Staring at computer screens and worrying about stocks is no longer exclusive to experienced investors. While the younger generation begins their investment journey earlier than ever before, experienced stock buyers warn that might be a risky move.
According to the 2024 Schwab Modern Wealth survey, Generation Z start their investment careers at 19 on average, much earlier than Gen X, who start investing at 32 on average. The research also reveals that about 45% of Gen Z have investment experience.
Among them, 70% of Gen Z are confident in their investment strategies. In addition, 43% of Gen Z claim that their optimism about their financial management skills comes from their early exposure to investment.
Edward Bonilla, a freshman in legal studies, recalls hearing stock market talk in just week two of the semester.
“I heard people talk about stocks and bonds or whatever, and I was like, I have no clue what that means,” Bonilla said.
He remembers some of his friends in Chicago started investing at his age. While some of his friends started to purchase financial instruments, he felt a little bit stressed out. “I always hear stuff like Fortune 500, or people like to talk about, ‘What’s the best stock to invest in?’” he said.
Bonilla said he wanted to purchase stock after receiving some financial literacy education.
Evelyn Lam, a junior in global business, said that she started investing because of the drive to accumulate money more efficiently. “Depositing in the banks is just too slow… I would like to earn more interest,” she said.
She made an investment based on her intake of the Wall Street Journal and information from the stock market news outlet Seeking Alpha.
“I prefer to buy some tech stock, but I also invest in bonds and funds,” she said.
Lam says that she started learning financial investment strategies in college. Two years later, after finishing her internship, she made up her mind and decided it was time for her to enter the stock market.
Lam believes that compared to the past, there’s now so much information online and applications to assist college students in buying stocks. She emphasized the importance of making independent judgments, and not following others’ opinions blindly.
Craig Sheltz, a first-year Marshall MBA student, says although he’s spending all his money on tuition, he still holds a portfolio of stocks.
Reflecting upon his investment journey that began in his college years, Sheltz said, “Once I was in my undergrad, I started thinking about it. I still didn’t have any money to invest, but I was learning about these kinds of things in school,” he said.
He said the knowledge he earned in school prepared him to enter the stock world when he was ready.
“Don’t be overwhelmed, because I am in business school now, and I’m still learning a lot. Do it when you are ready,” he said.
Another first-year Marshall MBA student, Barkha Bhagia, said that, based on her experience, new stock investors should start with an ETF (Exchange-traded funds) because she thinks they’re safer to begin with. ETF is a collection of stocks or bonds that can be bought and sold like standard stocks.
She believes that students should get more financial knowledge before making investments.
“You’re investing your hard-earned money. So you should be wise about it,” Bhagia said.
USC Credit Union Branch Manager Anthony Nino said when he does presentations related to financial literacy, investing in bonds or stocks is a topic brought up by students.
“COVID-19 brought up a wave of self-investors,” he said.
Nino agrees that the investment environment is better today than in the past.
“I think there are more resources that make it more readily available for them [college students] to just do it on their phone and have the control of doing it every day,” he said.
Nino encourages students to try out different means of finance management.
“Your investments, whether that be stocks, or if you’re purchasing a rental property…you definitely need multiple sources,” Nino said.
Ultimately, Nino believes that students should educate themselves as much as possible on that risk, as he said, “You don’t know what’s gonna happen to the stock market. Nobody really does.”