Investment Apps: A New Era Of Investing For Gen Z (2024)

Facing uncertain career prospects and the rising cost of living, it’s unsurprising that the younger generation are taking their financial security into their own hands, by investing. This tech-savvy group of individuals are switching their attention to the new investment apps hitting the market, promising a safer way to make money and save for the future.

The investment market has recently seen a rise in fintech companies that are offering smarter solutions for the everyday investor. With a particular focus on cryptocurrencies and precious metals, new app technologies are changing the way people manage their money by offering a safer and more accessible alternative. Research carried out by precious metals savings app, Minted, found that 71% of 16–24-year-olds are now investing their money. Although Gen Z were already notably savvy when it came to digital banking and saving, data shows that the pandemic played a significant role in the increasing financial interest amongst this demographic, with over 60% choosing to start saving more and over half to start investing. Precious metals, stocks and shares, and cryptocurrencies amount to almost 60% of total investments for this age group, making it clear that they are not afraid of exploring differing investment options.

The pandemic left many with feelings of financial uncertainty, but particularly the younger generation, who are now facing uncertain career prospects and the rising cost of living. With the rise of ‘finfluencers’ – financial influencers – social media also had a role to play in increasing the number of young investors. Terms such as bitcoin and dogecoin regularly feature on trending pages and TikTok and Instagram reels offer a plethora of advice on how to get started with investing.

The rise of digital banks such as Monzo and Starling have also shown that technology is making anything possible in the world of personal finance. Gone are the days when a physical bank is needed to support investing habits and thanks to the abundance of fintech companies entering the markets, smarter investing and banking solutions, such as app investing, are now readily available. Offering users low entry costs and starting amounts, young people can delve straight into building their investment portfolio using just their smartphone.

One of the companies on a mission to offer young people a safe and convenient route into investing is Minted. Investing should be a viable option for the everyday person and young people should be able to invest their money where is matters. Whether they’re looking to boost their bank account or build an investment portfolio of precious metals and cryptocurrencies, investing should be made accessible to all.

However, with any form of investment, a certain amount of knowledge is essential. The financial landscape is ever-changing, and markets can be volatile, so proper research and education into investment routes is vital to mitigate against any potential risks.

Firstly, it’s important to be aware that each investment type has different levels of risk. Due to their volatility, cryptocurrencies, such as bitcoin can be considered particularly high risk, whereas investments into precious metals, such as gold and silver, could be considered a safer option, as they hold their intrinsic value. Undertaking prior research and having an in depth understanding of investment options is important.

Those turning their attention to modern investment tools such as apps should begin by undertaking thorough research into their chosen platform to gain an understanding of its credibility and the service it offers. Users should ask themselves what they are looking for from their investments and what their long-term goals are. Is it to make money quickly, or invest slowly over time for a more gradual financial growth? Are they looking for a physical product, such as gold? Establishing these goals and comparing them to the app’s offering, can help ensure that the investor is making sInvestment Apps: A New Era Of Investing For Gen Z (1)mart financial decisions that will benefit them and suit their situation.

The credibility of platforms is not to be overlooked. To understand how reliable the platform is, users should research how established the company is and what they reviews are from other investors and financial professionals. Being aware of any additional fees and details of the terms and conditions is also essential in preventing any nasty shocks further down the line.

For many young people, it may be their first step in the world of investment, so it’s important to start slow and build up experience. It is generally also good practice to spread risk by investing in different asset classes and industries. By setting up a range of smaller investments, rather than one large sum, users are better protected against substantial loss and able to build a wider investment portfolio. Another element to consider is affordability. Encountering financial difficulty can lead to a number of problems down the line, particularly with securing loans from banks or lenders, so it’s important for users to be realistic about what they can afford to invest. Markets can change quickly, so not reacting rashly to a changing landscape is vital if a portfolio is to be managed effectively.

Thanks to the rise in investment apps and cryptocurrencies, investing has never been easier. As modern technologies continue to rapidly diversify, no one can say for certain what is on the financial horizon. However, with all the tools needed to get started with investing, it is clear that the younger generation will play a significant role in popularising new and developing platforms, as well as challenging the stereotypes of what people invest in and how.

Hamzah Almasyabi, CEO at MintedTM, an investment platform which allows individuals to buy and sell precious metals.

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As a financial expert with a deep understanding of investment trends and the evolving landscape of personal finance, I can attest to the significant shifts occurring, especially among the younger generation. The article highlights the increasing interest of the tech-savvy youth in taking control of their financial security through investments, particularly leveraging new apps in the market.

The rise of fintech companies, with a focus on cryptocurrencies and precious metals, is transforming the way people manage their money. Data from Minted, a precious metals savings app, indicates that 71% of 16–24-year-olds are now actively investing. This surge is not only attributed to the existing digital banking and saving acumen of Generation Z but also intensified by the impact of the pandemic, with over 60% opting to save more and over half choosing to start investing.

The emergence of 'finfluencers' on social media platforms like TikTok and Instagram has played a significant role in this trend. Terms like bitcoin and dogecoin are regularly trending, and social media influencers provide advice on how to navigate the investment landscape.

Digital banks such as Monzo and Starling have further contributed to the accessibility of personal finance, eliminating the need for physical banks to support investment habits. The abundance of fintech companies has paved the way for smarter investing and banking solutions, making app investing readily available with low entry costs and starting amounts.

Minted, as mentioned in the article, is among the companies striving to offer young people a safe and convenient entry into investing, emphasizing the importance of making investing accessible to all.

However, the article rightly points out that, despite the convenience, a certain level of knowledge is essential. The dynamic nature of the financial landscape and market volatility require individuals to undertake thorough research and education into investment routes. Understanding the different levels of risk associated with various investment types is crucial. Cryptocurrencies like bitcoin, for instance, are considered high risk due to their volatility, while precious metals are seen as a safer option due to their intrinsic value.

For those venturing into modern investment tools such as apps, the article provides valuable advice. Conducting thorough research into the chosen platform's credibility, understanding long-term goals, and being aware of risks and fees are essential steps. It emphasizes the importance of starting slow, building experience, and diversifying investments across asset classes and industries to spread risk effectively.

In conclusion, the rise of investment apps and cryptocurrencies has made investing more accessible than ever. The younger generation is poised to play a significant role in popularizing new platforms and challenging traditional investment stereotypes, shaping the future of personal finance.

Investment Apps: A New Era Of Investing For Gen Z (2024)
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