By: John Glover (MBA)
When you hear the word “invest,” what comes to mind? For many in Generation Z, the image that pops up might be of “finance bros” in sharp suits, stuck in high-rise offices on Wall Street, speaking in jargon that seems a world away from your daily life. Investing and stocks often feel like something for the distant future—a retirement plan for an older, wealthier version of yourself.
But here’s the reality: the world of investing is open to everyone, and there’s no better time to start taking advantage of it than now.
“Investing isn’t just for millionaires in fancy suits. Our parents, our friends, and the world around us are involved in the investing world. But figuring out where and how to get started can be a challenge. For many young people entering the workforce, the idea of investing seems so distant in the future. The reality is that the earlier you start investing, the better. I started when I was 13, and that played a big role in my early career success,” says George Kailas, CEO of Prospero.ai, a leading voice in financial analytics.
The notion that investing is only for the wealthy or those with decades of experience is a misconception that needs to be put to rest. The truth is, the earlier you start, the more time your money has to grow. This doesn’t mean you need to become a stock market expert overnight or that you need thousands of dollars to get started. In fact, small, consistent investments can lead to substantial growth over time, thanks to the power of compound interest.
However, getting started can feel overwhelming. The vast number of options—stocks, bonds, ETFs, mutual funds, and more—can make the investment world seem like a maze. But don’t let that discourage you. The key is to take the first step and build from there.
So, what’s the best first step for Zoomers looking to launch themselves into the investment world?
“Understanding your financial goals is the first step in finding the right investment provider,” suggests Kailas. “Are you looking to learn? Are you saving for retirement, a major purchase, or simply looking to grow your wealth? Are you looking for a brick-and-mortar place, or are you looking to do it on your own via an app? Different providers specialize in various investment strategies, so aligning their expertise with your objectives ensures you get the most tailored and effective advice.”
Your goals will shape your investment strategy. If you’re saving for a big purchase in the next few years, your approach will differ from someone who’s focused on retirement decades down the road. It’s also important to consider how much risk you’re willing to take. Younger investors can typically afford to take more risks because they have more time to recover from potential losses. However, everyone’s risk tolerance is different, and it’s crucial to find a balance that you’re comfortable with.
Fortunately, the rise of fintech has made investing more accessible than ever. Apps like Robinhood, Acorns, and Stash allow you to start investing with just a few dollars. These platforms are designed with new investors in mind, offering educational resources, automated investment options, and user-friendly interfaces. But remember, while these tools can help you get started, it’s still important to do your research and understand what you’re investing in.
The most important thing is to start. Even if you begin with small amounts, the habit of investing will serve you well in the long run. Over time, you can build on your knowledge and increase your investments as your financial situation improves.
While it might seem like investing is something to worry about later in life, the truth is that there’s no better time than now to start taking your finances seriously. By setting clear financial goals, choosing the right investment provider, and starting with small, manageable steps, you can set yourself up for long-term financial success. So, Gen Z, it’s time to put those preconceived notions aside and take charge of your financial future. The world of investing is open to you—don’t wait to take advantage of it.
Published By: Aize Perez