Many teens are reluctant to invest in the stock market after the GameStop frenzy, survey finds

PUBLISHED MON, SEP 6 20219:00 AM EDT

Kate Dore, CFP®@KATEDORE

SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email

KEY POINTS

• Only half of teenagers believe the stock market is “a good thing” for everyday Americans, according to a Junior Achievement survey.
• And 37% of teens wouldn’t invest if given money to participate, responses show.
• Their reluctance to invest may put a “serious dent” in saving for the future, financial experts say.

In this article

• GME+0.09 (+0.05%)

   

Getty Images

Teenagers have mixed feelings about the stock market after GameStop’s trading frenzy, according to a survey from nonprofit youth organization Junior Achievement USA and tax, accounting and consulting firm RSM examining their beliefs about investing. 

Following GameStop’s rises and falls, 39% of teens see the stock market as an opportunity to “make money quickly,” while 20% believe it’s “too risky.” However, 40% still think stocks are a “good long-term investment,” the survey revealed. 

While the GameStop saga captured teens’ attention, the events may have turned away some future investors, responses show. Only half of teens believe the stock market is “a good thing” for everyday Americans, responses show.

Moreover, 37% of teens wouldn’t invest if given money to participate in the stock market, according to the survey.

More from Personal Finance:
Here’s how retirement plan tax breaks may widen racial wealth gaps
What Social Security funds’ new depletion dates mean for your benefits
Millions of Americans will lose unemployment benefits this weekend

“A percentage of teens have been basically sidelined because of this,” said Ed Grocholski, senior vice president of brand for Junior Achievement USA.

“It’s understandable why they would be hesitant to put money into the stock market,” said certified financial planner Leona Edwards, wealth advisor at Mariner Wealth Advisors in Nashville. “But it could put a serious dent in how much they are able to save in the future.”

Their reluctance to invest may affect putting money into their first workplace 401(k) plan, Grocholski said.