Remember when investing felt like a secret handshake among a select few? Think impeccably-attired executives, quiet trading floors, and a language only a finance major could decipher. Well, that image is a thing of the past, because the stock market isn't just for the old guard anymore. It’s being swapped by a generation that came of age with a smartphone in one hand and a deep longing for financial independence in the other: Generation Z. According to Gerri Walsh, President, FINRA Foundation: “The Gen Z population is diverse and digitally savvy. They are using mobile technology to enter the financial markets in unprecedented numbers and consulting a wide range of information sources as they do so.”

Born roughly between the late 90s and the early 2010s, Gen Z is not just dipping their toes into the market - they're diving in headfirst, exploring equity markets in ways that’s hard to believe. Far from just being passive observers, they’re participating actively, supported by intuitive apps, treasure trove of information, and a distinct set of values that are forcing the traditional financial industry to sit up and take notice. This isn't just a trend; it's a full-blown retail investor renaissance, and Gen Z is taking the lead.

Investing Early, Winning Big

One of the most striking things about Gen Z investors? They're starting early. According to a 2024 Deloitte report, nearly 62% of Gen Z investors globally manage their portfolios via mobile apps, with 54% following financial influencers or online communities for advice. And they’re often jumping into investing while they're still in their teens or early twenties, with the average starting age hovering around just 19. Think about that for a second: the sheer power of compounding interest when it starts working for you a decade or sooner. This proactive approach isn't just anecdotal; research from the World Economic Forum highlights that a significant 30% of Gen Z begin investing in early adulthood, a stark contrast to a mere 6% of Baby Boomers at the same stage.

Digital Natives, Digital Investors

It probably won't surprise you that a generation raised on high-speed internet and mobile devices would gravitate towards tech-driven investment solutions. Gen Z are true digital natives, and their comfort with technology seamlessly translates into how they manage their money. For them, clunky websites and phone calls to brokers are relics of a bygone era. Instead, they're all about mobile investing apps, smart robo-advisors, and even AI-powered financial chatbots.

In fact, a FINRA Investor Education Foundation survey found that a whopping 65% of Gen Z regularly use investing apps to manage their money and make trades. These platforms are designed for them: slick, intuitive, and, crucially, offering low barriers to entry. We're talking about fractional shares and minimal account balances, making it possible to buy a tiny slice of a high-priced stock with just a few dollars. Why bother with a traditional broker when you can execute a trade with a couple of taps on your phone at your convenience?

This embrace of AI is particularly fascinating. According to the World Economic Forum’s (WEF) 2024 Global Retail Investor Outlook, a whopping 41% of both Gen Z-ers and millennials said that they’d entrust AI assistants to manage their investments, which is nearly three times the rate of the 14% of baby boomers who said they’d do the same. For Gen Z, AI isn't a threat; it's a fast, judgment-free, always-available source of financial guidance that fits perfectly into their digitally-driven lives.

Social Media as the New Wall Street Journal?

Per an article, three quarters of Gen Z investors now rely on social media and finfluencers for tips. This instant, peer-to-peer access to information is incredibly empowering, but it also introduces new complexities. There's a vital need to distinguish between credible, well-researched advice and the often-exaggerated hype from online influencers.

Despite the occasional rollercoaster ride, this generation is deeply committed to a "learn by doing" approach. Studies show that 43% of Gen Z investors readily admit they learn through practical experience when it comes to investing. This kind of hands-on, immersive learning — driven by easy-to-use apps and lively online communities — is a powerful way to build financial literacy. Sure, it can come with a few hard-earned lessons along the way, but those experiences often stick the most.

Beyond the Blue Chips

Gen Z's investment preferences aren't just about convenience; they reflect their unique worldview and priorities. While traditional stocks and mutual funds certainly play a role, this generation is increasingly drawn to:

• Cryptocurrency: For many Gen Z investors, crypto isn't a fringe asset; it's a core part of their portfolio. A notable 55% of U.S. Gen Z investors hold crypto assets, often viewing it as more understandable and accessible than traditional investments. They're willing to allocate a substantial portion of their holdings to digital currencies.
• Values-Driven Investing: This generation cares deeply about the world around them. This translates directly into their investment choices, with a strong preference for companies that align with their values – think sustainability, social responsibility, and diversity and inclusion. They want their money to do good, not just make good returns.
• Fractional Shares: The ability to buy tiny "slices" of otherwise expensive stocks has democratized access to the market like never before. A 2025 survey by ValueWalk reveals that 48% of Gen Z now invests in fractional shares, with 67% citing low entry costs as a key motivator.
• ETFs: Exchange-Traded Funds are also incredibly popular with Gen Z. Nearly half of all trades made for Gen Z by financial advisors are in ETFs. Their inherent diversification and the flexibility to trade them throughout the day are major draws.

While they generally tend to be more risk-averse than Millennials, Gen Z investors aren't afraid to venture into higher-risk investments if the potential for substantial returns is there. They seek a balanced approach, blending growth potential with stability, often influenced by having come of age during major economic uncertainties like the COVID-19 pandemic.

Final Thought

Various data compiled across generations highlight distinct generational differences in investing methods among investors worldwide. Younger generations — Gen Z and Millennials — are more inclined toward modern and tech-driven strategies such as fractional shares investing, robo-advisors, and thematic investing. In contrast, older generations — particularly Boomers — have been found to be more conservative and less experimental, sticking to traditional strategies like "buy and hold" and growth investing.

As younger, digital-native generations start to build wealth, a shift in investment strategies — toward more personalized, tech-driven, and socially conscious approaches — is easily noticeable. But despite these trends, Gen Z still feel overwhelmed and underprepared when it comes to managing their money. In fact, according to Bankrate, nearly 29% of Gen Z say they find the stock market intimidating. This shows a growing need for stronger, more accessible financial education that can help bridge the gap and empower the next generation of investors.