These Kids Under 18 Invested Over $70 Million in 2025. What That Will Mean for Their Housing Prospects Once They Get Older

While their elders might be facing financial insecurity and a slew of economic challenges that can hinder homeownership, in 2025, the kids are all right. 

A new survey by family financial app Greenlight found that kids and teens using the platform invested more than $70 million in 2025, a whopping 65% year-over-year increase. They also “doubled their recurring automated investments and increased their average buy trade to $49.56, up from $39.70 in 2024,” according to the survey.

And unlike older generations, these early investments and changing behavior around financial literacy could help them achieve financial milestones, such as homeownership sooner and more easily.

Jennifer Seitz, Greenlight director of education, said that one of the most significant barriers to homeownership is insufficient savings for a down payment.

“This is especially true now as home prices and mortgage rates continue to soar. As more young people begin saving and investing earlier, we may see a resurgence in homeownership rates when they reach their 20s and 30s. In general, those who start early will benefit from compound growth, allowing their money to grow substantially over time,” Seitz said.

Changing investing behavior

The survey found that 50% of these young investors say they want money to buy a home or a business by age 25 and 67% think they’ll be financially well-off or better off than their parents.

Why? Well, financial apps, social media, and easy access to information are providing this generation with an edge over their older counterparts, which could translate into more effective financial management down the line.

Seitz said that, according to the World Economic Forum, 48% of U.S. adults lack financial literacy, mainly because many don't have access to financial education on core topics.

But that’s changing for this generation, as more banks and financial institutions provide resources and tools.

She added that conversations with Greenlight customers reveal that kids are taking a proactive approach to their finances. They understand not only how to earn and spend money but also feel empowered to manage it based on their own savings goals, she said.

“This awareness helps them build confidence and develop a strategy that works for them. The increase in automated investments is another proof that young people are taking control of their finances to build long-term success,” she added.

This changing behavior is a stark departure from how older generations approached their finances.

Steve Sexton, CEO of Sexton Advisory Group, noted that most millennials didn't start investing until they had access to a 401(k) or extra money, typically in their late 20s or early 30s.

As for Gen Z, Sexton said student debt and high rents remain significant barriers to homeownership, and many in this demographic still rely on family support to cover basics such as housing.

“Will this translate into higher homeownership rates than millennials and Gen Z? That depends on things outside their control, including wages, housing supply, interest rates, and more, but from a behavioral standpoint, they're already ahead,” he said.

The role of emergent youth-oriented investing accounts

There are several financial apps geared for kids and teens, such as Greenlight, which combine a debit card for kids with safety features like location sharing and crash detection to help families build financial literacy and stay connected.

Earlier this year, President Donald Trump announced the launch of “Trump accounts,” a $1,000 contribution that will be “available to every U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028,” according to the announcement.

“Families and others can contribute up to $5,000 annually; the funds will be invested in a broad stock-market index, remain private property under guardian control until age 18, and, if fully funded and left untouched, could grow to as much as $1.9 million by age 28,” the announcement read.

These apps and government initiatives could turbocharge this new generation’s financial goals and help them become homeowners faster.

“Having easy access to investing accounts is a big win for children, as it may help them establish a sound foundation towards accomplishing financial goals,” said Mark Reyes, CFP and founder of Casita Financial Planning.

However, Reyes said there is a caveat: If the basics of financial literacy and investing are not taught and received well, investing without a financial goal or a clear understanding of investment risk may be detrimental to their future economic health.

The power of compounding is worth noting. Here's how it works: A 12-year-old who consistently invests even $50 a month in a low-cost index fund and earns a long-term 7% annualized return could grow it to around $20,000 by age 30, before any extra contributions from gifts, jobs, or youth-oriented investing programs, according to Sexton.

“At $100 a month, you're closer to $40k by age 30, which is enough to be a meaningful down payment in many markets,” Sexton said, adding, however, that this doesn't magically solve today's affordability crisis—especially if you consider the median first-time homebuyer age is now 40 and first-time buyers are down to about 21% of home purchases.

“However, kids who start investing early and keep their debt low will enter adulthood with a head start on a down payment fund, actual experience living through market ups and downs, and better credit habits and budgeting skills,” he added.

What should they do with their savings in the current economic environment

Bobbi Rebell, CFP and consumer finance expert at CardRates.com, said the focus should be on long-term goals and keeping money strategically invested so that, when the time is right, these savers can make intentional choices with their financial resources.

“The most significant accomplishment is that they will have hopefully created a financial muscle memory that will set them up for successful saving and investing for a down payment,” she said. “They will also hopefully be ready with the financial know-how needed not just to be a homebuyer but also a homeowner.”

Rebell added that the true value lies in the behavioral foundations of compounding interest, delayed gratification, and the sense of success when goals are achieved.

“It is about understanding the mindset that leads to successfully reaching goals, including homeownership,” she said.

Greenlight’s Seitz also recommends staying intentional and revisiting your goals often.

For instance, write down your goals, display them somewhere visible, or set reminders to check your progress.

“When you stay emotionally connected to your “why,” it becomes easier to skip short-term impulse purchases and make intentional choices. If more young people start saving and investing their money with the goal of one day owning a home, we could see a return to the American dream, where everyone has the opportunity to establish roots and build lasting wealth,” she added.