One of the biggest complaints American students have with their country’s education system is its inability to prepare them for the “real world.” Paramount to this complaint is that many high school and even college graduates feel helpless when it comes to finances. Whether it be taxes, savings, or investments, many Millennials and Gen Zers are underprepared.  In fact, one recent report found that over half of Gen Z is largely ignorant of their saving account balances.

Yet, with the advent of the internet, controlling one’s finances has never been easier. Taxes can be done on services like TurboTax, invoices have been automated and streamlined by Freshbooks, and investing has been brought to our fingertips by apps like Robinhood.

Robinhood allows its users to invest in stocks of millions of companies around the world in just a few taps. When you sign up or invite a friend, Robinhood gifts you a free stock worth anywhere from a few bucks to hundreds of dollars. Additionally, the company is currently rolling out its fractional stocks program, whereby users will be able to purchase a fraction of a share of pricey stocks like Amazon and Google.

But Robinhood is only one of many new platforms that make investing easier than ever before.  Charles Schwab and SoFi are two increasingly popular alternatives to Robinhood, and fintech startups, such as this one recently featured on The Uproar, are looking to establish themselves in this growing market.

For the uninitiated, buying stocks is effectively buying a portion of a company. When a company does well, the stock increases in value that you can then sell at a profit. You can either hold the stock for a long time or sell it in minutes. Holding on to the stock is considered safer, as most stocks will generally increase in price as the economy expands. Day trading, as it’s often called, involves purchasing a stock with the intention of selling it by the time the stock market closes later that day. Skilled (or just plain lucky) day traders are able to exploit small crashes companies have in attempts to earn a profit on their rebound.

One notable advantage of long-term stock ownership is the accrual of dividends.  Not all corporations offer dividends, but those that do so pay their stockholders quarterly simply as an incentive to continue owning the stock.  In other words, dividends offer a simple way to earn what is commonly called “passive income,” or earnings that you don’t have to work for.

For most of the stock market’s history, stock trading been done through middlemen, called brokers. These brokers would buy and sell stocks for clients and then take a cut of the money. However, apps like Robinhood now allow anyone to invest freely.  All you have to do is transfer money from your bank account to your app account and then purchase stock. 

In light of warnings about a looming retirement crisis, I implore every high schooler to learn how to invest for their future. Take $10 or $20 from your next paycheck and buy one or two shares of a company. Robinhood has expert analyses on every stock to let you know if they think it’s a good buy. It’s not something you have to check every day, or even every week. You can let the stocks sit in your portfolio for years if you feel like it. But by starting to invest now, you can make mistakes, take risks, and not feel pressured to cash out too soon.

When you are older, it is likely that, if you earn enough, some savvy accountant will handle your investments for you. Still, it is good to understand what they are talking about to make sure you don’t get scammed out of your money. Furthermore, if you decide to invest yourself, starting now will allow you to fail and lose only a small amount rather than the potential hundreds or thousands you will invest when you are older.

Since downloading Robinhood at the beginning of November 2019, I have earned 46% through free shares and smart investments.  Sure, my initial investment was only $20, but had I invested $200 instead, my 46% gain in only four months would look a lot more attractive. Regardless, for the two minutes a day I spend looking at the app, I would call myself a success.