We know the familiar script all too well: Graduate, secure a job, get married, buy a house, then start a family. But the last five or so years have left people feeling economically rattled — enough so that some of these milestones are getting delayed, re-ordered or pushed out altogether, especially for the younger cohort.
According to Breanna Seech, CFP at Mariner Wealth Advisors, her Gen Z clients are prioritizing investing over more traditional financial milestones. Recent data backs this up, too: Researchers at JPMorganChase Institute found that, from 2015 to 2024, the share of 25-year-olds using investment accounts jumped from just 6% to 37%. Stocks have become more attractive and accessible than home equity, the researchers note.
Here’s what we can learn from these next-gen investors, plus Seech’s tips for anyone trying to reach a financial goal, no matter what it may be.
What we can learn from Gen Z
It’s not entirely surprising that Gen Zers aren’t really focusing on traditional financial milestones. “They crave control and financial independence and seem less open to the risk of starting families and making large purchases at a young age,” Seech explains. Turning that attention instead to investing isn’t a bad move.
Investing in stocks, index funds and other assets helps you build wealth and beat inflation so you don’t erode the value of your money. Investing is how many people fund their retirement goals and pay for many other big expenses.
And while the barrier to owning a home has gotten higher, investing has gotten more accessible over the years with robo-advisor platforms like Betterment and commission-free trading platforms like Robinhood.
Betterment
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For example, Betterment doesn’t require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. Premium Investing requires a $100,000 minimum balance.
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Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.
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Investment vehicles
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Investment options
Stocks, bonds, ETFs and cash
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Educational resources
Betterment offers retirement and other education materials
Terms apply. Does not apply to crypto asset portfolios.
Pros
- No trade or transfer fees
- Good for automated investing
- Customizes users’ portfolios around their financial goals, timeline and risk tolerance
- Users can assign specific investing goals (short- and long-term) to each portfolio and invest using different strategies (less and more risk)
- Quick and easy to set up account
- Able to sync external retirement accounts to your Betterment retirement goal so all your accounts are in one place. Premium plan users get unlimited access to a financial advisor (otherwise, one-time advisor consultations cost a fee ranging from $299 to $399)
- Advanced features include automatic rebalancing, tax-saving strategies and socially responsible investing
Cons
- Base price for investing accounts is $4/month – recurring monthly deposits totaling $250, or total Betterment account balances reaching $20,000, automatically switch you to an annual price of .25% of your investing account balances
- Premium plan requires $100,000 minimum balance
Robinhood
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum required to open an account or to start investing
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Fees
Fees may vary depending on the investment vehicle selected. Commission-free trading; regulatory transaction fees and trading activity fees may apply
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Bonus
Robinhood will add 1 share of free stock to your brokerage account when you link your bank account and fulfill the conditions in your promotion (you’ll be able to keep the stock or sell it after 2 trading days)
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Investment vehicles
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Investment options
Stocks, ETFs, options trading, fractional shares, IPOs, plus certain cryptocurrencies through Robinhood Crypto (depending on where you live)
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Educational resources
Pros
- $0 minimum deposit to open an account and invest
- Commission-free trading
- Free stock welcome bonus
- Plenty of investment options for active traders
- Variety of accessible learning tools
Cons
- Fees outside of commissions may apply
- Users rely on their own knowledge when building their portfolio
Tips for reaching financial goals
Seech recommends a handful of tips for anyone striving to reach a financial goal:
- Build up an emergency fund of three to six months’ worth of living expenses, so you avoid going into debt
- Aim to contribute 10% to 15% of your money into retirement accounts
- Automate your savings and investments
- Build in discretionary spending to your budget
Financial planning becomes a lot easier when you have a dedicated monthly budget and can track what comes in and what goes out. This way, you know exactly how much you can automate for savings, and how much you can comfortably spend leisurely.
Monarch helps you categorize your expenses, as well as track your net worth and goals. You Need A Budget (YNAB) is another popular budgeting platform because it uses the zero-based budgeting method where you must assign every dollar a job. This lets you make sure you’re intentionally directing your income toward a spending category whether it’s utilities and Wi-Fi or savings.
Monarch
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Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
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Free trial
7-day free trial is available before subscribing
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Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
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Categorizes your expenses
Yes, but users can modify
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Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
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Security features
Utilizes industry-leading security practices, according to Monarch’s website
Pros
- Easy-to-navigate money-tracking dashboard, including a net-worth tracker
- Easily syncs to your bank, credit cards and other financial accounts
- Users can add collaborators for free
- Seven-day free trial
Cons
- Subscription is pricier than competitors
- Recommendations in the “advice” tab are generic
You Need a Budget (YNAB)
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Cost
34-day free trial then $109 per year ($9.08 per month) or $14.99 per month (college students who provide proof of enrollment get 12 months free)
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Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the “zero-based budgeting system” where no dollar is unaccounted for). Every dollar is assigned a “job,” whether it’s to go toward bills, savings, investments, etc.
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Categorizes your expenses
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Links to accounts
Yes, bank and credit cards
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
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Security features
Encrypted data, accredited data centers, third-party audits and more
Pros
- Offers a 34-day free trial, and college students get 12 months free
- Designed to help you get out of debt
- YNAB website claims average user saves $600 in their first two months and $6,000 in their first year
- Syncs to your bank accounts and credit cards
- Users can set goals, customize spending categories
- Offers educational resources, such as budgeting advice and free, live workshops
- Personal customer support
- Security features include encrypted data, accredited data centers, third-party audits and more
Cons
- Costs $109 per year or $14.99 per month
- Customer reviews note that it takes longer to set up than other apps
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