According to BSE data, the number of
Demat accounts held by individuals aged between 18-20 years has risen to 16.1 million in 2023 from 3.4 million in 2021. The jump in numbers is quite surprising!

Gen-Z peeps are super-confident about most things because they opt for DIY approach. With a multitude of Online Investment Options, youngsters are becoming more and more aware of Importance of Investing. However, inculcating Good Money Habits in teenagers is our responsibility.

The participation of youngsters in IPOs floated by smaller companies is also being witnessed and even the number of IPOs saw an exponential rise in 2023 compared to 2022.

Progressive, isn’t it? We can see that most teenagers are keen to learn about the market and manage their finances at an early age.

The best way to get them started is to first teach them how to budget, save, and manage so that they can invest their money wisely from a young age. This includes encouraging them to set financial goals, minimize unnecessary expenses, and avoid debt. They should also learn about the importance of emergency funds, credit scores, and budgeting tools.

Although investing is a crucial part of money management, we must set the ground rules clear before they set sail on their long investment journey. Teaching good money habits at an early age can help young investors develop a strong foundation for financial success in the future.

This is especially important for adolescents who don’t do their homework before investing. Yeah, the cocky ones, you know? The ones with the ‘know-it-all attitude’. Then, there is another category of youngsters who do a lot of research and prepare a set of questions before investing to make informed decisions.

Each parent has their own way of dealing with teenagers. So, when it’s about instilling good money habits in them, there is no one-size-fits-all approach here.

But what tops the list in terms of good money habits is teaching them the basics. They should at least know the 50-30-20 rule.

Briefly, this rule suggests that we can put
- 50% of our money towards NEEDS
- 30% towards WANTS
- 20% towards SAVINGS

In terms of savings, there are a plethora of ways to save; and the most desirable method of saving is to invest and multiply your investments in the long haul with the power of compounding. 

When AI is involved in the process, you’ll definitely see the magic
of compounding in the long run.

When you start out, you don’t know which stocks to invest in. Thanks to Ai, our products like All Rounder and Algrow take away the hassle of analyzing market trends and timing the market.

Innovage Investment Advisers Private Limited

Registered address: A 703/704, Eureka Towers, Mind Space, Malad (West), Mumbai - 400064. 

SEBI registered Investment Adviser having registration no. INA 000003809 (Valid from 13th Nov 2015 - Perpetual). AMFI Distributor Number: ARN No. 87155. (IRDAI) registration no. CA0339

Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.