FINRA Foundation Surveys Gen Z Investors

The FINRA Investor Education Foundation reported that 56 percent of the Gen Z population in the U.S. (ages 18 to 25) invest, with 19 percent owning cryptocurrency and/or non-fungible tokens.

The survey results show that Gen Z investors are attracted by "opportunities to invest small amounts of money through investing apps and fractional shares; the popularity of and access to new ways to invest, like cryptocurrency; and easy and near-constant access to social media sources of information." The Foundation distinguished these investors from their predecessors, finding that Gen Z investors "are more reliant on social media and family for financial information, while millennials and Gen X investors are more likely to leverage financial companies and professionals." The Foundation found that Gen Z investors "are risk-takers, with almost half (46 percent) willing to take substantial or above-average financial risks." The Foundation said that Gen Z investors were also motivated by "the fear of missing out ('FOMO')" and the substantial influence and assistance from parents and other family members.

The Foundation noted the importance of financial education, identifying barriers to Gen Z investing which include (i) not having enough savings, (ii) living paycheck-to-paycheck and (iii) a lack of knowledge on how to invest.