Generation Z, the cohort born between the mid-1990s and early 2010s, is already making waves in the world of investing. Unlike their millennial predecessors, who were more cautious and hesitant when it came to investing, Gen Z is diving headfirst into the world of finance at an earlier age.
So why is Gen Z investing earlier than millennials did? There are several key factors at play.
First and foremost, Gen Z grew up in an era of economic uncertainty. They witnessed the Great Recession of 2008 and its aftermath, which left many families struggling financially. This experience has made Gen Z acutely aware of the importance of financial security and stability. As a result, they are more motivated to start investing early in order to build wealth and secure their financial futures.
Additionally, Gen Z has access to a wealth of information and resources that previous generations did not have. The rise of the internet and social media has made it easier than ever for young people to educate themselves about investing and finance. With just a few clicks, they can access a plethora of online resources, blogs, and forums dedicated to helping them learn the ins and outs of investing.
Furthermore, the rise of commission-free trading platforms and robo-advisors has made investing more accessible and affordable for Gen Z. These platforms allow young investors to start investing with as little as a few dollars, making it easy for them to dip their toes into the market without breaking the bank.
Another factor contributing to Gen Z’s early interest in investing is their entrepreneurial spirit. Unlike previous generations who may have been content with traditional career paths, Gen Z is more inclined to start their own businesses and pursue side hustles. This entrepreneurial mindset has made them more open to taking risks and investing in the stock market as a way to grow their wealth.
Overall, Gen Z’s early interest in investing can be attributed to a combination of economic uncertainty, access to information, and a willingness to take risks. By starting to invest at a young age, Gen Z is setting themselves up for long-term financial success and building a solid foundation for their future.