Gen Z are turning investing into casual discussions, according to a report from eToro. The research study noted that younger investors are far more open to talking about portfolios with friends and family.
The eToro research report revealed that Gen Z investors are “twice as likely” as baby boomers to discuss investment portfolios with family (59% vs 29%).
According to the eToro report, a new wave of Gen Z retail investors are turning financial markets into a discussion topic, with this age group far more likely to talk about their portfolios with friends and family, according to data from the latest Retail Investor Beat from trading and investing platform eToro.
In the study of 1,000 retail investors across the United States, 52% of Gen Z respondents (aged 18-27) said they had discussed their investments “with their friends, with 59% having broached the topic with relatives.”
This willingness to talk about investing “decreases dramatically with age.”
For example, just “33% of baby boomers (aged 60-78) have discussed it with friends and only 29% have talked about investing with family.”
Gen Z’s openness when it comes to investing does “not stop at friends and family, with this group more than twice as likely as boomers to have compared investment notes with colleagues (28% vs 14%) and even strangers (9% vs 3%).”
The only area where the trend is “reversed is when it comes to romantic partners, possibly due to a greater proportion of Gen Z respondents being single.”
eToro Analyst Bret Kenwell, said that topics like money were once considered “taboo, however, today many younger investors feel comfortable breaking these social norms.”
In a world that is increasingly more social, younger investors are more open and willing to “collaborate, discuss, and share investment ideas — even as older generations remain guarded about money.”
They added that being “more open with these discussions helps educate investors, may open their minds to alternative investment ideas and concepts, and can help shorten the learning curve.”
Gen Z is the most dedicated when it “comes to conducting independent investment research.”
The eToro report also noted that age group spends an “average of 3.9 hours per week analyzing company performance or watching relevant videos, an hour more than other age groups.”
They are also considerably more “likely than the average to have taken an investment course (43% vs 23%), studied strategies of well-known investors (44% vs 36%), read books on investing (40% vs 37%) and paid for investing tools and resources (29% vs 22%).”
In general, the primary motivators “for American retail investors to invest is to provide long-term security (54%), to achieve financial independence (40%), and to supplement income (35%).”
The difference in proactivity levels between Gen Z and older investors could be partly explained by their “differing investing motivations, with this Gen Z group scoring above the average as they look to outperform their savings accounts (28% vs 20%) through investing, a goal that will require impressive returns, and less concerned with funding their retirement (17% vs 35%).”
Kenwell adds that with so much power at their fingertips — and amid the challenging costs of living — young investors are “more motivated than ever to build their wealth.”
These investors have grown up in an era where “making an investment is just a few swipes or taps away.”
Similarly, investment education and discussions with peers are “more accessible than ever via video, podcasts, articles, and more short form content.”
They know what to look for and have the “necessary tools at their disposal to build wealth.”
About this report
The Retail Investor Beat was based on a survey of 10,000 retail investors across 12 countries and 3 continents.
These countries had 1,000 respondents: UK, US, Germany, France, Australia, Italy and Spain.
These countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey released by eToro was reported conducted from 16 August – 2 September 2024 and carried out by research company Opinium.
Retail investors were defined as “self-directed or advised” and had to hold at least one investment product including “shares, bonds, funds, investment ISAs or equivalent.”
They did not need to be eToro users.
