Gen Z: Stepping into Financial Freedom
 |
| Gen Z: Stepping into Financial Freedom |
Investopedia surveyed General Z, his finances as a study of contradictions.
Facts verified by VIKKI VELASQUEZ.
A young woman with an iPhone is thinking about money.
Investment Encyclopedia / Alison Zenkota
According to the 2022 Investopedia Financial Literacy Survey, Gen Z adults between the ages of 18 and 25 are more financially sophisticated than any previous generation. But they also have the most to learn.
More than half of Gen Z adults have already made investments — 26 percent of this group have invested in the stock market — but only a quarter feel they are doing well in the stock market. Find out how it works for friends. Of all financial concepts, they have the most confidence in spending and saving.
Main technical channel
While 54% of Gen Zers have some form of investing, only a third (31%) think they can tell a friend how the stock market works.
In our survey, one in four Gen Z owns cryptocurrencies and stocks, and one in 10 owns their own NFTs.
While General Z is most confident about using and saving, about a third believe they have the basics of financial management, such as paying taxes and managing debt/debt management.
Gen Zers earning more than $50,000 (57%) are more likely to be more confident in their financial knowledge than those earning less than $50,000 (39%).
44% of generals who don't invest say it's because they don't know where to start.
Subscribe now: Apple Podcasts / Spotify / Google Podcasts / PlayerFM
As Zakaria Schaefer, a 23-year-old financial advisor whose firm Ascent Personal Finance advises corrupt millennials and Gen Z investors, says: “They know a lot about finance. But they don’t know much. Esoteric s things." "
Take Megan Renzo, for example. Siana, a 20-year-old college sophomore studying for a degree in finance, uses a smartphone app to keep tabs on her spending and savings. Through her finance courses, she has learned how to value stocks, and she has a strong sense of investing, but still feels that being financially inactive at the moment is very complicated and risky
In short, the finances of General Zeres over the age of 18 is a conflicting study.
Find their financial foundation
It takes a very self-aware generation to know what they don't know. Gen Z members who took part in the 2022 Investopedia Financial Literacy Survey believe they are just beginning their journey to financial freedom. The survey surveyed 4,000 U.S. adults through an online questionnaire.
For example, only 46% of Gen Zers are confident in their financial literacy, lower than the percentages of Baby Boomers, Gen Xers and Millennials who say so. One reason for this may be that in 2022, there are many places where people use information; in addition to traditional news articles, consider YouTube, podcasts, and TikTok.
"With so much information available, it's hard to know what to look for," Renzo said.
However, General Z does not lack confidence when it comes to spending and saving. 45% of respondents claimed to have advanced spending knowledge, while 42% felt the same about saving.
Schaefer noted that General Z's (especially his clients') enthusiastic spending and saving habits can be attributed to his parents' struggles with mortgages, credit cards and other debts. Schaefer said some customers are feeling increasing pressure to save on their own student loan debt.
However, one area where General Z is struggling is understanding credit and debt management. According to Investopedia's findings, less than a third of Gen Z respondents believe they have only basic knowledge of credit and debt management.
all investments
Jack Rosenthal first got his hands on investing when he was 8 years old when his grandfather compiled a portfolio for him. In high school, he started Young Investors Club, LLC - a fund for young people investing in the stock market, which now has about 100 members and has over $100,000 in assets under management. She is also the author of several books, each one a way for young people to invest. He is 19 years old.
Rosenthal was the pinnacle of General Z's investment enthusiasm. According to a survey by Investopedia, 54% of Gen Z own some form of investment, from mutual funds and exchange-traded funds (ETFs) to cryptocurrencies and non-flammable tokens (NFTs).