Wall Street Crashes: Could One Affect Our Generation?

The 2008 Financial Crisis

Most teens would rather spend their time scrolling through TikTok or Instagram than scrolling through stock charts or watching finance news, but what happens on Wall Street impacts us more than we might realize.

In 2008, risky lending, bad mortgages, and failing banks caused the U.S. stock market to crash. Big companies collapsed, and the government had to bail out banks to keep the economy from fully falling apart. The stock market lost trillions of dollars in value, and the economy went into what’s now called the Great Recession.

Many families lost jobs, houses, and savings. Parents who worked in a once steady financial job suddenly got laid off, and some people even had to move because they couldn’t pay their mortgages. Even those who kept their homes often cut back on traveling, shopping, or eating out.

Teenagers at the time weren’t the ones trading stocks on Wall Street, but they felt the impact. Part-time jobs became a lot harder to find, and summer employment wasn’t guaranteed. Even entry-level work for graduates out of college was hard to land.

Could It Happen Again?

Another crash is always possible. The stock market is very volatile and goes up and down all the time. Big drops can happen suddenly, like in 2020 during the early months of COVID-19 or the start of Trump’s 2024 term. If the stock market were to crash today, here’s how it would affect teens:

1. College Costs: If your parents are saving for college tuition in an investment account, a crash could shrink that money very quickly. That might mean more student loans from the bank, starting at a community college during the recession, or delaying your start to college.

2. Job Opportunities: Many high school students rely on part-time jobs to make money and to strengthen their college applications. A stock market crash could lead to stores cutting their hours and stopping the hiring process.

3. Family Stress: When steady wages go down, it could affect life at home, as it becomes hard to afford groceries, sports fees, and other commodities.

4. Mental Pressure: Financial stress doesn’t just impact wallets, but it also impacts emotions. At home, teens may feel the pressure of a crash without knowing the details.

So, Why Should We Care?

Most high schoolers don’t have stock portfolios, but all are connected to the economy somehow. Understanding what happened in 2008 helps us recognize that Wall Street isn’t just businessmen in suits, but rather it’s about families, futures, and opportunities.