Millennials Continue to Ignore the Importance of Investing


When it comes to investing for the future, millennials tend not to be overly aggressive like previous generations.

Although, that doesn’t mean they aren’t saving. In fact, they have been found to be actively saving, however 79% aren’t investing in stocks or actively trading.

A recent poll by Harris revealed the various reasons why millennials aren’t investing:

  • 40% said they feel they do not have enough cash
  • 34% said they do not know how
  • 13% blame their student debt
  • 60% of young men said investing was confusing

Experts believe that another factor why millennials aren’t investing is the lack of relatable experts available to them. Financial planner Douglas Boneparth said that the average age of financial advisors today is 55. He added that: “There are more financial advisors over the age of 70 than there are under 30.”

Witnessing the financial crisis and weighed down by more student debt, it has become difficult for millennials to invest, as they find it to be ‘too risky’ (46%). Instead of investing in stocks or other high-profit assets, this age group holds more investments in cash (70%) that unfortunately, promises no future growth.

Ashley Stahl of Forbes believes that it’s millennials’ misconceptions on investing that is ruining their future of financial freedom. The author explained that 38% of people in this age group think that they need a lot of money (£800/$1000) to get started, when in fact all they really need is close to £390/$500 to get started.

Stahl also cited that their significant knowledge gap in investing and high expectations are ruining their potential to save for their retirement. However, the truth is that millennials have plenty of potential to succeed in investing, especially in trading foreign exchange.

Millennials Continue to Ignore the Importance of Investing

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For starters, their high affinity for technology combined with their desire for conservative investing can help them to gain leverage on the market. Currently, there is an abundance of digital financial resources and tools that can be accessed conveniently via mobile devices that can assist them in trading efficiently and effectively while on the go.

There are platforms out there that allow opening a trading account for only £50. One useful platform FXCM’s MetaTrader 4 which also provides users with assistance from expert advisors for free to enhance their trading experience. With a wide selection of trading resources to maximise, it will be a lot easier for millennials to start trading even with very little capital.

Time also plays an important role here. Investing has always been related to time – the longer you stay invested, the bigger the possible payout. Young investors have longer to accumulate wealth than baby boomers or older investors while learning from experience and accumulating some expertise to execute effective trading strategies.

There are effective tips that can encourage millennials to put some money into the market:

  1. Start investing now as the economy recovers
  2. Compound interest will do you good if you invest soon
  3. Buy assets that you know (and trust) and hold on to them for a long time
  4. Make the experience simple by leveraging tech tools
  5. Stop the excuses and start investing now

By starting today, millennials have the chance to retire happily with millions in their pockets, according to an article published on However, their risk aversion is stopping them making the right choice of investment. Hopefully, they will be able to overcome their crisis mentality to be able to invest and live a fruitful and stable life in the future.

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