Research about the intentions and habits of Millennials and Gen Zs in the UK in relation to investing and growing money over the long term shows that 1 in 3 (33%) are considering putting money in stocks and shares ISA (Individual Savings Accounts). The research by fintech Plum was conducted at the beginning of March 2023 and included over 1,750 individuals living in the UK.
Investing in the stock market was listed as the third most popular reason to save money. Other popular choices were savings for a holiday and building an emergency fund. This shows the growing appetite for investing especially among those under 25 years of age.
Stimulated by unstable macroeconomic trends, but also by growing dissatisfaction with high street banks (mostly due to low-interest rates), risky investments are gaining momentum among young people. According to the survey, every fourth respondent is considering investing in stocks, while every fifth is researching cryptocurrencies and precious materials.
Additionally, as might be expected, Millennials and Gen Zs are using technology as a tool to research the best way to optimise their ROI. According to Plum's findings:
- 67% believe that new technologies make it easier to understand savings and investments
- 65% believe that the amount of financial information available online – blogs, podcasts, and elsewhere – helps them better understand saving and investing
- 66% would switch to a bank that works only in a digital market if they were offered a better interest rate.
Wealthy online financial entrepreneurs are found to be inspirational by a majority of the demographic surveyed, although more than two-thirds (68%) of men find them inspiring to some degree while the number drops to just one in three (33%) for women.
However, even though current financial circumstances are not at as enviable as those of mid-2022, despite such a situation, the research showed resilience and optimism for the future. Just under two-thirds (65%) believe they are better placed to have money work hard for them compared to older generations, while almost half (46%) believe they have the potential to become an ISA millionaire one day.
“Taking time to research not only the best savings options available, but the wisest ways of investing, can pay huge dividends. Maybe the dream of being an ISA millionaire isn’t so far off for today’s young people after all.” Victor Trokoudes, Plum founder and CEO