As the oldest members of gen Z are currently growing into independent adults, their engagement in ‘adult’ activities – like investing – becomes increasingly visible. A survey by GOBankingRates shows that two thirds of American Gen Z’ers aged 18 through 24 invest (part of) their money. Most of them feel that financial literacy is the key to independence. 80% is likely to seek financial advice before putting money down. The most popular source for such financial education is social media. These findings are very well in line with our trends on Gen Z. This generation generally has a ‘make it happen’ mentality, and sees the importance of being self-reliant while using technological savviness as their asset.
Where does Gen Z invest in?
Gen Z is claimed to be the most environmentally aware generation. This is reflected in the fact that they’re increasingly leaning towards sustainable career paths, or in their investing behavior, as 83% of Gen Z investors have the intention to hold a sustainable investment portfolio. Roughly the same number also applies to millennials by the way.
Differences between Gen Z and millennials
Where millennials and Gen Z investors differ, is the kind of investments they do. A Motley Fool survey revealed that Gen Z was more likely to invest in modern assets like marijuana stocks and cryptocurrencies. Millennials were most likely to engage in more traditional forms of investments like mutual funds or energy stocks, although crypto was also popular among millennials.
Another difference in investing behavior between Gen Z’ers and their preceding generation is seen in the duration they intend to invest. Half of Gen Z investors only intend to invest for up to five years in order to make a big chunk of money quickly. Millennials seem to be more future orientated. Almost a third of all millennials are investing towards life milestones, such as buying a house.
Gen Z’ers are well on their way of becoming independent adults, which is shown by their high engagement in investing. However, signs of juvenility are still shown in this new generation of investors with their ‘get rich quick’ mentality. As a brand, providing this ‘make it happen’ generation with information on making the right investment decisions can teach them to become sensible investors and build a stable financial future.