financemagnates.com
06 November 2024 13:56, UTC
A recent survey from eToro shows that Gen Z investors are far more likely than older groups to discuss investments with friends and family.
The study, covering 10,000 retail investors across 12 countries, found that 55 percent of Gen Z respondents aged 18 to 27 spoke about their portfolios with friends, and 44 percent shared their investment activities with relatives.
Among baby boomers aged 60 to 78, only 29 percent had such discussions with friends, and 22 percent with family.
This trend extends beyond family circles. Gen Z respondents are more likely than boomers to compare investment strategies with strangers, at 10 percent compared to 4 percent, and colleagues, at 32 percent compared to 15 percent.
However, they are less inclined to share investment details with romantic partners, possibly due to different relationship statuses.
Gen Z investors also dedicate more time to research. They spend an average of 3.7 hours weekly analysing company data and watching investment-related content.
“The latest crop of retail investors are rewriting the script, with many embracing the opportunity to share their investment ideas with friends and their wider circle as they look to harness the wisdom of the crowd,” commenting on the data, eToro Analyst Sam North, said.
“In the same way that Gen Zs have turned other ‘taboo’ subjects, such as mental health, into dinner table chat, investments and money have become normal topics of conversation amongst this age group.”
They are also more likely than other age groups to engage in structured learning, with 30 percent having taken an investment course and 45 percent studying strategies from prominent investors.
Their motivations diverge from older generations, with 44 percent of Gen Z aiming for financial independence compared to 33 percent of the average, and only 18 percent focused on retirement planning compared to 36 percent of older groups.
The survey, conducted by Opinium from August 16 to September 2, 2024, classified retail investors as self-directed or advised, each holding at least one investment product.
North adds: “The youngest generation of investors are old enough to have witnessed the impact of economic downturns but young enough to have grown up in a digital age where information is just a click away. Gen Z understands the importance of being financially savvy and are making the most of the tools available.”
