young investors in the money market?

article: Savvy young investors in the money market by Tessa Wong, The Straits Time 2 july 2007

There is a growing number in teens as young as secondary students to the early 20s who are getting involved in financial trading. They handle real money with sums as large as $200,000 as investments. There are definitely advantages and disadvantages of youths getting involved in financial trading since they are mostly inexperienced youths who hardly have enough working experience to be able to make the best decision when comes to financial management. However, I am giving my full hundred percent support for youths getting involved in financial trading.

Many got their capital from their parents who supported them in their involvement in the financial market. They believe that their children are able to handle the money wisely and most importantly, learning life skills and experience as they trade in the financial market. As mentioned by Mr Tan Choon Hwa, father of the teen, Ace, “He (Ace) will learn life skills and god finance management.” It is undeniable that youths do earn life experience as they encounter difficulties or make hard decisions during their trade. As they learn and eventually make up a choice, the youths will learn some skills or values that they pick up along the way. This adds up to their life experience that may help them in their future work.
However, it is to note that the youths are handling with real money and are trading in the financial market. This is no child’s play and with every investment comes along risks. Thus, the youths need to be guided and be given advice for their decision. Some may have their family members who have experience in the trading world to act as their mentors. For those who are not so fortunate, they are still able to receive help from clubs or associations. Foe example, I-cube is an association formed last year by Singapore’s three universities’ investment clubs. It organizes financial literacy events for students from secondary schools, junior colleges and polytechnics. Thus, with the availability of sources to teach the youths and advising them on making the wise choice, why should we discourage the youths from learning financial management early?