Generation Z and millennials choose crypto over stocks — Report

According to a recent study, a larger number of young Americans are now holding cryptocurrencies compared to stocks, suggesting a trend towards different financial assets and approaches to investing that contrast those favored by elders.

A survey conducted from Oct. 16-19, 2021, and released by Policygenius on April 9, 2022, gathered data from 4,063 American adults. The findings showed that a greater proportion of Gen Z (18-26 years old) and millennial (27-42 years old) respondents expressed interest in investing in unconventional assets such as cryptocurrencies and NFTs compared to their older counterparts.

Generation Z and millennials choose crypto over stocks — Report

eighteen percent of Gen Z participants in the survey reportedly held stocks, while the figure was thirty-eight percent for Gen Xers and forty-five percent for Baby Boomers.

Policygenius analyst Myles Ma wrote,

“Younger generations store their wealth differently than their Gen X and boomer counterparts, including novel investments like cryptocurrency. This could show a bigger willingness to take risks with their money, but it could also reflect obstacles they can’t control, like the growing housing shortage.”

Approximately 9% of Gen Z and 8% of millennials indicated they usually look to social media for answers to financial queries, while only 3% of Gen X and 1% of baby boomers reported doing the same.

In simple terms, the survey reveals the financial mindset of young investors, going beyond cryptocurrency. Navigating today’s intricate financial worlds makes these Gen Z and Millennial individuals feel a sense of accomplishment regarding their money management. This attitude underscores the eagerness of younger Americans to enhance their financial literacy and self-reliance.

Previous research indicates that young adults, specifically Gen Z and Millennials, are more likely than other age groups to use cryptocurrencies. A Bitget report published in April 2023 found that approximately half (46%) of millennials from significant economies including the U.S., China, Germany, Japan, Indonesia, and Nigeria, currently hold cryptocurrencies.

Last year in October 2022, a survey conducted by Charles Schwab revealed that around half of Gen Z and millennial respondents expressed interest in having their retirement savings in digital assets. Additionally, the data showed that nearly half (43% for Gen Z and 47% for millennials) of these individuals currently invest in cryptocurrencies apart from their 401(k) retirement plans.

Based on multiple surveys, it appears that younger investors are broadening their investment horizons, moving away from just real estate and standard stocks, and instead, showing a strong interest in cryptocurrencies.

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2024-04-12 02:58