With the dynamism in the financial sector, young adults have demonstrated a growing interest in crypto assets. In a recent study by Policygenius Financial Planning Survey, the American Generation Z and millennials have shifted their focus to crypto investment.
The research demonstrated that young people prefer crypto to traditional financial assets such as stocks. On the contrary, researchers noted that the older generation invested more in stock than in crypto.
Young Generation Invests More in Crypto Than Stock
The study was conducted between October 16 to 19 to examine the crypto demand in the US. The target group involved 4063 individuals investing in diverse financial assets. The respondents were between the ages of 18 and 42 years.
To ensure that the data collected is accurate and reliable, researchers used survey methods to gather information concerning the subject topic. In their findings, the researchers noted that 20% of youths below the age of 26 preferred investing in crypto assets, while 22% of investors aged between 27 to 42 years invested in other financial products.
In the report, approximately 18% of Generation Z and 28% of Generation X respondents confirmed investing in stock. The study indicated that 45% of the baby boomers owned a substantial amount of crypto assets.
The research findings demonstrated that the customer’s preferences varied over age. A statement from the lead analyst at Policygenius Myles Ma argued that in the quest to attain financial freedom, the young adults prefer diversifying their wealth portfolios.
He noted that the Gen X and baby boomers stored their wealth in one financial asset. The analyst was pleased to state that the younger generation has demonstrated to be risk-takers compared to the older adults.
To navigate the harsh economies such as housing shortages, the younger generation has demonstrated their willingness to invest in multiple financial assets. Citing the tough economic times and high-interest rates, the researchers noted that it was difficult to acquire a home in the United States at the moment.
Growing Adoption of Crypto Among Gen Zers and Millenials
In an earlier report, the US government accountability office regretted that the possibility of acquiring wealth was diminishing due to the uncertainties in the financial landscape.
The executive noted that younger adults are active on social media platforms seeking financial advice. The survey indicated that 9% of Gen Z and 8% of millennials seek financial advice on social media.
On the other hand, 3% of Gen X and 1% of millennials admitted to seek financial advice on social media. Besides assessing the investment choices made by the various investors, the study also analyzed the respondent’s financial attitudes and behaviours.
The analyst noted that based on the complex nature of the financial sector, the young generation are proud of their financial management skills. The study demonstrated that millennials and Gen Z were actively seeking to gain financial education to make informed investment decisions.
Significance of Diversifying Investment Portfolio
The Policygenius study mirrors an earlier report that indicated Gen Z and Millenials rank among the highest crypto adopters. Similarly, the Bitget team noted that 46% of millennials in the US, China, Germany, Nigeria and Japan owned a considerable amount of crypto assets.
The growing demand for crypto among the younger generation has captivated the interest of key industry players to examine the factors contributing to the high adoption of digital assets across the youth.
In 2022, Charles Schwab conducted a study to examine crypto adoption across various groups. Schwab noted that with the growing popularity of cryptocurrency, 50% of Gen Z and millennials prefer their retirement to be digital assets.
In his study, Schwab observed that besides investing in 401(K) retirement plans, 43% of Gen Z and 47% of millennials have invested heavily in crypto assets. In a similar research, the Financial Industry Regulatory Authority Foundation and the CFA Institute noted that young adults own multiple investments.
In these investments, 55% of the millennials and Gen Z own crypto, while 41% of investors own stock. The above studies demonstrated the young generation has diversified their investments from real estate and ordinary stock to crypto assets.
