What are Gen Z investment habits?
According to Nasdaq, Gen Z spends more time researching an investment before buying or selling compared to older generations, with 40% spending at least 1 hour but less than a day, 30% spending at least a day but less than a week, and only 3% not researching at all.
Gen Z's Unique Financial Perspective: As digital natives, Gen Z views money as a means to connect with others and share experiences, rather than solely for earning and spending.
They often use group-buying features or sites where they can team up to get discounts on items. This means they can buy expensive stuff for less money because the cost is shared out among a few people, instead of just one. Gen Zs don't just do this for clothes — they do it for groceries, food, and even trips!
In general, Gen Z'ers display the following consumer behavior: They tend to be 'informed consumers', and will often research and weigh up options before making a buying decision. They tend to be much less attached to specific brands, instead preferring to shop around for the best deal.
Vertex Pharmaceuticals (VRTX): Vertex's combined scientific strength and surging momentum make it a top Gen Z stock. Starbucks (SBUX): Gen Z's customized drink sales are sending Starbucks' revenue sky-high. Tilray Brands (TLRY): Gen Z prefers cannabis over alcohol, but Tilray has both markets covered.
Gen Zers face greater obstacles to financial success
Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.
Gen Z, in particular, may prove to be one of the most financially fit, even from a generational perspective.
| Type of spending | Percentage |
|---|---|
| Household bills and expenses | 52.34% |
| Clothes and accessories | 44.07% |
| Going out/entertainment | 37.49% |
| Food delivery/eating out | 36.99% |
McKinsey's latest ConsumerWise research finds that Gen Z consumers in the United States say beauty products are among the categories they intend to splurge on most in the next three months (behind only groceries and tied with apparel).
According to a 2021 Consumer Culture Report by 5WPR, Gen Z is prioritizing electronics, technology, health, and wellness. Conversely, Millennials and those from older generations prioritize travel and experiences, home goods, and furniture.
Where do Gen Z shop the most?
The news: Nike, Forever 21, Lululemon, Urban Outfitters, and Sephora are some retailers that Gen Zers prefer visiting in person to shop at, owing to their use of social media in interesting ways, a study by MG2 and Berns Communications Group found.
Gen Z is turning to the second-hand market because of the cost of living crisis—not climate change, says eBay's U.K. chief. Persistent high inflation, student debt, and the rising cost of living are primarily driving Gen Z's shopping preferences, says eBay's U.K. chief.
In a world where financial considerations are intertwined with personal and professional aspirations, Gen Z's motivation by pay is a multi-faceted phenomenon. It goes beyond the pay-check, encapsulating their dreams, ambitions, and a desire for a secure and fulfilling future.
Perhaps surprisingly, most U.S. Gen Zs ages 18 to 25 do invest. Close to six in ten, (56 percent) of U.S. Gen Zs ages 18 to 25 report owning at least some investments.
So what are they buying for their own place? Gen Z shopping trends show a wardrobe is often their first big purchase, and they're looking to fill it with new clothes from their favorite retailers, like Madewell (with visits +41% YoY), Abercrombie & Fitch (+24% YoY), and Urban Outfitters (+16% YoY).
Where Are Young, Wealthy Investors Putting Their Money Now? The Bank of America survey found that 80% of young investors are now looking to alternative investments, such as private equity, commodities, real estate and other tangible assets.
Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family.
Gen Z's approach to earning money goes beyond traditional jobs. Many are exploring side hustles and becoming entrepreneurs. This has enabled them to establish multiple money streams and gain valuable experience in money management and business, better positioning them to increase their wealth over time.
This belief stems from a variety of factors, but a major reason is the current job market. Minimum wage is largely stuck at the same as it was 13 years ago and Gen Zers don't believe the pay they get for the work they do allows them a good quality of life, the McKinsey study cites.
According to a recent economic report, Gen Z is very driven by social media influence when making investing decisions. This can lead to FOMO (fear of missing out) and risky suggestions that could cost Gen Z what money they've managed to make in their young lives.
What generation is best with money?
Each generation handles money in a different way.
Aligning on money is all the more pressing for younger generations, who are earlier on in their relationships and careers—nearly half (49%) of Gen Zers view financial compatibility as more important than physical compatibility. That's compared to 40% of millennials, 35% of Gen Xers, and 30% of baby boomers.
Kim Jung-min - $1.7 billion
Kim Jung-min inherited a third of her family's assets when her father, Kim Jung-ju, died in February of 2022, leaving her with a net worth of $1.7 billion at the age of 21, Forbes reports. Her family is known for owning Nexon, an online gaming company in South Korea.
- Breakfast comfort foods from a wide range of ethnicities and available all day.
- More authentic and varied global offerings, such as Mediterranean, Southeast Asian, Korean, and Middle Eastern.
- Hot, spicy, and more adventurous flavors.
- Plant-based menus.
Thus, McDonald's earned the top spot in dcdx's latest report, titled Gen Z's Top 25 Most Magnetic Brands. If it seems surprising that an 83-year-old corporation would earn such an honor, perhaps it shouldn't.
