🏦2008
Lehman Brothers collapse
Lehman Brothers, a 158-year-old investment bank, filed for bankruptcy with $600+ billion in debt. Risky mortgage investments and too much borrowed money made the firm fragile when housing prices fell.
What teens can learn
Leverage (borrowing to invest) magnifies gains and losses. Diversification and understanding what you own matter — hype and complexity hide risk.
Related lessons: 5-5, 6-12, 5-4
📉2001
Enron accounting fraud
Enron hid billions in debt and inflated profits with shady accounting. When the truth came out, the stock went from ~$90 to pennies. Employees lost retirement savings tied to company stock.
What teens can learn
If returns look too good and the business model is confusing, ask questions. Don't put all your eggs — or your whole 401(k) — in one company.
Related lessons: 6-12, 8-3, 5-2
🎭2008 (exposed)
Bernie Madoff Ponzi scheme
Madoff paid old investors with new investors' money for decades, faking steady returns. An estimated $65 billion in paper wealth vanished. Victims included charities, celebrities, and retirees.
What teens can learn
Guaranteed high returns with no clear strategy is a red flag. Verify where money goes and who regulates the investment.
Related lessons: 3-4, 3-18, 6-5
FTX was a popular crypto platform until customer funds were allegedly used for risky bets at a sister company. Billions in customer deposits could not be returned. Founders faced criminal charges.
What teens can learn
Not your keys, not your coins — and not every app with a celebrity ad is safe. If you can't explain how a platform makes money, be skeptical.
Related lessons: 3-16, 6-12, 5-4
WeWork raised billions on a story of changing how people work, but burned cash fast and had messy governance. Its planned IPO was pulled after investors questioned the valuation and CEO behavior.
What teens can learn
A cool brand and fast growth don't equal a solid business. Look at cash flow, leadership, and whether the math actually works.
Related lessons: 6-13, 5-2, 8-5
🐶2000
Pets.com & dot-com bust
Pets.com spent heavily on Super Bowl ads and rapid expansion but lost money on every sale. When funding dried up after the dot-com crash, the company shut down within months of going public.
What teens can learn
Growth without profit is a timer, not a strategy. During bubbles, story beats substance until it doesn't.
Related lessons: 5-5, 5-4, 3-11
GameStop's stock surged hundreds of percent in days driven by social media hype and short squeezes, then crashed. Many late buyers lost money; some brokers restricted trading mid-volatility.
What teens can learn
FOMO trading is gambling dressed as investing. If everyone on an app is yelling "to the moon," the risk is already extreme.
Related lessons: 5-5, 5-1, 3-11
🏠2006–2008
Subprime mortgage crisis
Lenders gave mortgages to borrowers who couldn't afford payments, often with confusing terms. When defaults spiked, housing prices fell and the financial system seized up worldwide.
What teens can learn
Read loan terms. "Low payment now" often means a bigger bill later. Your first apartment or car loan deserves the same scrutiny.
Related lessons: 3-5, 6-4, 6-9, 6-12
🧪2015–2018 (exposed)
Theranos fraud
Theranos claimed revolutionary blood tests but faked results and misled investors. The company was worth billions on paper before collapsing. The CEO was convicted of fraud.
What teens can learn
Charisma and press coverage aren't due diligence. Ask for proof, regulators, and independent verification — especially with your money.
Related lessons: 6-12, 6-5, 3-4
💳Ongoing
Minimum-payment trap (pattern)
Millions of Americans carry credit card balances for years, paying mostly interest while the principal barely moves. Marketing emphasizes rewards while hiding APRs that can exceed 25%.
What teens can learn
Minimum payments are designed to keep you paying for years. Treat credit cards like short-term tools, not extra income.
Related lessons: 6-8, 3-5, 2-1
🎓Ongoing
Student debt without a plan
Many borrowers took large loans without understanding monthly payments, interest accrual, or expected salary in their field. Total U.S. student debt passed $1.7 trillion, affecting life choices for decades.
What teens can learn
Borrow only what your future income can reasonably support. Compare net price, major, and payment estimates before signing.
Related lessons: 6-3, 3-10
⚠️Ongoing
Predatory payday lending
Storefront and online lenders offer quick cash with fees that annualize to triple-digit interest rates. Borrowers often roll loans over repeatedly, paying far more than they borrowed.
What teens can learn
Fast cash with fine print is a trap, not a lifeline. Build an emergency fund and know community resources before you're desperate.
Related lessons: 6-12, 2-5, 6-5