Generation Z’s favorite investment may be a cause for concern. Here’s why.

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Generation Z is investing — but their No. 1 choice may give you cause for concern

Generation Z is getting smarter about their money, with some starting to invest even before they turn 18, according to a new report.

The survey by FINRA Investor Education Foundation and the CFA Institute, which defines Generation Z as those aged between 18 to 25, concluded that 6 in 10 owned at least some investments. Some 41% said they were investing in individual stocks, and 35% in mutual funds. “The main motivator for Generation Z investors was to have enough money for traveling. Saving for unexpected expenses and retirement came in second and third place. respectively.”

“Gen Z investors are a growing force of digitally savvy stakeholders who are making their entrance into the financial markets,” the report stated. When first starting out, Gen Z generally tried their hand at crypto with 44% saying so in the report. About a third also said they started investing in individual stocks, and 21% said in mutual funds. The median amount they first began investing with was $1,000.

 

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