eToro data shows Gen Z more open to investing than baby boomers
Gen Z investors reshape the retail investing landscape
According to data from the latest Retail Investor Beat study by eToro, the younger generation of investors is far more likely than older generations to discuss their investments.
The survey, involving 10,000 retail investors from 12 countries, shows that 55% of Gen Z participants (aged 18-27) discuss investments with friends, and 44% even share these conversations with family members. In contrast, only 29% of baby boomers (aged 60-78) discuss their investments with friends, and just 22% with family.
Gen Z’s openness extends beyond family and friends, as they are twice as likely as baby boomers to compare investments with strangers (10% vs. 4%) and colleagues (32% vs. 15%). Interestingly, Gen Z is the only group less inclined to discuss their investments with romantic partners, possibly because a larger portion of them are single.
Sam North, an eToro analyst, commented on this trend, noting, "Gen Z investors are changing the narrative around personal finance, embracing investment discussions with friends and even strangers, reflecting their confidence and desire to benefit from collective knowledge. Much like they’ve normalized previously sensitive topics like mental health, Gen Z has brought investment discussions to everyday conversations."
Gen Z dedicates extra hours to investment research
Gen Z’s involvement goes beyond discussions; they are also the most dedicated to researching their investments. Data shows they spend an average of 3.7 hours per week on investment research, about an hour more than other age groups. They frequently analyze company performance, watch educational videos, and explore other resources to enhance their knowledge. Additionally, Gen Z investors are noticeably proactive: 30% have completed investment courses, 45% study strategies of well-known investors, 40% read books on investing, and 25% pay for investment tools — all rates significantly higher than those among other age groups.
Motivation for financial independence over retirement
Gen Z’s proactive approach to investing may stem from their unique financial goals. Unlike older generations, often focused on retirement, Gen Z primarily seeks financial independence, with 44% citing it as their main motivation, compared to 33% of other investors. Conversely, only 18% of Gen Z is concerned with retirement, compared to 36% of older investors.
North highlights the reasons behind this generational shift, explaining, "Gen Z has witnessed economic instability but grew up in an era of digital information access. Their eagerness to discuss and diligently research investments is part of their strategy to take control of their financial future and leverage the tools available to them."
By actively participating in investment discussions and prioritizing financial independence, Gen Z is reshaping the retail investing landscape, turning it into a transparent and socially inclusive field for all generations.
Previously, the trading and investing platform eToro noted a shift in retail investor interest towards European stocks.
