Seth Wunder, the Chief Financial Officer of Acorns, believes that eight years old is an ideal age for children to begin learning about the stock market. Drawing from his own childhood experience in a middle school investing club, Wunder argues that financial literacy should be treated similarly to physical health. Just as parents encourage their children to exercise or eat well to build lifelong wellness, he suggests that establishing healthy money habits early prevents future struggle and provides a necessary shield against the modern trend of gamified trading and unreliable social media financial tips.
One of the primary pillars of Wunder’s philosophy is the power of consistency. He encourages parents to teach their children that investing does not require a fortune to start; even contributing five dollars a day can create a powerful foundation. By focusing on the act of regular saving rather than the size of the initial deposit, young people can overcome the paralysis that often stops adults from entering the market. This habitual approach turns investing into a routine behavior rather than a daunting chore.
Beyond consistency, Wunder emphasizes two critical conceptual lessons: compound growth and emotional resilience during market volatility. He describes compounding returns as one of the wonders of the world, explaining that small amounts grow exponentially over time when left alone. Coupled with this is the need to understand that markets naturally ebb and flow. Rather than panicking during a downturn, children should learn to view price drops as opportunities to buy assets at a discount.
Ultimately, Wunder warns against the temptation to try and predict short term movements, reminding parents and kids alike that time in the market is far more valuable than timing the market. Because much of a portfolio’s gain happens on just a handful of high performing days each year, staying invested through both peaks and valleys is the most reliable path to wealth. By instilling these values early, parents can help their children distinguish between strategic investing and mere gambling.