Gen Z and Millennials have a lot of differences between them, from spending habits to brand choices. But what happens when it comes to investing their savings?
Swati Saxena, Founder & CEO of 4 Thoughts Finance, offers insights into their contrasting investment preferences.
Tech-savvy millennials and investments
Millennials, born between 1981 and 1996, are known for their affinity towards technology and innovation.
This generation, having witnessed the rise of digital giants like Apple and Amazon, tends to favor investments in tech stocks and disruptive industries.
Their early adoption of digital platforms and apps for financial management reflects a proactive approach to wealth accumulation.
"Millennials are drawn to tech-driven investments due to their familiarity with digital advancements," said Saxena.
"Their portfolios often include companies leading in artificial intelligence, e-commerce, and renewable energy sectors," she added.
Entrepreneurial spirit of Gen Z
Generation Z, born between 1997 and 2012, represents a cohort marked by entrepreneurial ambition and a high tolerance for risk.
This generation prefers investing in startups, cryptocurrency, and other high-growth sectors.
Their inclination towards entrepreneurial ventures reflects a desire for financial independence and a proactive approach to wealth creation.
"Gen Z investors are eager to support emerging industries and disruptive technologies," Saxena explained.
"Their portfolios often feature investments in fintech startups, blockchain technology, and sustainable ventures," she said.
Diverse long-term goals
While Millennials prioritise long-term financial stability through retirement planning and real estate investments, Gen Z focuses on building wealth for life milestones such as starting businesses, funding higher education, and achieving financial independence at an earlier age.
"Millennials are strategic in their long-term planning, often diversifying their investments to include real estate and retirement funds," Saxena said.
"In contrast, Gen Z values flexibility and liquidity, preferring investments that offer growth potential and align with their personal aspirations," she further said.
Informed decision-making and sources
Both generations rely on a blend of traditional and digital sources for investment advice.
Millennials, influenced by their tech-savvy nature, often consult robo-advisors, financial blogs, and social media platforms for investment insights.
Gen Z, known for their analytical approach, favors company reports, direct research, and peer recommendations when making investment decisions.
"Millennials leverage digital platforms for investment research and financial planning tools. Gen Z's preference for hands-on research and direct engagement with investment opportunities reflects their proactive approach to financial management," Saxena highlighted.
