Over 40% of Gen Z are investing because they're driven by FOMO, survey finds

• Over 40% of Gen Z are investing because they're driven by FOMO, a new survey shows.
• In trying to meet financial goals, over 80% of American Gen Z started investing before the age of 21.
• The younger generation is primarily learning about finance and investing through social media.

Gen Z is getting started young with investing and many are driven to do so by FOMO or a fear of missing out, a survey by the CFA Institute and the Financial Industry Regulatory Authority Investor Education Foundation (FINRA) found.

2,800 Gen Zers, millennials, and Gen Xers from the US, Canada, UK, and China were surveyed between November and December 2022 to explore their investment behaviors and motivations.

The results showed that over 40% of Gen Z investors in the US, Canada, and UK cited the fear of missing out (FOMO) as a major influence in their decision to start investing. That climbs to 60% of Gen Z in China who started investing because of FOMO.

This fear is seeing Gen Zers across the world start young with investments. Over 80% of Gen Zers in the US and UK began investing before the age of 21 as well as 79% of Canadians and 63% of Chinese Gen Z investors.

A quarter of Gen Z in the US even started investing before the age of 18 with just over 20% in the UK and Canada doing the same. Only 7% of Gen Z in China started investing before they were 18 years old.

Gen Z in the US is primarily investing in cryptocurrency and individual stocks. Their motivations for investing vary from saving for the long term whilst also wanting extra spending cash with 61% of Gen Z investors wanting enough money to travel and go on vacation; another 55% want to save for unexpected expenses, and just over half want to be able to choose when they retire and live comfortably.

The tech-obsessed generation is becoming financially educated through social media and the internet, with 48% learning about investing and financial topics through social media, 47% by searching on the internet, and 45% from parents and family.

Gen Zers are mainly using YouTube and internet search for these topics, followed by social media platforms like Instagram and TikTok.

But while the younger generation may be doing their best to be investment savvy, at least 68% say they are concerned that inflation and the rising cost of living will put a dent in their ability to meet financial goals.

A 2023 Deloitte Survey of over 22,000 Gen Z and millennials around the world found that over half are living paycheck to paycheck and are taking on a second job to make ends meet.