Falling average wages, average student debts of £50,000, inflation and sky-high property prices – investing is not something that is relevant in the minds of millennials. Like any change in circumstance, perspective is important. The following looks at the negative associations millennials have with the world of investment and how they can be overcome.
Do I Look Like An Investor?
60% of female millennials picture an “old, white man” when thinking about who an investor is. Research highlights that the image of an investor has become a limiting factor, leading to only 9% of millennials seeing themselves as such.
At Homegrown, we believe that times have changed, and the only step you need to take to become an investor is to simply invest. In fact, an overwhelming amount are technically investing, just in experiences, such as concerts or travelling. The return may not be financial, but a feeling of satisfaction and connecting with the world around them.
Don’t You Need Money To Invest?
Research indicates that over 40% of millennials do not have enough money to invest. After all, they have the lowest bankcard balance and average income.
Businesses are evolving to eclipse the current difficulties facing millennials, with a large deal of help from technology. Disruptive businesses like Homegrown are flipping financial norms on their head, so that you don’t need to use a year’s salary to start investing.
Millennials are financially aware, having grown up with the financial crisis and the onslaught of financial headlines that followed. They are concerned about their financial future and are not prepared for retirement. Risk-averse millennials are avoiding the stock market and investment.
Risk is part of investing, no matter what type of investment it may be. It is up to the investor whether it is worth taking the chance. Horror stories millennials hear about failed profit-missions may force them to look at their investments more wisely. What investment opportunities have less risk than others? What are the projected outcomes and where did those conclusions come from? How can you ensure that your money has the best chance to succeed?
The Choice Dilemma
Millennials like the idea of choice, but too much can put them off. In fact, 93% believe that if they were to invest, being able to decide where their money goes would be of paramount importance, but having an unlimited list is overwhelming.
On the flip-side, millennials should take advantage of the fact that so many barriers have been knocked down. A modern day investor can choose where to invest with a small amount and learn a huge deal as they travel along their investment journey. There is an increased focus on ethical investments for millennials, which shows that people are increasingly caring about making a difference, and one way to do that is through investing in certain causes, such as charitable projects or housebuilding to face the housing crisis, something that Homegrown has been set up to help. If you can learn the ropes of investing now, just think of the possibilities when you are at the peak of your career and earning more.