Gen Z invests earlier than other generations

The Future. As Gen Z ages, their income is growing quickly, set to surpass millennials’ aggregate annual income by 2031. But Gen Z isn’t frivolously spending that money — they’re setting themselves up for the future more than any generation to date.

Money on their mind
Gen Z is more financially literate than their parents — mostly for the better.

• According to a survey by the CFA Institute, more than half of Gen Z respondents are already investing, and 82% began before turning 21 — much more than millennials and Gen Xers.
• The reason is access to financial instruments and advice, which have proliferated especially via social media. 64% of surveyed Gen Z investors say they rely on apps, significantly more than older generations.
• The obvious downside to this trend is many Gen Zers have invested their money in unproven instruments like crypto, meme stocks, and outright scams, with nearly two-thirds saying they fell victim to a get-rich-quick scheme.

Still, most Gen Zers are developing financial literacy earlier than their parents, often with the goal of saving for retirement or preparing for the economic uncertainty that plagued their childhood. To make this happen, they’re even fleeing cities for low home prices.

While fewer workers believe they can afford to retire, Gen Z might just manage to do it.