Teens, Social media and their financial security there

By Mikael T. November 01,2021

Forty-five percent of teenagers in the survey said they became more interested in investing this year because of the GameStop “short squeeze” frenzy in January, which was partly driven by a concerted effort on social media, according to Wells Fargo. More teenage boys than teenage girls reported increased investing interest because of GameStop.

When it comes to cryptocurrency, half of parents said their teen knows more about Bitcoin than they do, and 45% of teens agreed. 

Teenage boys were much likelier than teenage girls to say they know more than their parents about Bitcoin.

“Social media has a profound influence on our younger generations,” Mariana Martinez, family dynamics consultant with Wells Fargo’s Wealth and Investment Management group, said in the statement. “Those generations grew up with social media and often trust many of the platforms more than their parents do. 

“It is vital to establish solid and open communication, create a shared purpose, and educate our children so that they are prepared for financial independence.”

The Money Talk

Sixty-one percent of surveyed parents said they have had conversations with their teenagers about handling finances, but only 32% said they have talked much about investing. Nine in 10 parents said they wish their parents had taught them more about investments when they were growing up. 

Nearly all parents and teenagers thought it important that high schools teach students about the basics of handling finances, including investing.

Beyond talking to their teen about investing, 29% of parents said they have promoted one or more of the following educational activities to help their teen learn more about investing:

  • Opened a custodial account and invested on their teen’s behalf: 17%.
  • Encouraged their teen to play a simulated stock market game as a learning tool: 13%.
  • Gave stocks to their teen so they can follow and learn about the market: 7%.

Despite their parents’ best intentions, some teens may not be paying attention to the efforts. Only 1 in 5 teens said their parents have engaged with them on any of these activities.

Read Also :  The Money Lessons Spend-To-Save Accounts Teach Children

2 Comments

  • Sam O.

    It's never early to teach children about finances, money management, and more. Let that be from social media or else.

  • Maritza Colbert

    Social media can be a great source of information lately, apart from being able to connect people everywhere.

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