Gen Z believes they know more than their parents about investing. Do they?
National Stock Exchange (NSE). The inclination of Gen Z towards investments is among the key growth drivers of the Indian economy.This generation has heard all about the 2008 financial crisis and experienced the 2020 health crisis and recessionary fears that spanned the next three years. Those in India have experienced a lot more, including high-speed UPI transition and demonetization.
In short, this generation has been through an economic roller-coaster ride.Undoubtedly, their attitude towards financial management is significantly different from that of their parents. The two generations differ fundamentally because the previous generation focused on necessities and savings, whereas the new one targets wealth creation and early retirement with a topping of YOLO (you only live once).Gen Z does not want to compromise present desires for a future that has no guarantee. So, what is their take on investing, and do they know more than their parents? Let’s see.While parents have a considerable influence on Gen Z’s financial behaviour, newer generations verify everything from the world wide web.
Social media, podcasts, and tutorials are their resources for “hands-on," experiential advice. These platforms have exposed them to the concepts of smart money management, ESG investment, and diversification.However, Gen Z has access to excessive amounts of information. This information overload has made them more risk tolerant with a heavy dose of FOMO (the fear of missing out).Higher risk shifts investing decisions towards high-return (which often comes with high risk) asset classes.
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