Gen Z may be young, but they’re already moving on with their finances , Especially when it comes to investing.
A new report Shows that more than half of Gen Z Americans have some sort of investment, and most of these investors started putting their money to work before the age of 21.
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what do the figures say
A new report from the Financial Industry Regulatory Authority (FINRA) and the finance non-profit CFA Institute pulls back the veil on the youngest generation of adult investing. This suggests that 56% of American Gen Zers (those who are now roughly 18 to 25 years old) have at least some form of investment, and 82% of these investors started before the age of 21. .
Here are some highlights of the report:
- The average Gen Z investor has lost about $4,000 in investments.
- 25% of Gen Z investors started doing so before the age of 18, and 82% started investing before the age of 21.
- 41% of Generation Z investors say they started because of “fear of missing out,” or FOMO.
- Nearly half of American Gen Z investors said they rely on social media to learn about investing. The most popular ways for these young people to learn about investing include YouTube, web searches (like Google), and Instagram.
The survey shows a fundamental shift in the way young people invest. “The Gen Z population is diverse and digitally savvy,” FINRA President Gerri Walsh said in the press release. “They are using mobile technology to access financial markets in unprecedented numbers and consult a wide range of information sources.”
In fact, the report shows that this is the first time a generation is primarily looking to social media for guidance in their investment choices. Millennials, who comprise the first generation to grow up with social media, and Gen X investors rely on professional advice and corporate resources to make their decisions, according to the report.
What’s more, the advent of “fee-free” trading platforms like Robinhood means that Gen Z investors can do all of their trading from the comfort of their homes, without the need to visit a financial advisor.
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