These are the financial mistakes that the generation between the ages of 18 and 24 makes right now
A Barclays study has shown that this generation likes to take risks when investing, but they make specific mistakes.
Generation Z refers to those who are between the ages of 18 and 24 today. As the members of this generation grow, they become more present in the world of economics and are beginning to invest. According to a study by the Barclays Smart Investor , the way this generation invests is very risky and they make several mistakes.
Barclays conducted a focus group with 2007 people who were 18 years of age and older and had experience investing. The group had people from Gen Z, millennials, and Gen Y people . In the last year of the pandemic, which has been a strange monotony for many people, 30% of the youngest group said their “appetite for risk” increased, while it only happened to 18% of millennials.
As in many aspects of life, GenZs are used to instant results, and this is what they expect from their investments. Experts on the subject recommend that investments be for a minimum of 5 years , 49% of them are investing their money for less than that. They also check their portfolio frequently, trade very often, and make speculative decisions about their investments. All these actions are not recommended by people who know more about investments.
Investing in this way can generate losses since the market can fall at any time and if you do not give your investment time to recover, you lose money. Long-term investments reduce risk, although that seems to be the opposite of what Gen Z's want.
A post- pandemic economic boom is approaching in the coming years. A report by Bain & Company explained that investors will begin to spend the money they could not use in recent months. Generation Z is also estimated to dominate consumption earlier this decade.