Discover the Importance of Financial Literacy, Like the Stock Market, in High School

Summary:

Financial literacy, such as reading the stock market, isn’t a required course in high school. But that doesn’t diminish its importance. Discover why, and how teens can work on these matters on their own.

Key Points:

• As recently as 2022, less than half of U.S. high schools offered any sort of financial literacy courses.
• High school students, on the verge of adulthood, should enter college with a firm understanding of how to manage their own financial portfolio, among other key life skills.
• A recent Fidelity study revealed several details about teen attitudes and interest in investing, including that the vast majority of teens (75%) believe investing is essential.
• Teens should explore other options to learn how to read the stock market by taking relevant financial pre-college online courses. 

As a teen, are you interested in learning how the stock market works and learning to invest yourself? Did you know that games and simulators are available to help you learn how to play the stock market while you’re in high school? Or, that you can participate in tech-forward pre-college online programs that teach you about investing and finance?

In this article, we’ll define a few key terms, plus stats about teens and investing, steps you can take as a teen to become well-versed in the stock market and investing, and we’ll touch on pre-college online courses in finance, investing, and other money-related courses.

First up, let’s define stocks and the stock market.

Defining Stocks and the Stock Market

According to Schwab, stocks, also known as equities or shares, represent partial ownership in a company. When you buy stock, you become a shareholder and have a claim on the company's earnings and assets. The value of your stock can fluctuate based on the company's performance and overall market conditions. 

The stock market is a broad term for the network of exchanges, brokerages, and over-the-counter venues where investors buy and sell shares in publicly traded companies. Though people sometimes use "stock market" to refer to the New York Stock Exchange (NYSE) or the Nasdaq, these exchanges are components of a wider global marketplace.

Even though you need to be 18 or older to buy stocks, there are other ways to learn about—and practice—financial literacy while in high school. 

But what do teens like you say about the stock market?

Fidelity’s Research on Teens and Stock Market Know-How

Teen stock market education is extremely important. High school students, on the verge of adulthood, should enter college with a firm understanding of how to manage their own financial portfolio, among other key life skills. Studies indicate that many teens are already aware of this. 

According to Fidelity's 2023 Teens & Money Study of teenagers aged 13-17, the following were revealed about teen attitudes and interest in investing:

• The vast majority of teens (75%) believe investing is essential.
• 90% of teens view investing as a means to save for their future.
• A significant portion (75%) of teens who don't currently invest intend to start before college graduation.
• More than half (51%) of teens feel confident or knowledgeable about financial topics, including investing.
• Despite the high interest, only 23% of teens have started investing.
• Nearly a third (31%) of teens who plan to invest in the future feel they are too young to start.

Further, Fidelity identifies five steps to teach you, as a teen, about investing:

1. Learn the basics of investing: Start by familiarizing yourself with investing terminology and concepts, such as diversification, mutual funds, and bonds.
2. Start with companies you know: Identify trends that create demand for new products, like the move toward exercise, healthy eating, or cars that pollute less. Positive trends typically lead to a strong stock performance.
3. Understand the importance of diversification: Built on the premise that a portfolio with different asset types will perform better than one with few. While diversification does not ensure a profit or protect from loss, it can help you balance your risk and reward.
4. Determine a “buy and hold” strategy: Even if the stock market is showing volatility, regular investing in quality stocks and holding them for years, not days, has been a good strategy for many investors. 
5. Remember the concept of compounding: Stocks gain interest over time. You have many years to invest, so take your time. 

Beyond Fidelity’s five-step list, you should also consider pre-college online courses in finance and venture capital. 

Pre-College Online Courses in Finance

Prelum, Powered by Kaplan, partners with top universities to bring you pre-college online courses in a variety of topics, including finance. The flexible format allows you to study anywhere, at any time that fits your schedule. Hear from renowned faculty, and enjoy the support of seasoned mentors who will answer your questions and guide your learning experience. Each course finishes with a Capstone Project that, successfully delivered, earns you a Certificate of Completion.

Let’s take a look.

The Georgetown University Pre-College Online course, Becoming an Investor: An Inside Look at Finance is a great investing course for teens. This fascinating course navigates the complex world of finance by breaking down the basic mechanics of financial markets. You’ll learn how valuation models are used to determine a company’s value and how its value affects the price of its stock. You’ll apply what you learn to create an investment portfolio that meets your investment goals.

The Notre Dame Pre-College Online Program also provides finance education for teens with their course, Finance: Creating and Building Wealth. In it, you’ll empower yourself to navigate the complexities of finance with confidence. You'll delve into essential topics such as investing, risk management, budgeting, and how to gain the tools needed to build and protect your wealth. By course’s end, you’ll have crafted a tailored financial plan to guide your long-term financial success.

For teens interested in venture capital, Entrepreneurship and Venture Capital: From Idea to Investment is the course for you. Provided by the William & Mary Pre-College Online Program, this course takes you inside the fast-paced world of venture capital investing. Learn how startups raise money from external sources and understand the key concepts and terms of VC investing. Take on the role of an entrepreneur, and craft a convincing pitch to potential investors.

Remember, financial literacy is extremely important—even for high school students. And, you can’t expect to receive an appropriate education about it from your high school. That’s why pre-college online finance courses are so important.

This was last reviewed by Ashley Simmons on 08/29/2025.