The stock market has always been seen as a traditional investment avenue for older generations. However, recent trends have shown a significant increase in the number of young adults investing in the stock market. Gallup's latest estimate finds 61% of U.S. adults own stock, the highest it has been since 2008. This statistic raises the question: what percent of 18-29 year olds are investing in the stock market?
Generation Z adults, individuals between 18 and 25 years old, prove to be more financially sophisticated than any previous generation was at their age. With access to information and technology, young adults are becoming increasingly aware of the potential benefits of investing in the stock market. The first lockdown saw a spike in interest in the stock market from people under 30, and it hasn't disappeared, according to a study.
While it is difficult to obtain an exact percentage, various reports suggest that a significant number of young adults are actively participating in the stock market. The growth in online stock market accounts in 2022 was noted by the Philippine Stock Exchange, indicating a growing interest among young investors. Additionally, the study on millennials, who range between 19 and 34 years old, revealed that they are smart about saving money, further indicating their inclination towards investing.
Understanding the average retirement savings can provide insight into the investment behavior of young adults. Studies have dug into the statistics to find out the average savings by age, income, and more. This data can help determine if young adults are actively investing in the stock market as a means of securing their financial future.
It is important to note that stock ownership has declined among most key subgroups in the U.S. since the financial crisis, except for older and upper-income Americans. However, this does not necessarily reflect the investment habits of young adults. The stock market can be a volatile and unpredictable environment, and this may deter some young adults from investing.
As the popularity of online trading platforms increases, it has become easier for young adults to enter the stock market. Online payments firm Klarna, known for its 'buy now, pay later' service, has also noticed a growing interest in stock market investments among its users. This indicates a shift in young adults' financial mindset, where they are actively seeking opportunities to grow their wealth through investing.
In conclusion, while there is no specific percentage available, research and trends suggest that a significant number of young adults are investing in the stock market. The accessibility of information and technology, coupled with a desire to secure their financial future, has led to a growing interest in stock market investments among this demographic. As the investment landscape continues to evolve, it will be interesting to see how young adults shape the future of the stock market.
