Millennials have had a reputation for being investment-shy, our research shown that lack of capital has been the number one thing holding them back, and between increased savings among employed young people and stimulus checks, interest in investing saw a major spike in 2020. In fact, most Millennials do have the intention of spending their savings on technology related investments such as Crypto Currencies and NFTs. These are the topics that have been trending online while they watch their favorite youtuber speak about their daily lives and gaming.
The influx of cash for young people—and time at home—led to more young people jumping into stocks. By looking at the recent finance and spending behavioral report found that 33% of 13-39-year-olds say they have been more interested in investing in the stock market since COVID-19 started—and that number is even higher, 39%, among 18-24-year-olds. In the midst of the crisis and CNN reported that Millennials trading from home were “moving the market.” Trading app Robinhood, whose median user age is 31-years-old, reported that young investors were “actively hunting for bargains” and buying stocks from industries specifically impacted by the pandemic. Some even called the market boosts “the Robinhood effect”—and that was before the Reddit-GameStop frenzy that occurred thanks to young app-connected investors earlier this year.
In the wake of this trend, financial talk on social media has been trending. The #investing hashtag on TikTok currently has over 2 billion views, and according to a CreditCards.com report, social media is one of the most popular sources where 18-24-year-olds get financial advice—second only to family and friends. On top of that, Gen Z is nearly five times as likely to say they get financial advice and stock tips from social media compared to those 40-years-old or older. A Greenlight survey reported that 38% of teens are turning to YouTube, one-third are looking to TikTok, and one-quarter go to Instagram for personal finance and investing advice.
Particularly Gen Z, and describes themselves as an online community for investors excited to discuss stocks with friends, find new connections, and make trades on the market, all in one place.
Zachdev : “Gen Z is the social generation. With everything they do, they do it alongside friends. Whether that’s discovering new music through Tik Tok, sharing their daily lives through Instagram stories, or streaming on Twitch, all activities come back to that same theme of togetherness. Historically, investments has been a particularly non-social category with many brokerage tools optimizing for privacy, security, and the individual experience. Soon enough, they’ll be making these decisions and discovering investing ideas together. Interestingly enough, it’s on Reddit, YouTube, and even TikTok. What we are seeing is that Gen Z consumers are following creators like Austin Hankwitz who’ve mastered the art of making investment research digestible, engaging, and well-informing, all in 30 seconds. They use Telegram to host their intimate communities where they can create content, engage as a group, and make a living.”
If Generation Z is already adapting the 3 early methods of financial planning, Interest, Initiative and Investing, can you imagine how early this new generation will start planning?