More Young People Are Investing 2/19/26

Summary

Podcast Summary

Podcast: Your Money Minute
Host: Jessica Ettinger, CNBC
Episode Title: More Young People Are Investing
Release Date: February 19, 2026

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Overview

This episode of "Your Money Minute" spotlights the notable surge in young investors entering the market, particularly those from Gen Z. CNBC’s Jessica Ettinger and Charles Schwab CEO Rick Wurster explore statistics behind this trend, highlight the influence of brokerage platforms and social media, and address the critical differences between investing and gambling, especially regarding meme stocks.

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Key Discussion Points & Insights

1. Gen Z is Investing Earlier Than Previous Generations

• Trend Highlighted: A new wave of young investors is participating in the market at increasingly younger ages.
• Statistical Insight:

  “Gen z investors are 46% more likely to invest before they're 21 than the generation before them.”
  — Rick Wurster [00:07]

2. Role of Parental Guidance and Custodial Accounts

• Setup Mechanics: Many under-18 investors are assisted by parents using custodial brokerage accounts.

• Financial Habits Initiation: Kids start investing with earnings from odd jobs (babysitting, lawn mowing), observing compounding growth.

  “Many are helped by parents to set up custodial accounts with a brokerage platform. And they start to show the kid how to invest babysitting and lawn mowing money and watch it grow.”
  — Jessica Ettinger [00:15]

• Competition in the Market: Young investors also gravitate toward platforms like Robinhood, not just traditional brokers like Schwab.

3. Distinguishing Investing From Gambling

• Strong Message Against Confusing the Two:

  “We don't like anything that conflates investing with gambling. Gambling is a form of entertainment. But you shouldn't look to gambling as a way of growing your wealth.”
  — Rick Wurster [00:38]

• Reality Check on Gambling Apps:

  “Less than 5% of people that go on gambling apps take out more money than they put in.”
  — Rick Wurster [00:44]

• Contrast with Investing Apps: Committing to long-term investing generally leads to wealth growth, setting it apart from gambling.

4. The Allure and Risk of Meme Stocks

• Wurster’s Perspective: It’s better to invest in a stock (even a meme stock) than in bets like sports parlays promoted in some brokerage apps.

  “I draw a distinction between a 10 game parlay that you know is front and center when you log on to your brokerage and a meme stock. At least you're investing in a stock.”
  — Rick Wurster [01:06]

• Educational Aspect: Market losses can become instructive for novice investors.

  “You tend to learn at least when a stock you picked drops.”
  — Jessica Ettinger [01:18]

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Notable Quotes & Memorable Moments

• On Early Start:

  “Gen z investors are 46% more likely to invest before they're 21 than the generation before them.”
  — Rick Wurster [00:07]

• On Parental Involvement:

  “They start to show the kid how to invest babysitting and lawn mowing money and watch it grow.”
  — Jessica Ettinger [00:15]

• On Gambling vs. Investing:

  “We don't like anything that conflates investing with gambling... you should look for it to decrease your wealth.”
  — Rick Wurster [00:38]

• On Meme Stock Risks:

  “At least you're investing in a stock.”
  — Rick Wurster [01:06]

• On Learning from Mistakes:

  “You tend to learn at least when a stock you picked drops.”
  — Jessica Ettinger [01:18]

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Important Timestamps

• 00:07 – Surge in young investors and Gen Z stats
• 00:15 – Custodial accounts and early financial literacy
• 00:38 – Differences between gambling apps and investing
• 01:01 – Risks of meme stocks and social media hype
• 01:18 – Educational value of investment losses

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Conclusion

In this succinct but insight-packed episode, Jessica Ettinger and Rick Wurster draw clear lines between prudent investing and risky gambling among a new generation of investors. They emphasize the value of early financial education, mindful platform selection, and learning through both gains and losses. The full interview with Schwab’s CEO is available at CNBC.com.

(Advertisements have been omitted from this summary.)

Transcript

[A]

With ocnbc your Money Minute. I'm Jessica Ettinger. More young people than ever are getting into investing.

[B]

Younger investors Gen z investors are 46% more likely to invest before they're 21 than the generation before them.

[A]

Charles Schwab CEO Rick Wurster on CNBC the Gen Z age range right now is 14 to 29 for kids under 18. Many are helped by parents to set up custodial accounts with a brokerage platform. And they start to show the kid how to invest babysitting and lawn mowing money and watch it grow. To be sure, young people do gravitate to Schwab competitors too. Like Robinhood. We.

[B]

Don'T like anything that conflates investing with gambling. Gambling is a form of entertainment. But you shouldn't look to gambling as a way of growing your wealth. In fact, you should look for it to decrease your wealth. Less than 5% of people that go on gambling apps take out more money than they put in. When you go on an investing app like ours and you stick with it, you grow your wealth over time. And those two things we view as very different. And.

[A]

Here'S Wurster on meme stocks, which can get whipped up on social media and dramatically fall.

[B]

Listen, we want people to get invested, but I draw a distinction between a 10 game parlay that you know is front and center when you log on to your brokerage and a meme stock. At least you're investing in a stock.

[A]

And you tend to learn at least when a stock you picked drops. The whole interview with the Schwab CEO [e-mail] Jesse I'm Jessica Ettinger, CNBC.

[C]

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