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The Crucial Role of Early Investing and Challenges Faced by Students / By: Kavin Ramasamy

Investing is a powerful tool allowing individuals to grow wealth and achieve long-term financial goals. At its core, investing involves allocating your money to various assets, such as stocks, bonds, real estate, or mutual funds, expecting to generate a return on your initial investment over time. As of 2023, 61% of adults in the US invest money in the stock market (Statista, 2023). Generally, starting early in the investing process can yield higher returns and open doors to financial freedom. Still, for many, especially students, the path to investing can seem daunting, as many lack the confidence and resources to start investing early. 

Investing early often sets people up for success in the long term. A chart from Business Insider shows that investing at 25 versus 35 can lead to a 180% increase in revenue. (Loudenback, 2019). According to Myles Gage, COO and co-founder of Rapunzl Investments, “If you begin allocating your income to saving and investing early on, it’ll be easier to continue that habit or routine into adulthood.”Additionally, the losses caused by inflation or crashes can be mitigated with more robust portfolios by investing over time. 

Though many benefits are associated with early investing, many teenagers lack the confidence and resources to start. According to Forbes, 75% of teens don’t feel confident about their financial education (Curcio, 2023).  Though many schools offer electives such as business, they are not effective. “I don’t believe schools prepare anyone well enough to be financially stable. There isn’t much of an incentive to do well or pay attention in financial education”, says Alejandro Reagan, a Senior at Whitney Young Magnet High School. As a result, 86% of teens are interested in investing, but nearly half (45%) haven't invested because they don't feel confident or their parents don't know how to help them get started” (Cision PR Newswire, 2021).

Investing is a powerful instrument offering a multitude of advantages. In today's world, more individuals are embarking on investment journeys in stocks, real estate, or bonds. It is crucial to note that commencing the investment journey earlier in life enhances the potential for higher returns. Yet, the younger generation needs more resources and self-assurance to initiate investments. Change can happen by strengthening financial education and promoting more peer, mentor, and family support.


Alejandro Reagan- Senior, 17, Whitney Young Magnet High School Chicago, Illinois

Myles Gage, CMO + Co-Founder Rapunzl Investments


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