- Gen Z investors twice as likely as baby boomers to discuss portfolio with family (44% vs 22%)
- They are also more likely than others to broach investing with friends, colleagues and strangers
- This age group is most dedicated to improving, spending extra hour per week on stock research
A new wave of Gen Z retail investors is turning financial markets into a dinner table topic, with this age group far more likely to discuss their portfolios with friends and family, according to data from the latest Retail Investor Beat from trading and investing platform eToro.
In the study of 10,000 retail investors across 12 countries, 55% of Gen Z respondents (aged 18-27) said they had discussed their investments with their friends, with 44% having broached the topic with relatives. This willingness to talk about investing decreases dramatically with age. For example, just 29% of baby boomers (aged 60-78) have discussed it with friends, with 22% having talked about investing with family.
Romanian Gen Z investors also discussed their investments more with friends (60%) and colleagues at work (40%) than their partner or spouse (36%) and family (33%). On the opposite spectrum of age, Boomers preferred to keep the investment topic in the close family, discussing it mainly with the spouse (58%) and their children (52%) than with friends (36%) and colleagues (19%). The larger family (7%) was not included too much in the discussion. Even strangers (9%) were more involved in the investment discussion than the rest of the family.
Gen Z’s openness when it comes to investing does not stop at friends and family, with this group more than twice as likely as boomers to have compared investment notes with strangers (10% vs 4%) and colleagues (32% vs 15%). The only area where the trend is reversed is when it comes to romantic partners, possibly due to a greater proportion of Gen Z respondents being single (see Table 1).
Commenting on the data, eToro Analyst Sam North, says: “The latest crop of retail investors are rewriting the script, with many embracing the opportunity to share their investment ideas with friends and their wider circle as they look to harness the wisdom of the crowd. In the same way that Gen Zs have turned other ‘taboo’ subjects, such as mental health, into dinner table chat, investments and money have become normal topics of conversation amongst this age group.
“This trend of normalizing investing is crucial if we’re to increase participation in financial markets and get more people taking their financial future into their own hands.”
Table 1: Investors were asked which group of people they have discussed their investments with
| Gen Z (18-27) | Millennials (28-43) | Gen X (44-59 | Boomers (60 -78) | Silent Generation (79+) | |
| Friends | 55% | 48% | 38% | 29% | 24% |
| Family | 44% | 37% | 32% | 22% | 17% |
| Partner/spouse | 40% | 51% | 50% | 52% | 42% |
| Colleagues | 32% | 29% | 26% | 15% | 9% |
| Strangers | 10% | 8% | 6% | 4% | 2% |
Table 2: Romanian investors were asked which group of people they have discussed their investments with
| Gen Z (18-27) | Millennials (28-43) | Gen X (44-59 | Boomers (60 -78) | Silent Generation (79+) | |
| Friends | 60% | 52% | 39% | 36% | 0% |
| Family | 33% | 22% | 20% | 7% | 0% |
| Partner/spouse | 36% | 52% | 50% | 58% | 0% |
| Colleagues | 40% | 29% | 28% | 19% | 0% |
| Strangers | 14% | 17% | 16% | 9% | 0% |
Gen Zs spend an hour more on investment research as they strive for financial independence
Gen Z is also the most dedicated when it comes to conducting investment research. This age group spends an average of 3.7 hours per week analyzing company performance or watching relevant videos, an hour more than other age groups. They are also considerably more likely than the average to have taken an investment course (30% vs 20%), studied strategies of well-known investors (45% vs 33%), read books on investing (40% vs 24%) and paid for investing tools and resources (25% vs 17%).
Gen Z Romanian investors are studying one hour more (4.7 hours per week) than the average of the global investors (3.7 hours per week), but all three groups from 18 to 59 years old are very close. Millennials are studying 4.1 hours weekly on average and Gen X – 3.9 hours. Only Boomers are below 3 hours (2.7) but still one hour more than the global average.
This difference in proactivity levels between Gen Z and older investors could be partly explained by their differing investing motivations, with this age group far more likely than average to be seeking financial independence (44% vs 33%) through investing, a goal that will require impressive returns, and less likely to be concerned with funding their retirement (18% vs 36%).
The main motivation for investing of Romanian investors belonging to the Gen Z age group is to achieve financial independence, while for the other age groups is to supplement income. This is particularly important for the Boomers where 76% indicated this.
North adds: “The youngest generation of investors are old enough to have witnessed the impact of economic downturns but young enough to have grown up in a digital age where information is just a click away. Gen Z understands the importance of being financially savvy and are making the most of the tools available. Their enthusiasm to talk about investments and actively seek information reflects their determination to take control of their financial future and build a solid foundation for success.”
