I wanted to start this blogpost by introducing this blog’s writer. Behind WordPress, is Narcy Cruz! Who am I? I am a first-generation undergraduate college student (junior, to be exact) studying Business and Psychology. Aside from academia, I am a new marketing intern at Invested Interests. Growing up, I watched my parents struggle with financial instability, which led to many financial difficulties in our family. Hence, as a teenager, I researched ways to become financially stable one day. I learned about credit cards, savings accounts, filing taxes, the stock market, investing, and even opening a Roth IRA. I was keen on joining Invested Interest because, in my eyes, this was the perfect opportunity to continue learning about the variety of investing methods, but what captured my interest even more, was knowing that this company helps clients invest in the greater good.
In this blog post, I decided to outline five reasons why Generation Z should start investing in today’s economic markets.
1: Financial freedom. As I shared in my introduction, I grew up in a household where there was never financial stability nor financial freedom. My parents lived paycheck to paycheck and never were able to achieve financial wealth. Unfortunately, they won’t be able to invest as much money as they hoped because they started later in life, which leads to the second reason why you should start investing.
2: It is never too early to start investing; if anything, you will have an advantage if you start now. Starting early will not only allocate time for you to list down markets you would want to invest in, but also investing is a time game, not how much money you decide to start investing. According to MyWallst, if you begin investing 2,000 dollars now, it can turn into almost $100,000* after 40 yrs (*10% return a year). Why? The compound magic of investing, your invested money, is working 24/7 (talk about passive income!) I bet you, your savings account can’t do that!
3: Generation Z (14-21) is coming of age, and according to a Betterment Business survey, 88% of Gen Z’s are actively saving some money monthly. I understand that saving money in a savings account has no risks (aside from getting eaten by inflation) compared to investing it on the stock market. We are not suggesting that you invest all your savings but, instead, continue to have an emergency fund. Invested money grows way faster than cash in a savings account. According to Macrotrends.net, the stock market has returned around 10% annually since 1974!
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4: Another reason why you should start investing is to become a shareholder of a company that uses your money for the greater good. As a shareholder, you own part of the company when you purchase a stock, and this enables you a percentage of shares and assets of that company. (Ok, so what!) A company could choose to return money potentially regularly, to its shareholders. As the business you invested grows, the price of your share increases (a time game). If you ever decide to sell your shares, you will pocket any returns you invested!
5: Social investing will allow you to invest in the greater good. According to Ernst and Young’s study, Generation Z is known for being highly informed about the world’s current climate and wanting to take charge of their lives and futures. So why not start investing in social causes like human rights, diversity, and environmental problems. There are so many social causes and a variety of ways to invest your money. Invested Interests will help you customize a strategy that best suits your lifestyle.