How is Gen Z Investing?


Generation Z (or simply Gen Z) is the demographic cohort succeeding Millennials and preceding Generation Alpha. Researchers and popular media use the mid-to-late 1990s as starting birth years and the early 2010s as ending birth years. So why is it important to understand this generation's investing trends? The Gen Z Generation forms a large part of the population and therefore it is important to understand their financial psychology. Their perception and expectation of different experiences paves the way for demand for these products. 




Timing is another important reason for focusing on this generation. In times of rapid change in technology and business environments, the priorities and set of expectations of Gen Z are therefore vastly different from the previous generations.

Gen Z, now approaching and entering its early 20s, is forming its own set of priorities and features, different in some instances from those of its millennial counterparts, although in nuanced ways. Here is what seems to be Gen Z's most important money priorities so far, as well as the resulting trends that should be considered by the financial services industry as it evolves to meet the demands of this up-and-coming generation:

1. Investment decisions driven by social media

Gen Z want to do their own research while investing in stocks and not rely entirely on financial advisers. However, from newspapers and journals to social media, the tools for research have evolved. Gen Z often rely on family and friends' reviews.

Through social networking platforms, such reviews and opinions rapidly find their way. In addition, influencers such as financial experts and mentors also serve as a key source of information.

2. Socially conscious investors.

When it comes to investing, Gen Z appear to be well educated and mindful of the choices they make. They not only look at returns, but also at the essence of the businesses in which they invest. 

They favour smart energy technology, clean tech firms, businesses that solve social issues such as poverty eradication, gender biases, etc.

3. Gen Z has a ‘debt-centred’ approach to its finances.

Having learned from the millennials’ experiences, Gen Z may be better prepared to handle many of the same challenges. For example, both generations have experienced an inflation in the costs of education, housing and personal expenses, making debt almost unavoidable. In turn, members of Gen Z are likely to be more proactive in addressing their debt, creating a real need for expert advice focused on debt management.

4. Gen Z makes informed investment decisions.

It has become easy to compare between products, services, companies etc. with the advent and access to technology. In the interest of the end customer, the fundamental business models have changed drastically. As a generation, Gen Z’s challenges are larger and more complex than previous generations, and they may not, at least not yet, feel well-served by algorithms as such. Education, patience, and an understanding of their individual circumstances are what they really need, along with a desire to help them achieve their objectives despite the many challenges they face.



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