Advisors face a keen but anxious generation as teens flag a widening investing knowledge gap
More than half of Canadian teens feel nervous, confused or scared about investing – even as most say they want to learn how to do it.
According to the Fidelity Investment Canada ULC (Fidelity) Young Canadian study conducted in partnership with Ipsos, 60 percent of Canadian teens (15–17 years old) think it is important for them to learn about how to start investing money.
At the same time, the study shows that 59 percent of them have negative emotions when they think about investing.
The study finds that a knowledge gap persists: 25 percent identify as beginners, 29 percent as novices, 39 percent as intermediate and only 8 percent as experts.
Fidelity says the high number of teenagers who feel nervous, confused and scared about investing underscores the importance of targeted education to enhance their investment literacy early in their journey.
By providing resources sooner, it says, it ensures that by the time they reach investment age, they are equipped with the knowledge to understand the benefits, costs and risks associated with investing.
Advisors appear to support a stronger role for schools in closing that gap.
In a recent online survey of 2,383 financial advisors, 2,209 (92 percent) said they support making financial literacy, including how to invest wisely, a graduation requirement in Ontario high schools and a national standard across Canada.
Linda Passarelli, VP talent management at Fidelity Investments Canada, said financial advisors and educators help young Canadians understand money, investing and how to work toward their financial goals.
She added that more investment-focused financial literacy in schools could improve access to financial education for high school students across all provinces and territories.
The study also offers a snapshot of how young Canadians think about when, and with how much, to start investing.
One-third say less than $1,000 is enough to begin.
Among young adults aged 18–34, 49 percent believe people should start investing between 18 and 24, with the average ideal starting age at 18 and 29 percent wanting to start even earlier.
Among teenagers, 83 percent say investing should begin between 18 and 24, with an average preferred age of 20.
For young adults, the study notes that investment priorities remain consistent: saving for retirement (36 percent), home buying or paying a mortgage (35 percent) and building emergency savings (34 percent).
