Why More Teenagers Are Learning to Invest Like Wall Street Pros · Babson Thought & Action

May 12, 2026 - 21:45

A growing number of teenagers are skipping the typical summer job savings account and diving straight into the stock market, mimicking strategies once reserved for professional traders. Babson College finance expert Patrick Gregory has taken note of this shift, offering practical advice for young investors as major brokerage firms increasingly target Generation Z.

Gregory points out that the rise of commission-free trading apps has lowered the barrier to entry, making it easy for teens to buy and sell stocks with just a few taps on a smartphone. However, he warns that this convenience can lead to risky behavior, like chasing meme stocks or day trading without a solid plan. "The biggest mistake I see is treating the market like a casino," Gregory says. "Teens need to understand that investing is a long-term game, not a quick way to get rich."

For those starting out, Gregory recommends focusing on low-cost index funds or exchange-traded funds rather than picking individual stocks. He also stresses the importance of building a diversified portfolio and avoiding the temptation to panic sell during market dips. Another key tip is to use a custodial account, which allows a parent or guardian to oversee trades until the teen turns 18.

As more young people enter the market, Gregory believes financial literacy will become an essential life skill. He encourages teens to read annual reports, follow reputable financial news, and ask questions before making any move. With the right habits, he says, these young investors can build wealth steadily over time, just like the pros.