Israeli Children as Young as 7 Begin Investing in Stock Market

Children in Israel are increasingly entering the world of stock market investing at remarkably young ages, with some starting as early as seven. Yotam Raz, from Moshav Beit Yitzhak, began his investment journey during the COVID-19 lockdowns at age 7, initially earning money by making and selling natural soaps. With guidance from his uncle, who works in finance, Yotam learned about investing and now, at 11, manages his own stock portfolio. His mother, Tal Izikowitz Raz, notes that Yotam actively reads financial news and makes his own investment decisions, albeit with a focus on low-risk strategies. She observes that while his interest is fascinating, she sometimes wishes he were less preoccupied with financial matters.

Amit Lewis, from Mazkeret Batya, started investing at 12 after seeing a TV program about the stock market. With his mother's help, he opened a trading account and began investing money received for birthdays and holidays. Amit researches various indices and makes his own investment choices, even managing investments for his grandmother. His mother, Tal Lewis, a pharmaceutical professional, explains that Amit's interest in finance stems from his desire to achieve specific goals, like attending a Barcelona soccer match or buying a red Ferrari.

Experts emphasize the importance of parental guidance in such endeavors. Osnat Gerati, a child and adolescent clinical psychologist, stresses that children should not bear the sole responsibility for investments. She advises that parents should be actively involved, providing support and framing the experience as a learning opportunity rather than solely a path to profit. Gerati highlights that while children can learn valuable skills like delayed gratification and long-term planning, their immediate focus can make market downturns particularly challenging. Parents need to help children separate investment losses from their self-worth and maintain perspective.

In Haifa, the Baral family has also embraced financial education. Father Omer Baral, a software engineer, initiated investment discussions with his 11-year-old son, Leo, believing traditional financial education is insufficient. They focus on broad index funds, like the S&P 500, as a safer approach than speculating on individual stocks. Leo has also made specific investment choices based on gaming companies he knows, like Microsoft and Roblox. The family views investing as a shared adventure that teaches financial literacy, responsibility, and the ability to cope with market fluctuations.