Tue, 09 April 2024 | cryptocurrency demographics real estate
A recent survey highlights a stark contrast in asset ownership and financial strategies between younger and older Americans, shedding light on the evolving landscape of personal finance. The 2024 Policygenius Financial Planning Survey reveals that millennials and Gen Z are almost as likely to own cryptocurrency as they are to own real estate, marking a significant shift in how these generations approach wealth accumulation.
Despite owning just 74 cents for every dollar of wealth that baby boomers amassed at the same age, millennials (ages 27-42) and Gen Z (ages 18-26) are diversifying their financial portfolios in unconventional ways. Cryptocurrency emerges as a popular asset, with 21% of these younger cohorts investing in digital currencies, nearly matching the 20% who own real estate. This trend underscores the changing perceptions of investment and asset ownership among younger Americans, who are also embracing financial "hacks" and strategies popularized through social media.
The survey, conducted online by YouGov for Policygenius from October 16 through 19, 2023, polled 4,063 U.S. adults and revealed that younger generations are more open to experimenting with financial hacks. Sixty-two percent of millennials and Gen Z have tried at least one financial strategy such as the "no spend challenge" or extreme couponing, compared to just 36% of Gen X (ages 43-58) and baby boomers (ages 59-77).
Interestingly, the survey also found that Gen Zers are more inclined towards cryptocurrency (20%) than traditional investments like stocks (18%), and 14% have experimented with "infinite banking," a strategy involving borrowing against the cash value of a whole life insurance policy. This inclination towards newer, riskier investment forms and financial strategies is more pronounced among younger generations, with 8% of them turning to social media first for financial advice, compared to a mere 2% of Gen X and baby boomers.
Myles Ma, a Certified Personal Finance Counselor at Policygenius, commented on the findings, noting that while younger generations are showing a willingness to take financial risks, perhaps driven by the current housing shortage and other market obstacles, traditional investment avenues might offer more stability in the long run. "Buying a house may be out of reach for many at the moment, but taking big financial risks isn't necessarily going to help," Ma stated. He emphasized the importance of more time-tested options like stocks, bonds, and life insurance, which can provide financial security and coverage for living expenses.
The survey results, which have a margin of error of +/- 2%, highlight the varying financial attitudes and practices across different generations, reflecting broader economic trends and the influence of technology and social media on financial decision-making.