3 Reasons Millennials Haven’t Been Investing
by Nicole Schlichting, Team Grow Writer & Fellow Millennial
Millennials: we are tenacious, unrelenting, motivated, passionate, self-assured, and smart. The generations before us are in awe of our successes and technologic achievements (as much as they like to accuse us of being entitled) and our impact on the world will remain long after we are gone. Why, then, if millennials are known for being so business-conscious and forward-thinking, does our generation shy away from investing?
Here is a quick breakdown of the top three barriers that keep millennials from being more active investors…
Money Money Money
Though our generation has an unprecedented number of 35-and-under millionaires (and countless others striving wholeheartedly towards the same goal), we also tend to be very careful with our money. Student loans are a force to be reckoned with, and even successful millennials, can find themselves with high student debt. On the other hand, of course, we have the millennials who are still struggling to get their cool startup idea off the ground (while also paying their exorbitantly high rent) or the recent graduates who are simply trying to hold onto a job in today’s cutthroat business climate. For those in this category, investing, understandably, may be the last thing on their minds.
I Literally Can’t Even…Understand
Unless you studied Business, Economics, or something along those lines in college, you probably weren’t taught the first thing about investing. If something is hard to understand, it is likely to be hard to imagine doing; “You want me to put my hard earned money where? Without seeing returns for how many years? No thanks.” A good chunk of millennials know little to nothing about smart, long-term investing, and we sure as hell don’t have the time to figure it out on our own. Where are those practical 1950’s ‘how-to’ high school classes when you need ‘em? Sign me up for ‘Managing to Leave Your Twenties With More Money Than You Started With 101,’ please.
“I’m not really a fan of anything on the menu.”
A huge turn-off for millennials? Companies with bad environmental or social policies. You know, massive multi-billion dollar corporations whose names are constantly associated with corruption and notoriously shady business. You’d think that our increasingly progressive world would have righted such wrongs by now, yet these are frequently the kinds of companies we are presented with the opportunity of investing in. Many millennials feel that there aren’t many investment options with companies that are both economically promising and environmentally or socially conscientious.
A Solution for the Millennial Investor
Though these problems might seem insurmountable for Millennials who are considering investing, there is actually a solution; GrowApp allows you to invest as much — or as little — as you want depending on your budget constrictions. Don’t understand investing? There’s an app for that. Grow Invest (http://bit.ly/GrowInvest) walks you through the process of investing by providing company-specific Grow Scores — easy-to-understand ratings based on environmental, social, and governance performance—and allowing you to choose an effective, personalized investment strategy aligned with your personal values. Our team is here 24/7 to help clarify any questions you might have. Finally, we here at Grow are dedicated to building portfolios consisting only of conscientious, trustworthy, sustainable companies; that way, you can be sure that your money is in the hands of people who are trying to change the world, one socially responsible investment at a time.
