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In his interview with ZDF, German youth researcher and futurist Simon Schnetzer says that the issue of freedom concerns Generation Z, in his interview with young people between the ages of 18 and 25. You must be able to afford freedom. “Young people are much more interested in financial matters. Retirement planning is a fearful topic because pensions are not perceived as secure. “They become interested in investment styles at a very early age,” Schnetzer says. Outlining the reasons for their interest in financial matters, Schnetzer says it is based on the assumption that if they do not worry early enough, they will not have freedom later.
The fact that the fully digitalized generation is struggling with financial problems surprised the authors of PostFinance & Lucerne University HSLU’s 2022 Investment Report. “The proportion of investors in Generation Z is unexpectedly high,” says study author Andreas Dietrich. He explains this by saying that this generation grew up in a period of strong price increases in the stock markets.
According to the news of the German magazine “Das Investment”, there is only one point where there is no difference between the young generation of investors and the older generation: Here too, men are in the majority, over 60 percent. The reasons may be surprising, especially for Generation Z: It still has to do with role models and gender pay gaps. The investment report also identified this “gender investment gap.”
Young people approach more often
Schnetzer, born in 1979, has been working with young adults for over 12 years and has published studies on them in Germany, Austria and Switzerland. She also worked on the “Young Switzerland 2023 Survey” of marketing agency Jim & Jim. This also reveals that young people are increasingly concerned about their financial situation. They examine the opportunities and risks of investing in investments as well as classic savings options. “Stocks, real estate and cryptocurrencies are very popular and seem to arouse curiosity among the young target group,” the survey states.
Research by payment provider Klarna in 2022 shows that more than 90 percent of Generation Z regularly allocate money, and one in four people under the age of 25 invests their money in this process. They often invest their savings in stocks or exchange-traded funds (ETFs), according to the report. As with all investment products, risks need to be weighed.
Fear of investment mistakes
For Generation Z, the smartphone is a communication and commerce platform. As research shows, he likes to be guided by influencers when it comes to money-related questions. 33 percent use online platforms or social media for investment decisions. Podcasts and YouTube tutorials are also becoming increasingly popular in finance. Besides all these clues, the source should always be questioned critically.
For comparison: More than half of older investors turn to professionals from the financial world. But in Switzerland, a banking country, only half of adults invest.
The survey, conducted as part of the PostFinance investment report, revealed why many people prefer savings accounts to investments: Not enough money, fear of loss, and lack of knowledge about financial markets and investment products are apparently the top reasons why survey respondents do not invest. money. In the survey, one in five people with assets over 100,000 francs said: “My assets are too small to invest in the financial market.” (Read more: Investment myths – this is why only one in two households invest their money.)
At PostFinance you can invest your money in a fund savings plan for as little as 20 francs per month. This type of investment, which has a medium and long-term investment horizon, also offers return opportunities by taking risks into account. Additionally, a gradual investment reduces the risk of entering at an inopportune time. Price fluctuations that may occur in all kinds of investments can be reduced by dividing the investments made using the fund.
Time factor is important
When dealing with money, the time factor, among other things, plays a role. If you want to set aside money to go on a world tour or buy a new car next year, you’re better off opening a savings account.
If you have a longer time horizon, you can examine investment solutions. A longer-term investment horizon is recommended to weather market fluctuations. It is important for potential investors to be interested in a variety of investment options, risks and opportunities.
Use the advice
If you do not want to get involved in online platforms or influencers such as Generation Z, or if you do not want to be actively involved in investment products and markets, you can get professional help from well-established financial professionals.
The PostFinance investment blog offers first insights into the world of investing and a lot of basic information. If you’d rather talk about money than read about the subject, you can get advice in a personal conversation.
Non-binding and free advice can provide a good overview of investment options, answer questions and possibly even dispel skepticism. And before a franc is invested, PostFinance creates an investor profile. Appropriate strategies can be recommended depending on the investment amount and investment horizon. Customers are informed about opportunities and risks and the fees incurred are explained.
It is not yet known whether Generation Z, willing to take risks, is actually smarter about money matters, as investments need to be planned for longer term. The truth is, it’s definitely worth considering your personal finances.
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Source : Blick
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
