Survey reveals strength of digital investments but also how traditional asset classes remain important
Younger generations are generally painted as innovators, driven by technology, and wanting to carve their own path in the world; but does that ring true with their investment choices?
Of course, the ever-growing range of digital investment options are attractive to digital native generations, but where are the next-gen investors keen to target their investments?
A survey from teen-focused financial empowerment organization Junior Achievement USA and auditing firm RSM, found that 40% of respondents who followed the recent GameStop meme stocks saga, believe they stocks are a good long-term investment.
Around four in ten teens also believe that investing in the stock market is a good way to make money quickly, while around one fifth think it’s too risky.
Almost all said they only know “some” or “not much at all” about the stock market, however most correctly selecting the definition of "stock market" (72%) and "dividend" (62%).
Teens said they get their information about the stock market from social media (43%), parents (35%), websites (30%), and school (29%).
A recent report suggested that financial advisors have an opportunity to steer young people in the right direction with wealth management.
Asked whether the stock market is a good thing, respondents were split in half.
"These results show that the recent 'meme stock' phenomenon could be having an adverse impact on teens' perceptions of what it means to invest in the stock market," said Jack E. Kosakowski, president & CEO of Junior Achievement USA.
Investing a lump sum
If teens were given money to invest, what would they do?
While the stock market (43%) was the top choice, beating cryptocurrency (25%), and real estate (24%), there was a large portion (37%) who would choose not to invest at all.
