Finances for Zoomers
The ultimate Gen Z guide to educate yourself on financial success
“By all means, Gen Z will upend the world to achieve the American dream,” according to experts who urge the world to embrace the change. The new era is coming, and Gen Z is fueling it.
A recent Bank of America report stated that Gen Z (those currently aged from 7 to 22) would be the “most disruptive generation ever.”
They are now entering the workforce for the first time, and BofA said their income would surpass that of millennials’ by 2031, fostering their consumer power.
But how can you identify the investment trends shaped by the members of your own Gen Z cohort? One of the easiest ways to gauge these trends is to look into stock indexes such as S&P 500, reflecting how people spend their money. So what are the most promising stocks with the highest S&P 500? Let’s have a look.
Technology
With people spending more on cloud computing, AI, and video streaming, so-called “FAANG” stocks — Facebook, Amazon, Apple, Netflix, and Google (Alphabet) are generating huge gains and suggest long-term growth potential.
Almost 5,000 US teens said in a recent survey (led by the investment bank Piper Sandler) that Amazon was their favorite e-commerce website. More than 80% of 9,800 teens taking part in a poll owned an iPhone, and 89% expected an iPhone to be their next phone.
Sustainability
Mindful of climate change and driven by the eco-friendly trend, Gen Z is shifting its interest towards companies promoting sustainability. Given the government’s plan to outlaw the sale of petrol and diesel vehicles by 2030, EV companies such as Tesla are in the limelight. Others are making haste to jump on the bandwagon and rebuild their production.
BofA’s report also highlighted one notable thing connected with meat consumption. Gen Z is the first generation where the majority of people adhere to some meat restriction. Indeed, more and more companies producing plant-based meat alternatives have emerged and attained traction over the past few years. Beyond Meat is currently the only company in this field available to invest in on the stock market.
But don’t dive into the investing sea without being fully equipped. Dabble with all these stocks in the Fantasy Invest game first. Our game gives everyone a great opportunity to learn more about investing, test the waters without failing, get some experience, and compete with a community of like-minded people. Much like Fantasy Sports’ bets, people choose the market winners in hourly, daily, and weekly games in our stock games.
Crypto craze
Young people are increasingly drawn to cryptocurrencies as a way to make easy money. But it’s a risky business. Their inexperience with investing makes them even more vulnerable to an already high-risk investment.
However, if the crypto world appeals to you no matter what, start with free coins to get the hang of this business.
There are lots of ways to freeload with crypto. The most popular one is to verify your account on Coinbase, watch a video about how the website works and answer some questions. By doing these simple steps, newcomers can earn XLM, COMP, CGLD, GRT, and NU ($30 in total). CoinMarketCap uses the same trick.
Airdrops.io is a good website that keeps you up to date with the latest airdrops — sending crypto to users’ wallet addresses to promote awareness of a new virtual currency.
You can earn crypto on Reddit too, based on the Karma you gain there. NANO is given on WeNano for simply visiting spots that users around the world create.
But the easiest way yet is to type “<name of the coin> + faucet” on Google. “Faucets” are websites that give away small amounts of cryptos to the users asking for it, e.g., freenanofaucet and Doge Faucet. But these give-aways most likely won’t last long. As of now, they are mutually beneficial to help cryptos gain in popularity and thus value. Starting with free crypto is a good way to test the waters, but don’t forget to get an e-wallet before going on a hunt.
Play with crypto in Fantasy Invest. Crypto games start every 15 minutes, breaking the records and attracting more and more devotees eager to dig into the crypto market.
Banking
Zoomers are heavily influenced by technology brands, including the onslaught of emerging fintech companies. This generation doesn’t use bank services like others.
First of all, most if not all of the bank experience for Gen Z happens online.
Gen Z is just starting on its financial journey and looking for a trusted brand to help them navigate it. Such brands must be easily accessible from any corner of the world and must care about their customers and provide excellent security services.
Since Zoomers spend most of their time online, they care for products way more than for experiences, but their focus switches when it comes to personal finances.
Another difference from previous generations is that Gen Z can easily use various banks and financial apps simultaneously for multiple reasons and purposes. People no longer wish to put all their eggs in one basket just for their convenience — combining the best offers is more valuable now. If one bank has the best IRA accounts but is not so good for high-yield savings, Zoomers will split their attention between two banks easily.
Let’s look at some of the top online banks — they are all providing different offers for people to use and combine if necessary.
- Axos Bank: Best Overall for Online Banking.
- Varo Bank: Best for High-Yield Savings.
- nbkc bank: Best for Combined Checking and Savings.
- Ally Bank: Best for Customer Experience.
- Quontic Bank: Best for Cash Back Rewards.
- Discover Bank: Best for Avoiding Fees.
- iGObanking: Best for CD Ladders.
Zoomers are overall more financially educated and aware than previous generations. Gen Z operates with mobile payments from a very young age; people want to know how to manage their money and make it work for them. Such awareness brings more services for teens on the market that cater to teens primarily. Copper — The Debit Card & Banking App, for example, provides teens with virtual cards to shop online; teens can earn money for referring friends and get an allowance from parents’ accounts in a snap of the fingers.
Learning
Learning to manage and increase your finances is a long process that is better to start from the earliest age possible. But you can’t passively absorb financial knowledge. While previous generations relied more on Wall Street magazine with complicated analytics and their almighty financial advisors with tons of degrees in Economics, Gen Z aggressively pursues financial intelligence on their own by actively doing it online.
The current market is excellent for soaking up knowledge in such a way because we have tons of courses and “kitchen-made” advisors to follow online and shape our vision of how to manage finances.
Courses
If you want to learn the basics of investing, including everything from “What a stock is” to “How to read the news the right way,” check out the “BUS-123: Introduction to Investments” taught by Frank Paiano, professor emeritus from the Southwestern Community College’s School of Business and Technology in Chula Vista, California.
Check the “Investing Master Class” videos to learn about investing without all the complicated mumbo jumbo you often hear when learning about finances. Moreover, you won’t need to read — it’s all video!
“Investing Basics for Millennials” from Skillshare may be your choice if you want to have a guide through investing for millennials. Are you underinvested? Scared to invest? Not sure what exactly to invest in? Dive into the enjoyable and fun course to solve all your worries!
Check our Fantasy Invest app Stories: there’s lots of useful info in those cards that will teach how to play, win and conquer the market the easiest way!
Media to follow
Reading online
Always follow clever minds and learn from their perspective on life. For your convenience, we created a list on Twitter with all the remarkable financial minds.
Wanna understand some terms and humor? WallStreetBets! — get them on Reddit, Twitter, and Instagram, or wherever you can find them.
Where to find some quotes? Go to Yahoo Finance and create the stocklist with all Fantasy stocks to follow.
Wanna have some fun? Check Instagram’s most popular finance meme account, run by an anonymous Wall Street banker, or the extremely hilarious and highly educational @notyourfathersbroker Instagram account.
Listening
Not a fan of reading? Listen! These podcasts are great for beginners: The Stacking Benjamins Show provides all the complicated info in simple terms in one place while Wall Street Unplugged, hosted by Frank Curzio, one of America’s most respected stock experts, and ranked the №1 “most listened-to” financial podcast on iTunes, gives valuable insights into the stock market.
Watching
Do you prefer to watch video lessons? Then check The Plain Bagel channel on Youtube and Ben Felix channel for great motion graphics.
Do you want to focus more on quick, actionable personal finance topics? Try The Popcorn Finance. It is operated by Chris Browning, whose podcast has been featured on Forbes, Nerdwallet, Vice, The AP, and more.
Wanna learn from a veteran trader? Tim Bohen will tell you everything from new trends to how to bargain the hottest stock on the Stocks To Trade Youtube channel.
Books
“A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing”
If you really want to know more, we recommend one book, which is definitely a must-read. Don’t worry; it’s not “Rich father. Poor father”. The book we love, “A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing.” It’s the best guide for you!
“The essays of Warren Buffett: Lessons for Corporate America.”
Learn from the very best! In the book “The Essays of Warren Buffett: Lessons for Corporate America,” one of the world’s most successful investors shares his insight about the relationship between corporations and their shareholders, which makes it ideal for stock market beginners.
“The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”
Read The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas Stanley and William Danko and The Automatic Millionaire by David Bach if you are starting your investment journey.
“How to Make Money in Stocks”
Same old reading — a national bestseller, “How to Make Money in Stocks” by William J. O’Neil is the seven-step guidance for maximizing gains. Classic, but still highly relevant.
“The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns”
Investing icon John Bogle died in 2019, but he left behind an impressive legacy you can explore in one simple book — The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns. If you like to read — it may be a smart book to look through.
The financial health for Zoomers
According to a study by the Pew Research Center, Gen Z is the most diverse and well-educated generation yet. They also are the most anxious about their finances.
Zoomers tend to start their preparations for a comfortable financial future earlier. And there are some basic tips to help you on this route: utilize online tools, build credit responsibly, and start investing early. Now is the time to educate yourself about the financial markets so you too can attain stock market glory.
