Generation Z is rewriting the rules of investing. Out are the days of waiting until your 30s to start investing or relying solely on traditional stocks and bonds. In are teenagers wielding investing apps, cryptocurrency traders barely out of high school, and social media-savvy Gen Zers who began building their portfolios at an average age of 19.
Born from 1997 to 2012, Gen Z entered the financial world earlier than their predecessors. They are 45% more likely to start investing by age 21 than millennials were. But it’s not just their early start that is shaking things up. Below are four unexpected ways Gen Z is transforming investing.
Key Takeaways
- Gen Z is starting to invest at a young age, with an average starting age of 19.
- Cryptocurrency has become a cornerstone of Gen Z’s investment portfolios, with 55% of U.S. Gen Z investors holding crypto assets.
- Gen Z’s investment strategies are heavily shaped by technology, with many using mobile apps and robo-advisors to manage their portfolios.
Investing at a Young Age
More than half (56%) of U.S. Gen Zers, aged 18 to 25, own at least some investments, according to a 2022 survey conducted by the FINRA Investor Education Foundation and CFA Institute. And they’re getting an earlier start with investing compared to previous generations. Gen Z started investing at age 19 on average, compared to age 25 for millennials, age 32 for Gen X, and age 35 for baby boomers, according to a 2024 survey by Charles Schwab.
This early start could have a substantial impact on long-term wealth accumulation. For example, an investor who begins setting aside $5,000 annually at age 19 could accumulate over $1.5 million by age 65, assuming a 7% average annual return. This is about $500,000 more than someone starting at age 25 despite only contributing $30,000 more overall.
Getting Financial Advice from Social Media
Gen Z investors primarily turn to social media and internet searches to learn about investing and finances. They rely more on social media and family as sources of information than millennial and Gen X investors do. They are also more likely than millennials and Gen X to get information from influencers and financial apps.
On the other hand, millennials and Gen X investors rely more on internet searches, financial companies, and financial professionals for information than Gen Z investors do.
Starting with Crypto
The rise of cryptocurrency may have motivated many U.S. Gen Z investors to begin investing, with 44% saying they started by investing in crypto and 32% saying they started by investing in individual stocks, according to the FINRA Investor Education Foundation survey.
Crypto remains the most popular asset class among U.S. Gen Z investors, with 55% owning some form of crypto, followed by 41% who own individual stocks, and 35% who invest in mutual funds. Crypto is also the most popular investment among millennials, while Gen X favors mutual funds and individual stocks.
Gen Z investors reported a median of $1,000 invested in cryptocurrency, accounting for a fourth of their median overall investment of $4,000.
Experts have long cautioned that cryptocurrency is a highly speculative, relatively new technology that is subject to significant volatility. It’s important to understand the risks before investing.
Looking Ahead
By 2050, today’s teenage crypto traders and app-based investors should be in their peak earning years, potentially creating an investment landscape where AI-powered social platforms replace traditional brokers and digital assets are as common as stocks and bonds.
Small-Scale, App-Based Investing
The majority (65%) of Gen Z investors use investing apps to manage their money and make trades. The FINRA Investor Education Foundation survey found that Gen Zers are much more likely to use investing apps compared to millennials or Gen X investors.
Gen Z investors often start with small amounts of money, leveraging micro-investing apps that offer fractional shares and lower costs.
A majority (67%) of U.S. Gen Z investors say that the ability to start investing with small amounts was a major factor in their decision to invest.
Gaining Wealth
Younger Americans have experienced significant wealth growth in recent years. From the end of 2019 to the end of 2023, inflation-adjusted wealth for households under 40 increased by 49%, according to a Center for American Progress analysis of Federal Reserve data.
Bottom Line
Beginning their investment journey at an average age of 19—a full 16 years earlier than Baby Boomers—Gen Zers are leveraging technology, embracing cryptocurrency, and reshaping traditional investment patterns. While social media and influencers may inform their investment decisions, this generation’s embrace of financial education, willingness to start small, and comfort with digital tools suggests they’re not just participating in the market—they’re actively redefining it.
