How Gen Z can get started on their investment journey

It’s not surprising that a number of surveys have found that younger millennials and Generation Z score lower on financial literacy than their older Generation X and Y counterparts.

Fundamentally, this is because educating yourself and learning about the different components of wealth takes time, often through direct or shared experiences with family, friends and colleagues.

However, the flip side to this “education curve” is that there is digestible information, webinars and training material online that are more accessible than ever before, compared with the environment Generation X and older millennials had, so there is an opportunity for younger people to learn quicker than their parents, for example.

Additional digital tools such as “demo” accounts and investment simulations also offer a direct way to dip your toes into the wealth world before you have the capital or regular income to do so.

This is another great way to familiarise yourself with the wealth journey ahead.

Start as early as you can

If you consider how Fomo (fear of missing out) and Yolo (you only live once) influences youth spending patterns, it appears that younger people prioritise living for today ahead of thinking about tomorrow.

However, I would strongly advise that you start saving as soon as you can to get into the habit and take advantage of the “law of compounding” on your portfolio, which is among the strongest success factors for building a healthy investment portfolio during your lifetime.

Fortunately, access to investment platforms and even investment advice is far easier today than it was before.

It is relatively simple to set-up an online investment and trading account with either a zero minimum or low minimum cash requirements to start.

So, if you only start with a few dollars each month, my advice would be to start as early as you can, build the habit of regular saving to build some discipline.

Start simple and low cost

While you are going through the education cycle described above, you can start with easy…

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