Gen Z and Millennials Choose Crypto Over Stocks

A recent survey highlights a notable shift in investment preferences among younger Americans, with a greater propensity for cryptocurrencies over traditional stocks.

Conducted between October 16 and October 19, the Policygenius Financial Planning Survey published on April 9 surveyed 4,063 U.S. adults, revealing that 20% of Gen Zers (ages 18-26) and 22% of millennials (ages 27 to 42) prefer investing in alternative assets such as cryptocurrencies and nonfungible tokens (NFTs).

In comparison, the interest in stocks is significantly lower among younger generations, with only 18% of Gen Z respondents owning stocks, versus 28% of Gen Xers and 45% of Baby Boomers.

This trend suggests a shift in how wealth is stored and managed across different generations, potentially indicating a greater willingness among younger people to take risks or perhaps reflecting the unique economic challenges they face, such as the housing shortage.

Myles Ma, an analyst at Policygenius, commented on the findings, noting that "Younger generations store their wealth differently than their Gen X and boomer counterparts, including novel investments like cryptocurrency.

This could show a bigger willingness to take risks with their money, but it could also reflect obstacles they can’t control, like the growing housing shortage.”

The survey also shed light on the role of social media in financial decision-making, with 9% of Gen Z and 8% of millennials likely to turn to social media first with a financial question, compared to only 3% of Gen X and 1% of baby boomers.

This trend underscores the different ways that younger generations seek information and make financial decisions.

Furthermore, the sentiment among these younger investors about their financial management skills is generally positive, with many feeling "somewhat proud" of how they manage their finances.

This attitude reflects a proactive approach to financial literacy and independence among younger Americans.

Additional studies support these findings. A Bitget study from April 2023 found that 46% of millennials in major economies, including the U.S., own cryptocurrencies.

Similarly, a 2022 survey by Charles Schwab indicated that around 50% of Gen Z and millennials want their retirement funds invested in digital assets, with 43% of Gen Z and 47% of millennials already investing in cryptocurrencies outside their retirement plans.

These studies collectively depict a generation that is increasingly turning to digital assets as a core component of their investment strategy, diverging from the traditional paths taken by older generations.

Sources:

https://cointelegraph.com/news/generation-z-and-millennials-choose-crypto-over-stocks-report

https://www.policygenius.com/life-insurance/2024-financial-planning-survey-millennials-gen-z-money/