Ep 265: Turning Teens Into Savvy Investors

Maya Corbic, author of From Piggy Banks to Stocks, tells us how
to turn allowance into financial lessons. Maya dishes on the
potential dangers of blindly trusting financial advisors, the
future of investing, and investing for generational wealth.





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Full Show Notes


Investing often feels out of reach for teens. The stock market
can seem complex and intimidating, and most kids just don’t think
about their money working for them. But investing early and
shifting teens’ money mindset can set them up for financial
success down the road.


This week, we’re talking with Maya Corbic, financial educator and
author of “From Piggy Banks to Stocks: The Ultimate Guide for a
Young Investor.” Maya has spent over a decade teaching kids and
teens how to manage money wisely. After paying off all her debts
and realizing she didn’t have to work a 9 to 5 anymore, Maya
decided to dedicate her life to helping others improve their
financial literacy.


On the show, Maya is breaking down the basics of investing in
simple terms teens can grasp. We’re discussing how to switch
teens’ thinking from being consumers to being owners and
investors. Maya explains what teens should learn about money
before they’re ready to start investing. She also reveals common
mistakes parents make when introducing kids to investing
concepts.


Turning Teens into Investors Instead of Just
Consumers


Maya suggests reframing the way we talk to teens about the
products they love to use. For example, teens may be huge fans of
Apple products. But instead of seeing themselves as consumers of
iPhones and Apple watches, Maya encourages teens to think like
owners. They can purchase stock and actually own part of the
company behind their favorite tech gadgets. This sense of
ownership switches teens thinking and gets them excited about
investing.


Owning even just one share of a company ties teens to brands in a
whole new way. And it opens their eyes to the idea that they can
earn money by owning stock, not just by traditional jobs. Maya
says this revelation is often the needed spark to get teens
interested in investing and understanding market principles.


But teens can’t just jump into the stock market without some
financial literacy. First, Maya takes us through some money
basics every teen should grasp.


Money Lessons to Precede Investing


While investing early has major advantages, teens still need to
learn some fundamental money lessons before they start buying
stocks. Maya outlines concepts like:


The difference between wants and needs

How to budget allowance money

Smart spending habits

The power of saving

How interest works



Learning these basic building blocks paves the way for later
investing success. They also ensure teens have a balanced
relationship with money.


Maya suggests parents invest small sums on behalf of young teens
before they’re ready to make their own investment decisions. But
by the time teens reach high school, they have the cognitive
ability to understand stocks and start directing their own
investments, Maya explains.


Common Pitfalls to Avoid


Eager parents often make mistakes when introducing teens to
investing. Investing in individual stocks instead of funds,
failing to assess risk tolerance, and picking investments not
aligned with the teen’s goals are a few pitfalls Maya sees
parents commonly fall into.


She warns that every teen’s investment portfolio should look
different based on their objectives, time horizon and risk
appetite. Maya advises parents help teens complete free risk
assessment questionnaires rather than just telling them what to
buy. This empowers teens to understand market dynamics and make
informed decisions.


Maya also cautions parents not to overwhelm teens with complex
investing jargon. Finding relatable examples and analogies is key
to getting teens excited about investing without confusing them.
Comparing it to lending money and earning interest is one
comparison Maya finds effective and easy to grasp.


On the Show...


My conversation with Maya sheds light on the immense benefits of
shaping teens money mindset early on. On top of the topics
outlined above, we also discuss:


Getting teens interested in earning passive income

Why investing is important regardless of income level

Different investment vehicles suited for teens’ goals

Resources for educating yourself about investing

Realistic expectations about returns



Maya breaks investing down into understandable language. Her book
and community help many parents finally grasp market principles
themselves!


To learn more from Maya about teaching financial literacy, visit
her website at mayasmoneymatters.ca or find her on Instagram





Sponsored by Equip: Eating disorder treatment
that works—delivered at home. Visit equip.health/talking for more
information, and a free consultation.