Many teens are hesitant about scholarship, survey finds

Many teens are hesitant about scholarship, survey finds

Teens have mixed feelings about the stock market after GameStop’s trading frenzy, according to a survey by nonprofit youth organization Junior Achievement USA and tax, accounting and consulting firm RSM.

Following the rise and fall of GameStop, 39% of teens see the stock market as an opportunity to “make money fast”, while 20% think it is “too risky”. However, 40% still think the stock is a “good long-term investment,” the survey showed.

While the GameStop saga has captured the attention of teens, events may have turned some future investors away, according to the reactions. Only half of teens think the stock market is “a good thing” for ordinary Americans, according to reactions.

In addition, according to the survey, 37% of teens would not invest if they received money to participate in the scholarship.

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“A percentage of teens are basically left out because of it,” said Ed Grocholsky, senior vice president of branding for Junior Achievement USA.

“It is understandable that they are reluctant to invest money in the stock market,” said certified financial planner Leona Edwards, wealth advisor at Mariner Wealth Advisors in Nashville. “But it can seriously reduce the amount they will be able to save in the future.”

Grocholsky said his reluctance to invest could influence investing in his first 401 (k) workplace plan.

Many of these teens are already thinking about different ways to invest outside of the stock market and diversification is a very good thing.

Leona edwards

Wealth Advisor at Mariner Wealth Advisors

“We all know that if you want to invest for your retirement, you have to start early,” he said. “What we see here for a good chunk of teens is not going to happen.”

While the survey showed teens’ reluctance to the stock market, there were also signs of interest.

If given funds to participate, most teens choose to invest, 43% prefer the stock market, 25% go cryptocurrency, and 24% invest money in real estate.

“A lot of these teens are already thinking about different ways to invest besides the stock market,” Edwards said. “And bringing diversity is a very good thing. “

The survey also found that teens learn about the stock market, with 43% relying on social media. Other young investors turned to parents (35%), websites (30%) and schools (29%).

“We all know that [social media] Not an unbiased source of information, ”Grocholsky said. “So what they found was the worst case scenario and the best case scenario. “

These results are consistent with responses to a new CNBC / Momentive Invest in You survey. According to the report, around 35% of people between the ages of 18 and 34 take to social media to research investment ideas.

“I’m not against it because there are a lot of knowledgeable people out there on social media,” Edwards said. “But investors need to do their research and find out if the people they consult are worthy of consideration.”

The survey interviewed 130-13 to 17-year-olds via market research firm Engine Insights from July 15-20.

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