Many younger individuals are hesitant in regards to the inventory market, in accordance with a survey
According to a survey by the youth nonprofit Junior Achievement USA and tax, auditing and advisory firm RSM, which researches their views on investing, teenagers have mixed feelings about the stock market after GameStop’s frenzy.
After the ups and downs of GameStop, 39% of young people see the stock market as an opportunity to “make money quickly”, while 20% believe it is “too risky”. However, 40% still think stocks are “a good long-term investment,” according to the survey.
While the GameStop saga caught the attention of teenagers, the events may have turned some future investors off, the reactions show. Only half of teenagers think the stock market is “a good thing” for ordinary Americans, the answers show.
In addition, according to the survey, 37% of teenagers would not invest if they got money to participate in the stock market.
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“A percentage of teenagers have been effectively sidelined for this reason,” said Ed Grocholski, senior vice president of brand for Junior Achievement USA.
“It’s understandable why they’d be reluctant to invest money in the stock market,” said Leona Edwards, a certified financial planner, a wealth advisor at Mariner Wealth Advisors in Nashville. “But it could have a serious impact on how much they can save in the future.”
Their reluctance to invest can affect putting money into their first 401 (k) plan for the workplace, Grocholski said.
A lot of these teenagers are already considering investment opportunities other than the stock market, and diversification is a really good thing.
Asset advisor at Mariner Wealth Advisors
“We all know that if you want to invest for retirement, you have to start early,” he said. “What we’re seeing here for a good chunk of teenagers is that it won’t.”
Although the survey showed the youth’s reluctance to go to the stock market, there were also signs of interest.
If the funds were provided to participate, most teenagers would choose to invest, with 43% preferring the stock market, 25% choosing cryptocurrency, and 24% investing money in real estate.
“Many of these teenagers are already considering other investment opportunities than the stock market,” said Edwards. “And diversification is a really good thing.”
The survey also found where teens learn about the stock market, with 43% relying on social media. Other young investors turned to parents (35%), websites (30%) and schools (29%).
“We all know that [social media] is not an unbiased source of information, “said Grocholski.” So they were exposed to the worst-case and best-case scenarios.
These results are in line with responses to a new survey by CNBC / Momentive Invest in You. According to the report, 35% of 18-34 year olds use social media to research investment ideas.
“I’m not against it because there are a lot of knowledgeable people on social media,” said Edwards. “But investors need to do their research and see if the people they are getting advice from are worth considering.”
For this survey, 1,004 13- to 17-year-olds were asked about the market research company Engine Insights from July 15 to 20.