Are stock market games a good way for teens to learn?

In short: a well-designed stock market game can be a useful, low-risk way for teenagers to learn how prices move, what risk feels like and why diversification matters. A badly designed one can teach gambling habits. The difference lies in the design, the guidance around it and the conversations you have alongside it.

Many teenagers are curious about shares, often because of what they see online. A stock market game, also called a trading simulator, lets them try investing with pretend money. Is it a good idea? In our view, often yes, but with conditions. Here is an honest look at what these games teach, what they leave out, and how to choose a good one. (Full disclosure: we make a learning app with a simulator, so we have an interest in this question. We have tried to be even-handed.)

What a simulator can teach well

• How prices move. Watching a share rise and fall over days and weeks makes it clear that prices are not steady, and that nobody knows what comes next.
• What risk feels like. Seeing a “holding” fall 15% is a safe way to learn that losses happen, and to discuss how you would react.
• Diversification. A teenager who puts everything in one company, then watches it drop, learns the value of spreading money more intelligently than any lecture can teach.
• The vocabulary. Shares, funds, dividends, sectors and indices become familiar, which makes real-world conversations easier later.
• Curiosity about the real world. When a company they follow makes the news, teenagers start asking why. That curiosity is valuable.

What a simulator cannot teach

It helps to be honest with your teenager about the limits.

• The emotions of real money. Watching virtual money fall is very different from watching your own savings fall. Real losses hurt in a way a game cannot reproduce, so a good result in a game does not prove someone would stay calm with their own money.
• The costs. Real investing involves fees, tax and sometimes spreads between buying and selling prices. Many games ignore or simplify these.
• The long view. Many games run for weeks or a school term, while sensible investing is measured in years or decades.
• Luck versus skill. A teenager who “wins” a short competition may have been lucky, and could learn the wrong lesson that they can beat the market.

The biggest risk: learning gambling habits

Some games reward frequent trading, big bets and chasing last week’s winners. That teaches speculation, not investing. Watch for features like leaderboards based purely on short-term returns, countdown timers that pressure quick decisions, loot-box style rewards, and notifications that nudge constant trading.

The better approach rewards good reasoning: explaining why you bought, holding a mix of investments, and learning from outcomes. If your teenager seems to be checking the game compulsively or getting upset about virtual losses, take it as a cue to talk, not to punish.

A checklist for choosing a good one

1. Virtual money only. Check that no real money can be deposited, spent or won. The game should say so clearly.
2. No adverts. Particularly adverts for real brokers, crypto platforms or betting.
3. No chat with strangers. If there is any social feature, find out who can contact your teenager and whether you can switch it off.
4. Learning built in. Look for lessons, explanations and prompts that help your teen understand what happened and why, rather than only a leaderboard.
5. Real prices, or a clear explanation if not. Realistic data makes it more engaging and educational. If prices are made up, the game should say so.
6. Honest claims. Avoid anything promising that you will learn to “beat the market” or “get rich.”
7. Clear privacy and AI disclosure. Check what data is collected, whether an AI helper is used, which companies receive what your teen types, and whether a parent has to consent. A trustworthy app explains this in plain words.
8. Sensible purchases. If there is a subscription, make sure purchases need an adult’s approval and that the price and renewal terms are clear.
9. Suitable for your country. Taxes, accounts and examples differ between the UK and the US. A good app uses ones your teen will actually meet.

How to get more from it: conversations to have

• Before they start: “What do you hope to learn?” and “What would a good result look like?” Steer the answer away from winning and towards understanding.
• After a loss: “What happened? What did you expect? What would you do differently?” This is where the real learning happens.
• After a win: “Was that skill or luck? How would you know?” A good habit to build early.
• Over time: “What would happen if you had kept it for ten years?” This connects the game to compound interest and long-term thinking.

Games versus other ways to learn

A simulator is one tool among several, and it works best alongside others:

• Reading and conversation. Our guide on explaining investing to a teenager gives you a simple order for the key ideas.
• Real-money practice at small scale. Some families open a Junior ISA (UK) or a custodial account (US) and let a teenager take part in choosing investments, with adult oversight. That is a family decision with real consequences, and worth getting advice on.
• Everyday money habits. Budgeting, saving and spending carefully matter more to most people’s finances than picking investments. See pocket money and allowance for ideas.

The verdict

Used thoughtfully, a stock market game is a good way for teenagers to become comfortable with the ideas behind investing, and a safe place to make mistakes. Choose one designed for learning, set expectations about what it can and cannot show, and stay curious alongside your teenager. For a fuller picture of money lessons by age, see teaching your child about money, age by age.

General information for families, not financial, tax or legal advice. Rules, rates and limits change and differ between the UK, the US and elsewhere, so check official sources (such as gov.uk or irs.gov) or speak to a qualified adviser before making decisions with real money. We make InvestiKid, so we have an interest in it; the advice in this guide stands without it.