We’ve all heard the saying “money doesn’t grow on trees” or in Korean, “땅을 파봐라 돈이 나오나” from our parents once in our childhood. Clearly, the intention behind the saying is to teach the importance of saving in order at a young age for them to work their way to success. But frankly, there is no right or wrong way to “teach money” to children other than them experiencing successes and failures on their own. Hence, grasping the concept of investing as a teen does not only train money management skills but also teaches life skills like patience and responsibility early in life.
Investing is about the long term. Every investor’s dream is to become the next Warren Buffett but no one can predict the more than ever volatile market. Hence, this is where patience comes in hand. Just like how kids learn how to wait for their turn, stock trading requires faith in oneself and perseverance in achieving success. For instance, Jaydyn Carr, a 10 year-old in love with video games, received Gamestop shares as a Kwanzaa gift in 2019. He bought 10 shares at $6.19 and sold his shares at $351 in January earning a total of $3,200- a return more than 5,000 percent on an investment of about $60. Some may say that Carr’s earning is a result of mere chance, yet it is certain that there are important lessons Carr took out of this experience that he wouldn’t have learned anywhere else. Although Carr might not have been the most active investor, he witnessed the “Robinhood Effect” first hand, an experience no other 10 year old would have had. Hence, analyzing why stock prices would go down or up, trusting ones decision, and waiting for results to be successful are know-hows that will eventually become lifeskills. After all, as Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient.”
Of course, there are other money lessons like learning how to set a budget, use a debit card, differentiate needs and wants and more so, yet as our society develops more rapidly than ever, becoming a teen-investor teaches one to be socially responsible as an investor of a company. Investing in a company or sector that one is passionate about is crucial to understand and keep up with what the company is producing or developing. More importantly, in order for one to invest in a stock, it is essential that they know everything about the company ranging from its financial analyses like trends in earnings growth or price-earning ratio to internal aspects like how they are treating their employees. Becoming an investor is followed by these responsibilities that naturally drives one to research what is going on in the status quo. Hence, teenagers can gain a sense of responsibility before even beginning their first job.
So, when is the right time to start trading stocks? There is no “right” age to start investing yet getting a head start would only let one be ahead of the money game.
김현서 강남포스트 학생기자 firstname.lastname@example.org
<저작권자 © 강남포스트, 무단 전재 및 재배포 금지>