Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Why Gen Z Might Be the Best (and Worst) Investors Yet!
Ruby Layram
1st Aug 2025
When it comes to investing, Gen Z is flipping the rulebook on its head. This is the generation that grew up with iPhones in their pockets, crypto headlines in their feeds, and TikTok influencers telling them to “just buy the dip.” But here’s the big question: are Gen Z investors ahead of the game… or heading for a crash?
As a Gen Z investor myself, I’m rooting for us 20-somethings and think that we are in a pretty good position to make smart decisions (just think of the abundance of tools we have at our fingertips!).
In this post, I will delve into why I think that Gen Z are in a position to beat the markets and also take a look at some potential pitfalls that they might face.
Why Gen Z Might Be the Best Investors Yet
Okay, so, here are a few reasons why I (completely unbiased!) think that Gen Z have what it takes to be the best investors…
1. They’re starting young
Time is the most powerful force in investing, and Gen Z knows it. Many are opening investing apps before they’ve even opened a pension account. With decades ahead of them to ride out the ups and downs of the market, this generation has one major advantage: compound growth.
Did you know? If a 22-year-old invests £200/month into an index fund earning 7% annually, they could have over £500,000 by age 60, without ever increasing their contribution.
2. They’re digitally native
Unlike previous generations, Gen Z doesn’t need a financial advisor to get started, they’ve got their phones. With investing apps like eToro, Trading 212, and even crypto wallets, they can invest in minutes. Access to markets has never been easier, and this generation is using that to their advantage.
3. They’re bold and curious
Gen Z isn’t afraid to ask questions, challenge the system, or try new investment styles. Whether it’s ETFs, impact investing, options trading or even NFTs, they’re keen to explore. They want their money to grow, but also to align with their values.
4. They love learning (Sort Of)
Thanks to YouTube, Reddit, and even #FinTok (yep, that’s finance TikTok), Gen Z has more access to investment education than ever before, and much of it free.
They’re more likely to follow money influencers than watch mainstream news.
This means that Gen Z are exposed to investing truths and personal stories, often before they’re even old enough to start! The abundance of information means that they can make informed decisions based on multiple sources rather than trusting one news article!
Why They Might Be the Worst, Too…
As much as I’m rooting for my fellow Gen Z, it’s also important to be aware of potential pitfalls that could stop some eager investors from building long-term wealth.
1. They confuse entertainment with education
The downside of learning from TikTok? Not everything is true. From “get rich quick” schemes to influencers who don’t even invest themselves, Gen Z risks falling into the trap of taking flashy content over solid advice.
Remember: If someone is promising 20% returns overnight, it’s probably a scam.
2. They chase hype, not fundamentals
Pepe coin. Dogecoin. NFTs of pixelated punks. Gen Z has fallen hard for some of the most hyped-up investments in recent history. While these can be fun and exciting, they’re not a solid long-term strategy. Investing isn’t a casino, and volatility isn’t the same as opportunity.
3. They underestimate risk
With high risk comes… well, not always high reward. Some younger investors are overexposed to volatile assets like crypto or tech stocks without any kind of safety net. They might not realise that diversification, patience, and discipline often outperform trending trades in the long run.
4. They don’t always think long-term
It’s tempting to focus on making a quick buck. But real wealth-building takes time. Pension pots? Boring. Diversified ETFs? Meh. But ignoring these now could mean missing out on thousands (if not hundreds of thousands) in the future.
So, What Can Gen Z Do To Get It Right?
I like to think of myself as a pretty knowledgeable Gen Z investor (5+ years of writing finance content will do that for you!).
Here are my top tips for Gen Z investors who want to build long term wealth:
- Start with the basics: Before jumping into crypto or options, build a core portfolio with index funds or diversified ETFs. (Here are the best growth ETFs for 2025)
- Automate your investing: Use direct debits to invest monthly, and take advantage of pound-cost averaging.
- Do your own research: Don’t blindly follow social media trends. If you wouldn’t invest £500 without reading up on it, don’t invest 5p.
- Mix boldness with balance: It’s okay to have a “fun” investing pot, just make sure your future self is also looked after. Try the 80/20 split!
- Use your time advantage: Start early, stay consistent, and let time do the heavy lifting.
Final Thoughts
Gen Z is in a brilliant position to learn a LOT about the market for free! If you follow the right, trusted creators, do your own research and avoid emotional decision making, you could certainly be on your way to long-term wealth!
However, it’s important to understand how to differentiate useful investing advice from social media clickbait and make decisions based on facts and not trends!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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