Apparently the majority of 20-something investors view the process of investing as fun. This is quite an interesting finding seeing as though we just lived through one of the biggest market busts in history.
Kimberly Palmer of the U.S. News & World Report writes: Gen Y: Investing Is Fun, Not Scary
“Online brokerage company Scottrade is out with some surprising findings about 20-something investors: It turns out they consider investing an enjoyable activity. Unlike older generations, they’re more likely to manage their money on their own and to feel confident that they will recover their losses from the recession. In fact, one in three of those surveyed said they invest because it’s fun, an increase from about one in four last year.”
“Other experts and surveys have suggested that the financial crisis has left Generation Y permanently scarred — untrusting of banks and financial institutions, and less likely to invest in the stock market as a result. But this survey suggests 20-somethings aren’t all retreating to their apartments to stuff bills in dark places. At least a significant portion of them are jumping into the stock market, which, given historical patterns about returns following market dips, is probably a good idea.”
I guess the caveat here is that the survey consisted of Gen Yers who are currently investors. As opposed to a random sampling of Generation Y in general. I think if you were to sample a number of random 20-somethings you would definitely find a more cautious stance towards investing.
Nevertheless, it’s great to see that a portion of individuals our age have taken matters into their own hands and started investing for themselves. It’s always been my opinion that people are better off taking the time to learn about investing in order to handle their own financial affairs, rather than handing the matter off to a financial advisor. I’ve said it before, but no one cares as much about your money than you. By starting early, young investors can learn from their mistakes and overcome them so they don’t hamper future financial goals such as retirement.
Do you think of investing as an enjoyable activity? If so, why?
As a Gen Y investor I think of investing as fun because I know that I have time on my side so if I mess up I have to time to make it right. It’s good that you pointed out that this survey was based on investors and not the general community because I don’t think most Gen Y’ers are that enthusiastic about investing and tend to be bogged down with student debt.
I think investing is enjoyable. I put my money into various investment vehicles (mostly mutual funds) and, if I’ve done my homework and chosen my investments properly, I’ll be able to watch my invested money increase. It’s similar to gambling in that respect, and I think many people in our generation tend to think of it more that way. When we hit forty and fifty, and at least some of us see we don’t have enough money invested to retire when we wanted to, I think it’ll become a lot less fun, but until then, it’s a wild party with the possibility of early retirement thrown in.
@ SeeJaneGetRich – Good point about having time on your hands if you start young. If you think about it, someone starting to invest at age 25 will have over 25 year of investing experience by the time they’re 50. That experience is going to be extremely valuable as you enter the prime earning years of your life and your portfolio is likely to be quite substantial.
@ Roger – I’m afraid you may have a valid point regarding the gambling aspect. I do see a good number of young people who treat investing more like gambling rather than a business-like process. Hopefully these folks will learn quickly that the gambling approach to the markets doesn’t pay off well.
Thank you both for your comments!
Investing was totally fun for me in my 20’s. How could it not when we were making money hand over fist with the internet/tech/telco bubble in the late 90’s!!
Now? Not as much due to the downturn. Also, it takes A LOT more capital gains for me to feel the reward since I’ve saved a lot since i first got out of college. Too bad, the PAIN of losing small money is still there, so i’ve become risk adverse.
Cheers
BTW, good job changing the comment style! I like, and I did the same yesterday as well. You should check out gravatar.com and sign up so u can get a cool icon. It’s good and fun for branding.
Thanks FS, I just noticed the update to your comments… they look good. I’ll have to check out gravatar as well. Thanks for the tip!
I couldn’t imagine investing in the 90’s bubble… I was still in high school and I remember listening to a lot of the teachers talking stocks. I think that’s what made me so interested in investing so young. Truly a unique time period.