Top Reasons Why Gen Z is at Risk of Losing Their Money

1. The Misconception of Investing

So many young individuals in Gen Z believe that investing is only for the wealthy or older generations. This outdated perspective can hinder their ability to start building wealth early. The truth is, Gen Z can conduct research and become expert investors in about 15 minutes! By dollar-cost averaging into low-cost index funds, they have the potential to outperform 90% of the world’s finance professionals.

2. Overconsumption of Information

Another challenge for this generation is that they are overwhelmed by noise. With continuous information bombardment from various media outlets, it’s easy to get lost in a sea of advice and opinions. To combat this, it's essential to take a step back. Turn off the phone, stop scrolling, go for a walk, and refocus on long-term financial goals.

3. Viewing Investing as a Game

Many Gen Zers approach investing as if it’s a video game, focused on winning or losing daily. This is fueled by the fintech industry, which designs engaging platforms that can be addictive. However, it’s crucial to remember that true investing success is only visible over the long term. The real measure of success will be evident in 30 years when they’ll reflect on their financial journey and realize they never have to think about money again.

If you find this information helpful, consider liking and following Social Cap for daily financial tips!

Source