A new generation of teenage investors is leveraging artificial intelligence tools like ChatGPT to navigate the stock market, marking an unprecedented shift in youth investing behavior.
Recent data from Charles Schwab's Modern Wealth Survey reveals that Gen Z investors are entering the market at age 19 on average, years ahead of previous generations who typically started at 25 (Millennials) or 32 (Gen X).
Take 15-year-old Ryan Sorrell, who works part-time at a retirement home and channels his $800 monthly earnings into Bitcoin and stocks. Sorrell uses ChatGPT to analyze potential investment scenarios and project returns. "It helps me run through scenarios, to see where I'd be if I did that in 10 years' time," he explained.
The trend extends beyond individual cases. Eighteen-year-old Sophia Castiblanco began her investment journey at 14, using earnings from her YouTube channel. She now invests $3,000 monthly in major tech companies like Tesla, Amazon, and Nvidia. Castiblanco advocates for early financial education, noting that schools should implement finance classes for younger students.
While some teens find success, investment experts advise caution, particularly regarding cryptocurrency and trending stocks. Brian Belski of BMO Capital Markets recommends young investors stick to familiar companies: "Always invest in things that you're using."
This movement represents a broader shift in teenage financial behavior. Instead of spending on consumer goods, many young investors like Sorrell are prioritizing long-term returns. As he puts it, "I'm putting it in the market and making a return instead of just losing it for a pair of shoes."
The phenomenon has become so widespread that at some schools, like Isaiah Jones's high school in Richmond, Virginia, trading discussions are now commonplace among students. Jones, 16, has already built a cryptocurrency portfolio using earnings from lawn-mowing.
This new wave of tech-savvy teenage investors suggests a transformation in how younger generations approach wealth building, combining traditional earning methods with modern AI tools to make informed investment decisions.