How Millennials Are Investing

Much like the generation that grew up during the Great Depression, studies have found millennials are very hesitant about investing their money. Many millennials graduated from college just in time for the 2008 recession and struggled to find work in an uncertain job market, facing long periods of unemployment. Those who could find jobs were often forced into taking low-paying jobs just to get by, and between student loan debt and other necessary expenses they simply didn’t have money to invest. Others who weren’t fighting for jobs likely witnessed the impact the recession had on their parents’ investments and have decided not to take the same risk. Instead, many millennials are preferring to keep their money in something they feel is more secure — cash.

Millennials and Investing

Currently, adults aged 21-29 are typically putting about 28% of their money in stocks and keeping about 52% in cash. Non-millennials typically have about 48% of their portfolio invested in stocks and only about 23% in cash.  Although keeping their money out of the stock market may seem like the safer choice, but the main drawback to saving that way is that money can’t grow if it isn’t invested, which is going to make saving for retirement even more difficult for millennials who already had the disadvantage of entering the workforce at a very turbulent time. The millennials who haven’t been scared out of putting their money in the stock market tend to be more conservative investors and view their investments as being sort term.

Millennials who do consider investing also prefer to get advice from their parents or a reputable investment counselor. If they’re going to take the risk of investing, they want the guidance of someone they can trust to make sure their money is being invested as wisely as possible.


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