 and contributes $3,000 each year until 67 would potentially end up with less money—all else being equal. The saver who started later may need to save more each year if they wanted to catch up with the early saver.

This is just one example of how starting early can help with saving for retirement—shorter-term goals like education or buying a home can benefit too! Find out how teens and even young children can start saving and investing for their future today.

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