According to the recently released ‘Gen Z Investment Report’ by the Royal Mint*, 80% of the members of this generation are already investing in their futures. The actual number is even higher considering that Gen Z spans the population aged between 9 and 24!
Another interesting finding is that most of these investors are stashing away as much as £200 per month.
Another recent survey found that almost half of all teens learn about investing from social media. The specific percentage is 43%. Of these would-be investors, 43% again would invest in the stock market, while a quarter would opt for cryptocurrency.
- Picking The Right Investment Apps
- Alleviating Future Worries
- On That Note…
- It’s Never Too Late To Start Investing
The Editor of curated list Investing Apps for 2022 at Invezz predict young people’s investments will reach almost £10 billion over the next fiscal year.
These findings emphasize the importance of helping young people take their first steps in finance with the right guidance. Choosing the right investment apps is a reasonable first step.
With that in mind, it’s a minefield to explore, with some articles suggesting you may need several apps just to manage portfolios correctly – with wallets, portfolio trackers, stocks, and savings accounts all split between different investment apps.
The report by the Royal Mint also indicated that almost of quarter of Gen Z members set money aside to ease potential financial concerns. Young people are cutting down on everyday costs to help further support their finances. These include travel, drinking, and restaurant visits. Just under 40% reported they were drinking less. 67% said they were traveling less often, and a whopping 88% were eating out less often despite eased pandemic restrictions.
The Royal Mint’s findings indicate that the pandemic transformed young people’s financial perspectives apart from highlighting changing spending habits. Two-fifths of respondents stated that it had given them a newfound appreciation of having secure finances. More than a third said that COVID-19 had compelled them to learn more about investing.
The earlier you start, the more time you have to grow your investment portfolio. Younger people have longer to increase their wealth, and they enjoy compounding returns. It’s never too late to start for anyone who is healthy.
The main difference between younger and older investors lies in the type of preferred investments. The former might prefer to hold a larger number of equities. They can afford to take on more risk as they have more time to overcome any bumps in the stock market. On the other hand, older people would rather hold something less risky, like bonds.
*The Royal Mint is one of the world’s leading mints, producing all the coins of the United Kingdom.
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.