From Boomers to Gen Z: A Shift in Investing Styles

According to Shepherds Friendly, 61% of Brits make investments, which is a huge percentage. But who’s investing and why? This article will cover the differences between how Gen Z and Baby Boomers invest and the reasons behind this – guest post from Holly Dodd

Who Are Gen Z and Baby Boomers?

People in Gen Z are between 13 and 28 years old and were born between 1997 and 2012 (although they can’t make investments until they’re 18).

Baby Boomers are between the ages of 57 and 75 and were born between 1946 and 1964. You may think investment patterns between the two generations are similar, but there are differences.

Why Are They Investing?

These two generations have varying views on money and the world, which play a big part in money-associated areas of their life.

Gen Z

This generation is just beginning their investment journey, and some investors can be as young as 18. They may be willing to experiment and learn about newer ways of investing, like crypto. According to data from Research In Finance, 33% of millennial investors and 31% of Gen Z investors hold cryptocurrency, compared to only 4% of Baby Boomers. Young people love investing in crypto for many reasons, such as the fact that you can invest very little or a lot into it. There’s a tonne about it across social media and the internet, making information accessible for a generation who are very tech engaged. The rise of investor-friendly apps like Robinhood and eToro also makes investing more accessible to young people who are big phone users.

Because people from Gen Z are young, they’re passionate about their future and what’s next. Investing from a young age means they can be prepared and attempt to achieve financial freedom. Thinking about their future also means considering the world around them, and many young people are drawn towards ESG investments. These incorporate social, environmental and governance factors, which are appealing to young people who care about looking after the world around them.

Baby Boomers

People in this generation are nearing retirement age and are typically wealthier than Gen Z. They’re searching for stability and usually have less interest in experimenting with new ways of investing. They may be less familiar with technology, so traditional ways of investing like real estate, stocks and bonds are more appealing. They’re more cautious and don’t want to encounter financial risks. They’re often passionate about their relatives’ futures and making sure they have something to pass down to their children and grandchildren.

How Do They Get Their Information About Investing?

How they learn and come across information about investing also says a lot about what they decide to invest in. If you’re reading this and you’re a Gen Z or Millennial, you may have learnt about investing through social media. Research shows that in the UK, 98% of Gen Z have social media, and this number decreases with age. As people scroll through platforms like TikTok, Instagram and X, they may come across posts from other people who have made investments. If this interests them, then they can research further, and they’ll quickly find themselves going down a rabbit hole of information.

Baby Boomers, on the other hand, are more likely to get information about investing through other means, such as financial advisors and print media. These are helpful ways to get information, but people have to go out of their way to get the advice they need. When scrolling through social media, information about investing can appear on a person’s page without them having to search for it.

So Which Generation Invests More? A study by Tickmill showed that 43% of UK investors are under the age of 30, which is a huge number. Maybe this is because of the factors covered in this article. Young people want to save for the future, they’re big users of technology and social media, and they like to experiment with newer ways of investing. It’s important to understand the minds of young investors so we can help them save for the future.