Anika Jindal
Wealth of Geeks
Wealth of Geeks
Millennials are more likely to invest in stocks — especially technology companies — than any other generation. They also favor cryptocurrencies. A Motley Fool study finds they’re nearly twice as likely to own bitcoins than Gen Z and Gen X and five times as likely to invest in the blockchain than baby boomers.
Many millennials entered the workforce saddled with student loan debt, with years of high inflation ahead. An inhospitable housing market caused many to delay their first home purchase indefinitely. But they do put their money in an area they understand. They invest in the one sector that’s been with them through it all — technology.
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Millennials were the first true techie generation
Millennials saw the birth of the Internet, the dot-com bubble, and the rise of huge technology companies such as Facebook, Google, and Apple. Compared with the turbulent times of the late 1990s, the stability of these technology giants gives them the confidence to invest their dollars into the companies whose products they use daily.
The generation whose parents told them to stop wasting their time playing on their computers is now putting their money where their mouth is.
Millennials invest in companies more than any other generation. 55% of their investments are in stocks, compared to Gen X’s 39%. The stocks bought by millennials are overwhelmingly in the tech sector. Only Gen Z has a similar slant, as Gen X and baby boomers choose a balanced portfolio with a more equal representation of the financial, tech, and energy sectors.
It’s no secret that millennials struggle to buy homes. High-interest rates make mortgages too expensive, even without debt from credit cards or payday loans. Not to mention the current low supply of family homes. Money that previous generations invested in their homes is finding other avenues in the hands of this generation.
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Technology drives investment, too
For millennials, technology isn’t only the destination for their investment dollars; it’s also the inspiration for them. Finance-related social media channels and investment-sphere influencers take the place of Charles Schwab. These new leaders encourage followers to make intelligent financial choices.
Millennials pay attention, perhaps not even aware of the irony of using online investment platforms such as Charles Schwab and Robinhood. 26% of millennials report making daily trades on these platforms, compared to only 3% of their baby boomer grandparents.
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Are millennials big spenders?
Although millennials aren’t buying houses as early as previous generations, they aren’t broke. Many have more money to spend due to delaying having children and buying property.
They aren’t investing all of it. Some experts say that millennials are now entering the “splurge era,” spending more money on creature comforts, high-end goods, and products made to last. They’re opting for more durable pieces rather than automatically heading into Ikea and driving past Dollar General to find something more chic.
Alex Caspero, millennial and chef at Delish Knowledge, agrees, “Like other millennials I know, I now splurge on experiences, especially when it comes to travel, concert tickets, and dining experiences.”
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Are Gen Z following suit?
Gen Z is quickly becoming the next generation of smart investors. These young investors decide where to put their money for the best return, but not in the same places as millennials, Gen X, or baby boomers.
Gen Z is half as likely to invest in crypto as millennials. Despite being of their era, younger investors see crypto as too risky. Retirement investing, such as IRAs and 401ks, is less attractive to newer generations of investors, too. But then, retirement seems a long way off in their 20s.
While Gen Z may be more cautious with their money than millennials, that’s understandable, as they often work multiple jobs to earn it. Freelancing among Gen Z is commonplace, with many working multiple side gigs and finding extra jobs to supplement their incomes.
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Thinking about your financial future?
Professional guidance is essential when starting to make investments. A mix of financial products such as index funds, bonds, and stocks is advisable to spread risk. But find the level of risk that suits you.
Seven out of ten millennials think a high-performing stock portfolio should consist of no more than ten companies, though many experts advise even more to spread risk.
Predicting the financial markets will quickly make a fool out of anyone. Still, as Gen Z grows older, it seems likely they will follow in the footsteps of their millennial counterparts and continue to invest in the tech companies they use daily.
Many millennials entered the workforce saddled with student loan debt, with years of high inflation ahead. An inhospitable housing market caused many to delay their first home purchase indefinitely. But they do put their money in an area they understand. They invest in the one sector that’s been with them through it all — technology.
—————
Millennials were the first true techie generation
Millennials saw the birth of the Internet, the dot-com bubble, and the rise of huge technology companies such as Facebook, Google, and Apple. Compared with the turbulent times of the late 1990s, the stability of these technology giants gives them the confidence to invest their dollars into the companies whose products they use daily.
The generation whose parents told them to stop wasting their time playing on their computers is now putting their money where their mouth is.
Millennials invest in companies more than any other generation. 55% of their investments are in stocks, compared to Gen X’s 39%. The stocks bought by millennials are overwhelmingly in the tech sector. Only Gen Z has a similar slant, as Gen X and baby boomers choose a balanced portfolio with a more equal representation of the financial, tech, and energy sectors.
It’s no secret that millennials struggle to buy homes. High-interest rates make mortgages too expensive, even without debt from credit cards or payday loans. Not to mention the current low supply of family homes. Money that previous generations invested in their homes is finding other avenues in the hands of this generation.
—————
Technology drives investment, too
For millennials, technology isn’t only the destination for their investment dollars; it’s also the inspiration for them. Finance-related social media channels and investment-sphere influencers take the place of Charles Schwab. These new leaders encourage followers to make intelligent financial choices.
Millennials pay attention, perhaps not even aware of the irony of using online investment platforms such as Charles Schwab and Robinhood. 26% of millennials report making daily trades on these platforms, compared to only 3% of their baby boomer grandparents.
—————
Are millennials big spenders?
Although millennials aren’t buying houses as early as previous generations, they aren’t broke. Many have more money to spend due to delaying having children and buying property.
They aren’t investing all of it. Some experts say that millennials are now entering the “splurge era,” spending more money on creature comforts, high-end goods, and products made to last. They’re opting for more durable pieces rather than automatically heading into Ikea and driving past Dollar General to find something more chic.
Alex Caspero, millennial and chef at Delish Knowledge, agrees, “Like other millennials I know, I now splurge on experiences, especially when it comes to travel, concert tickets, and dining experiences.”
—————
Are Gen Z following suit?
Gen Z is quickly becoming the next generation of smart investors. These young investors decide where to put their money for the best return, but not in the same places as millennials, Gen X, or baby boomers.
Gen Z is half as likely to invest in crypto as millennials. Despite being of their era, younger investors see crypto as too risky. Retirement investing, such as IRAs and 401ks, is less attractive to newer generations of investors, too. But then, retirement seems a long way off in their 20s.
While Gen Z may be more cautious with their money than millennials, that’s understandable, as they often work multiple jobs to earn it. Freelancing among Gen Z is commonplace, with many working multiple side gigs and finding extra jobs to supplement their incomes.
—————
Thinking about your financial future?
Professional guidance is essential when starting to make investments. A mix of financial products such as index funds, bonds, and stocks is advisable to spread risk. But find the level of risk that suits you.
Seven out of ten millennials think a high-performing stock portfolio should consist of no more than ten companies, though many experts advise even more to spread risk.
Predicting the financial markets will quickly make a fool out of anyone. Still, as Gen Z grows older, it seems likely they will follow in the footsteps of their millennial counterparts and continue to invest in the tech companies they use daily.
