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Teenagers Turning Their Pennies Into a Future Home and a Retirement Nest Egg

  //stocks-investing.news-articles.net/content/202 .. nto-a-future-home-and-a-retirement-nest-egg.html
  Published in Stocks and Investing on Saturday, November 29th 2025 at 9:37 GMT by The Wall Street Journal

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Teenagers Turning Their Pennies Into a Future Home and a Retirement Nest Egg

In a world where the stock market is often seen as a playground for seasoned investors and institutional money, a new cohort is stepping onto the floor. A recent MSN Money feature, “Meet the Teens Investing in Stocks for Their Future Home and Retirement” (https://www.msn.com/en-us/money/top-stocks/meet-the-teens-investing-in-stocks-for-their-future-home-and-retirement/ar-AA1RnRiY), shines a light on this surprising phenomenon. The article profiles a handful of teenagers who have already begun building portfolios with the dual ambitions of buying their first home and setting the foundation for a comfortable retirement. While the stories are heart‑warming and inspiring, the piece also offers practical take‑aways and links to further resources that can help other young people jump‑start their financial journeys.

1. The Teens Who Are Already Planning Ahead

The article opens with a snapshot of three teenagers—Emily, a 16‑year‑old from Seattle, Alex, a 17‑year‑old high‑school senior in Denver, and Maya, a 15‑year‑old from Boston—who all share one common thread: a disciplined investment routine that began in middle school. Each of them explains that the idea of “saving for a house” was first introduced by a family member and later amplified by a fascination with the stock market’s potential for growth.

• Emily uses a custodial Roth IRA, opened through Fidelity, to keep her gains tax‑advantaged. She says that she sets aside a portion of her birthday gifts and part‑time job earnings every month. “I treat it like a savings account but with higher returns,” she says.

• Alex started with a small, diversified portfolio in a brokerage app called Robinhood (link included in the article). He has a keen interest in technology stocks, especially companies that are expected to grow rapidly over the next decade. “I read a lot of company reports and think about the future of AI,” he says.

• Maya is a bit older, but she’s been investing since she was 13 through a family‑sponsored “stock‑saving” plan. She’s been investing in blue‑chip companies, and she even uses a budgeting app (link provided) to keep track of her expenses and investment performance.

2. Why the Focus Is on a Future Home

While many teens are preoccupied with buying the latest gadget or going on a trip, the article emphasizes why a home is a top priority for these youngsters. According to a recent U.S. Census Bureau report—link embedded in the article—median home prices in 2023 were around $400,000, a figure that will likely climb in the coming years. For a teenager who is still 4–5 years away from completing a college degree, the idea of paying a mortgage outright is a long‑term goal that requires substantial savings.

The piece quotes a financial planner from Charles Schwab (link to a separate article about long‑term real‑estate planning) who explains that a diversified stock portfolio can grow at an average annual rate of 7–8% over the long run. If a teen starts investing $200 a month at age 15, by the time they are 30 the portfolio could exceed $100,000, assuming consistent growth and reinvestment of dividends. This sum could be used to make a down payment on a home, or even to pay off a mortgage early.

3. Retirement as a Long‑Term Mindset

In addition to the immediate goal of homeownership, the teenagers interviewed also look toward the distant horizon: retirement. The article includes a sidebar featuring a short video from Bogleheads.org (link to the video) where a 45‑year‑old investor explains why starting early can make a huge difference. Using the same hypothetical savings of $200 a month, the article projects that by age 60 the portfolio would be worth around $1.2 million. “I’m not planning to retire early, but I want to be financially comfortable,” says Alex. “I think the idea of a ‘retirement fund’ is important to instill a long‑term perspective.”

The MSN Money piece also links to a guide on “Retirement Accounts for Teens” (link to an Investopedia article), which explains the differences between custodial IRAs, 401(k)s through part‑time jobs, and regular brokerage accounts. Readers can see how each option is affected by taxes, penalties, and potential employer matches.

4. The Tools They Use

A recurring theme in the article is the role of technology. The teens use a combination of platforms:

• Robinhood for easy, commission‑free trades (though the article cautions about the platform’s gamified interface and potential for impulsive decisions).
• Fidelity’s custodial accounts for higher investment options and educational resources.
• Mint or YNAB (You Need A Budget) for budgeting, with screenshots of how they set up “investment goals” alongside “monthly expenses.”

Additionally, the article features a link to a webinar hosted by Morningstar that teaches “Stock Market Basics for High School Students.” The webinar covers essential concepts such as price‑to‑earnings ratios, market capitalization, and the importance of diversification.

5. Parental Guidance and the Role of Family

The piece underscores that teen investing isn’t just a solo endeavor; it often involves parents, teachers, or mentors. A parent of Maya describes how she and her mother established a “family investment club” where they discuss market news and set quarterly investment targets. The article includes a link to a National Association of Personal Financial Advisors (NAPFA) guide on “Encouraging Youth to Invest.” This guide offers tips such as starting small, teaching the concept of risk tolerance, and encouraging curiosity about how companies operate.

6. Key Take‑Aways for Young Investors

The MSN Money article concludes with actionable advice:

1. Start Small, Think Big – Even $50 a month can accumulate into a significant amount over time.
2. Diversify Early – Mix equities, bonds, and ETFs to reduce risk.
3. Use Tax‑Advantaged Accounts – Custodial Roth IRAs can grow tax‑free if contributions stay below the annual limit.
4. Stay Educated – Use free resources from Investopedia, Khan Academy, and financial news outlets.
5. Maintain Discipline – Treat investment contributions as a “non‑optional” expense.

7. Further Reading

Readers are encouraged to explore the links embedded throughout the article for deeper dives. These include:

• A CNBC piece on “How Teens Are Changing the Investment Landscape” (link).
• A PDF from the U.S. Securities and Exchange Commission titled “Investing for Kids” (link).
• A YouTube playlist from TED‑Ed on “The Science of Investing” (link).

These resources provide a broad view of why early investment matters, how to navigate the complexities of the market, and the real-life impact on long‑term goals like homeownership and retirement.

Bottom Line

The stories of Emily, Alex, Maya, and their peers illustrate that the stock market is no longer the domain of adults alone. Teens today are savvy enough to recognize the compounding power of early investment, and they’re using technology, family support, and a forward‑looking mindset to secure a future home and a comfortable retirement. The MSN Money article not only celebrates these young pioneers but also equips the next generation with the knowledge and tools to follow in their footsteps. Whether you’re a parent, educator, or young investor yourself, the lesson is clear: the earlier you start, the more you can accomplish—one share, one dollar, one goal at a time.