Many investment companies are launching brokerage account that is attracting the youngest generation. But experts’ thought that teenagers should concentrate more on their education, not access to the stock markets.
Many well-known brokerage firms are now flirting with the idea of attracting teenagers to the markets. They are launching tools to help teenagers buy and sell individual stocks. These platforms are allowing 13- to 17-year-olds to open savings and brokerage accounts and encouraging teenagers to take investment decisions. However, they are claiming that their activity is monitored by parents or guardians online.
The purpose of the accounts is to teach children about saving and investing. But it is also an avenue to sign up young investors. In fact, it is a race to reach clients as early as possible. That’s why wealth management firms often utilize new platforms to attract new and young clients. It is expected that they will acquire enough investable assets to become profitable in the future.
It is true that people are never too young to start investing. Undoubtedly, we all need to realize the importance of learning money management. But we also need to be aware of the basic formal education of our teenagers. They need proper guidance while investing in stock markets. We have to promote financial literacy instead of individual stock trades to teenagers.