Every generation has something valuable to share from their experience, and it’s wise to listen to the advice of those who have different outlooks on life. This doesn’t omit the younger generation – though they may not have as much life experience, they have their own unique way of seeing the world and valuable contributions and perspectives to add to the conversation.
So, what can we learn from today’s youth about investing? While they may not be the investing-savvy Warren Buffets of today, they will drive the markets of tomorrow. Think about Snapchat, a social media app where you can send pictures back and forth and post video stories. Snapchat was created in 2011 by a group a college kids who thought it would be a fun way to communicate with friends. While it did not seem worthwhile or appealing to older audiences, younger demographics loved it and over the last decade, it has grown into the widely successful app we see today. In fact, in September 2021, Snapchat’s stock prices hit an all-time high at over 400% of its IPO pricing, growing from $17 per share to $83 per share.
Along with new apps and digital trends, children and young adults today are very in tune with celebrities and influencers, who are always on the forefront of marketing new products and ideas. Jim Cramer is a TV personality, author, and former hedge fund manager who now has his own show on which he gives helpful tips and advice on investing. For several years, he was such a prominent figure in investing that his effect became known as the Cramer Bounce. Stocks that he recommended would increase anywhere from 3% to 7% as his listeners eagerly followed his suggestions. The same phenomenon is being seen in young demographics as they follow leading celebrities and influencers. Younger audiences are particularly in tune with modern developments and are on the front lines of marketing for new products. As such they have unique awareness of and exposure to potential investment trends growth opportunities.
All of this isn’t to tell you to immediately invest in Snapchat (most social media sites are actually doing poorly right now because of the recent Apple privacy updates), or to subscribe to all the current influencers. Rather, it’s a proposition to pay attention to younger generations and what appeals to them. Just because it may be new, different, or seem like “just a trend” doesn’t mean it should be written off immediately. Of course, it is not wise to go investing in every fad or trend that you hear young adults talking about, but don’t write it off as ridiculous right away simply because it’s coming from a younger demographic. Take the time to be curious, look into something that’s different than the status quo, and be willing to hear from a younger person’s perspective. The children of today are the investors of tomorrow. They are a new wave of consumers, and when they call, companies will listen, as they have for years past. We can learn to see through their eyes and understand what excites them, what drives them, and what dreams they now have for the future that just might inform the company/investment decisions of tomorrow.
Written by [[Elizabeth Beckham, Wealthy Habits Intern 2022]]https://wealthyhabits.org/our-incoming-interns-2022/
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