According to Investopedia, half (54%) of Gen Z holds some kind of investment.
Gen Z is a generation that loves to do things differently, and yes, they are refreshing with whatever they do. They are not like the old-school people who think like “save, save, save” and then decide to invest. This generation comes with freshness in everything from tech, values, and creativity, and has built its own path to financial freedom.
For them, it is not just having an amount saved in a bank, but what does money mean to them? Let’s learn about it and find out Gen Z’s investing and saving habits for 2025.
How Gen Z Is Learning About Money
How is Gen Z learning about money? Well, you can guess this easily.
Gen Z is the first generation to grow up with smartphones and social media as a normal part of life. They grew up using:
- YouTube
- iPhones
- Tiktok
These apps have played a deep role in their lives. Today, many of them spend around 6.5 hours on their phones every day.
That is where they have learned the stocks and investments; they are not just watching videos for fun, they are also learning.
A study by Pearson shows that YouTube and videos are Gen Z’s favorite ways to learn, right after teachers.
When it comes to learning about money, Gen Z prefers watching videos, too. According to a survey by Investopedia, 45% of Gen Z use YouTube to learn about personal finance. After that, they turn to friends and family, Google searches, TikTok, and finance websites.
So, Gen Z’s all-time favourite medium is social media. Well, it is not wrong to say it as social media has played a good part in their success.
Gen Z Is All In on Crypto
When it comes to owning cryptocurrency, Gen Z is ahead of everyone. Yes, you heard it right.
Around 51% of Gen Z worldwide say they either own crypto now or have owned it before. That is a lot more than the 35% of people in the general population who said the same.
In the U.S., over half of Gen Z also reported owning or having owned crypto. That is a higher number compared to 49% of Millennials and just 29% of Gen X. This shows that Gen Z is really making digital money like Bitcoin a part of their investment strategy, and that is not likely to change, especially with the crypto market doing well right now.
In fact, one in three young Americans said they would be okay putting at least 5% of their investment money into crypto, while only 21% of all Americans said the same.
The Money Gen Z Made Through Crypto
For many Gen Z investors, crypto is a way to earn money. Almost half (48%) of them say they invest in cryptocurrency to make a profit, compared to 41% of people overall.
They are also worried about rising prices and inflation. In the UK, 42% of Gen Z crypto users said they use crypto to protect their money from inflation, compared to 32% of all crypto users there.
In France, a similar pattern showed up: 39% of 39% of Gen Z said they use crypto to earn profit, while only 30% of the general public said the same.
The Trend Of Soft Saving In Gen Z
Gen Z loves Soft savings. But what is this soft savings?
Soft saving is when people choose to enjoy life now, instead of saving most of their money for the future, like:
- Traveling
- Spending time with friends
- Taking care of their mental health
It is the opposite of trends like FIRE (Financial Independence, Retire Early), which focus on saving a lot and retiring early.
Gen Z Changing The Way Of Thinking for Money
With high housing prices, student loans, and an uncertain job market, many young people are rethinking what it means to be “financially successful.” Some of the surveys tell us a lot about it:
- A survey by Intuit found that 73% of Gen Z would rather live a good-quality life now than save extra money. The same number also said they feel unsure about making long-term plans because of how shaky the economy is.
- According to a 2024 TIAA survey, 42% of Gen Z say world events push them to plan ahead, and even more, 48%, say those same events make them want to enjoy life in the moment.
- But that does not mean Gen Z is careless with money. 84% say they save part of their paycheck every month, and 57% stick to a budget. The problem is rising costs, especially rent, which takes up about half of Gen Z’s income, plus debts and job insecurity. Because of that, only 20% are saving for retirement.
Conclusion
Gen Z is not ignoring the future; they are just choosing to live in the now and keeping one eye on what is ahead. They are being real. With the rising costs, uncertain job markets, and a world that is constantly shifting, Gen Z is working for it.
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FAQs
What is the investment pattern of Gen Z?
Both Gen Z and Millennials prefer safe investments, 40% in FDs & savings, and slightly higher than 30% in stocks/mutual funds.
Is Gen Z interested in investing?
By the time they enter the workforce, 86% of Gen Z have learned about personal investing.
