Young American investors are becoming more open to alternative finance, but they don’t know where to start.
According to a new survey by alternative investment platform Connect Invest, younger investors in the US are becoming more proactive with their investment goals, and are seeking out ways to access alternative investments.
42 per cent of millennials and Gen Zs said that they are already investing in cryptocurrencies, while over half invest in stocks and shares.
26 per cent of the millennials surveyed said their they were frustrated that their bank investments are not generating enough return, but more than a third (34 per cent) said that they don’t know where to start when it comes to finding alternative homes for their money.
“This survey makes it clear that younger generations in particular are becoming increasingly interested in investing, and are looking for options that might not have been available in the past,” said Todd Parriott, chief executive of Connect Invest.
“Our new Connect Invest platform offers alternative investments that are easy to understand and produce higher yields than traditional banks.”
Connect Invest found that 44 per cent of investors want to generate passive income from their investments, while millennials were more likely than baby boomers to name this as a financial goal.
The survey also found that social media is becoming an important source of financial information for younger generations.
38 per cent of millennials surveyed said that they seek out finance or investing information from YouTube, while 18 per cent listened to podcasts and 17 per cent used TikTok for financial advice.
Gen Z investors are even more likely to take their lead from social media, with 47 per cent using YouTube, 29 per cent using TikTok and 20 per cent seeking out online blogs.
Meanwhile, 60 per cent of older investors still rely on financial professionals for their financial advice.