Tech-savvy Gen Z prefers digital ways of investing to grow their money
World Savings Day, also known as Savings Day, is observed to empower people in saving money. Saving is futuristic, and all conventional methods of saving involve planning and knowing the right investments to make money grow. With new avenues for investing emerging, the current generation is exploring new ways to make their money grow. This new generation believes in and follows rapidly growing choices whether it be their food, fashion, trends, technology, etc. When it comes to savings and investments, they are also advancing quickly here. This generation understands the concept of saving, but apart from all conventional methods of saving, they are trying to experiment with more short-term options to explore.
Asked by senior economist Vijay Sardana about the savings and investment patterns of young people, he explained: âYoung people today are better educated, more tech savvy and want to take advantage of the present. This is why the investment planning horizons are not very long term. They are exploring new investment options to generate excess cash to meet their ambitious short-term needs beyond salary income. “
Adding to this, he said: âYoung people looking for investment plans need to ensure liquidity. This is why digitally traded assets are preferred by them and physical gold is no longer charming beyond the occasional gift. “
Here are some new age investment options that people are looking for:
Investing in virtual gold may seem unusual and dangerous to the older generations, but not to the generation who are completely cashless now. They use the online payment method to even buy a packet of milk. Purchasing virtual gold is completely safe and does not charge any additional fees like “charging”. This method does not give you possession of physical gold at any time, so there is no chance of loss or theft.
Bitcoin is another controversial mode of investing. It is argued that cryptocurrency is not the safest type of investment tool, but keeping all of these debates aside, this new generation is vigorously buying bitcoins hoping that they will get good returns an once their value increases. Like the stock market, bitcoin is a risky business as well, but for those who love cryptocurrency, it really is a game of short-term profits.
The most appealing aspect of cryptocurrency to young people is that it is not managed by any central agency and is not associated with any country. So it is a must-have option for young people who want to buy goods online and make cheap international payments using some mobile phone apps.
Investment banker and political contributor Saket Mishra says, âThe big change for Gen Z is that they can access a much larger set of investments, primarily through digital replicas. This means better diversification and yield possibilities, but at the same time, it requires a deeper understanding. For every bitcoin, there will be cryptos that reach zero.
âGen-z prefers smart apps to effectively measure and manage its investments, rather than going to banks to sign gold bonds or to a jeweler to buy real gold. Therefore, innovative investment tools that enable real-time investing in virtual gold, futures, the stock market and cryptocurrencies are the future, âsaid Kanishk Gaur, founder of the ‘India Future Foundation.