I have a 16 year old son who has been accumulating birthday money and stuff over the years, and has started working very part time (4-5 hours a week at $15/hour for a company my mom owns).
He is of the mindset that he needs to just keep his money in his piggy bank in his room so he can get it when he needs it. I’ve tried explaining to him that compounding interest is the 8th wonder of the world, and that if he starts a high yield savings account at 16, he will have a 5-6 year head start, which come the tail end of his investing life would make a significant impact on his total assets. This doesn’t even account for if he decided to invest in the market, which could have even greater benefits.
Unfortunately, at 16, he doesn’t want to think about what happens when he’s 70.
What are some good ways to illustrate or explain to him that even if he’s not investing a large sum right now, he’s so young that those extra 5-6 years worth of saving/investing will be significant down the road?
At 16, thinking about retirement is like trying to convince someone to eat vegetables when there’s cake on the table. The future is this vague, distant thing, and when you’re young, the present feels endless.
But there’s a way to flip the script.
Instead of talking about what happens at 70, talk about what happens at 25.
Your son probably isn’t dreaming about his golden years. But he might be thinking about getting his first apartment, buying a car, traveling with friends, or even starting a business someday. The key is to connect investing to something he actually cares about in the next 5-10 years—not the next 50.
Here’s how you can frame it:
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The $100 Rule – Show him that $100 invested today could be $500+ by the time he’s graduating college or buying his first car. That’s way more interesting than “Look at this chart where you’ll have millions in 50 years.”
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The Work-Once, Get Paid Forever Concept – Right now, he trades hours for dollars. Investing is the opposite—money works for him. The sooner he starts, the sooner he can get to a point where he doesn’t have to clock in at all.
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The “Would You Rather?” Game – Ask him: “Would you rather be the guy who has money when he wants to do something fun, or the guy always wishing he had saved?” At some point in the next decade, he’ll want to do something big. Investing is future-proofing for that moment.
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Turn It Into a Challenge – Some kids love competition. Tell him, “I bet if you put $500 into an index fund now, by the time you’re 25, it’ll beat out what most of your friends have in their savings account.” If he likes gaming, frame investing as a high-score leaderboard—except the game is real life.
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Give Him Skin in the Game – Maybe he doesn’t trust the process yet. Offer to match whatever he invests as a short-term incentive. If he puts in $100, you match it. Once he sees it grow, he’ll be hooked.
The biggest thing? Make it about now, not about 70 years from now. If you can tie investing to freedom, choices, and opportunities in his 20s, the long-term part will take care of itself.