New Research found Gen Z are Avid Investors and Largely Influenced by Social Media
Gen Z or the Generation Z are the humans born between 1997 and 2012. The Oliver Wyman Forum and social-first media company The News Movement released a new report titled ‘A-Gen-Z Report’ stating that members of Gen Z avid investors, participating in stock and cryptocurrency investing at a higher rate and from a younger age than their predecessors. With time, numerous researches have concluded that there is a continuous pattern in which each generation is found to be investing more by population and money than the previous generation. Similarly, Gen Z when compared to millennials, were found to be 45% more likely to start investing by age 21.
With this, the society also witnesses Gen Z being the main driver of the ongoing demographic shift towards greater gender and racial diversity in the investing landscape. According to a study dated back in 2000, about 36% of white households in the US reported owning stocks, compared with less than 10% of black and Hispanic households. On the contrary, the latest research by the Oliver Wyman Forum/The News Movement claims the investing cohort of Gen Z investors in the US and the UK has 60% more black and Asian representation. Another fact in the list is the reduced gender parity as women now make up for half of Gen Z crypto investors, compared with only 37% in older generations.
Apart from investment in stocks and cryptos, the Oliver Wyman Forum/The News Movement report also notes that Gen Zers were more likely to cite social media as the impetus for investing, as compared with other generations. This showcases the power of social media in influencing decision making. While Gen Z is also referred to as digital natives, they learn and spend a lot on social media. The report concludes that nearly half of Gen Zers learn investing basics and about a third learn advanced financial strategies via social media. Not only products, but social media also tend to influence the stocks that Gen Z invests in. About 30% of Gen Z investors reported buying stocks recommended by social media investing communities.
The report mentions Gen Z as the consequential generation that may be humankind’s best, and greatest, hope in the existential battles against global warming, inequality, and political and social unrest. The study, conducted in a two-year period, includes focus groups and a recent online survey of 10,000 adults in the United States and the United Kingdom. The usage of social media is not only limited to buying products and getting influenced for stocks and cryptos, but Gen Zers also refer to social media for crucial information like news. The Oliver Wyman Forum/The News Movement research study states that, “They may trust print and broadcast news, but 60% get their news from social media and its many influencers and creators…”
Another important fact mentioned in the report by The Oliver Wyman Forum/The News Movement is that 91% of Gen Zers are willing to pay extra for brands that support the causes they care about. For modern businesses to scale their consumer base, they must understand the Gen Z trends to be successful in the longer run. As a business owner, if one ignores the Gen Zers’ habits, patterns, opinions and statistics, they do so at their peril.