According to a number of studies millennials are generally doing a great job of stashing away money for their futures.
Barclays claim that almost half 47 percent of those aged between 18 and 24 prefer to put their money into a current account with only 5 percent of this age group opting to invest.
Older millennials those aged between 25 to 34 are more likely to invest than their younger counterparts with nearly one in five having some investments. Over a third of those surveyed for Barclays claim that not knowing enough about investing is one of the biggest barriers that stops them from giving it a go. Whilst another third aren’t comfortable with the level of risk involved and 27 percent say they fear losing everything.
Schroders have found that millennials have a bias towards short term investing only looking to hold their investments for just over two and a half years often because they are investing for immediate financial requirements like a deposit on their first home. Investing for the most part is a strong way to grow your money for long term goals.
The advantage if you’re a millennial is that you have time on your side particularly when it comes to things like retirement. So if you invest and stay invested you should be able to ride out the stock market’s ups and downs and hopefully achieve better returns than if you just kept all of your money in cash.
If you’re risk averse start out by investing a little so you can grow your confidence and your knowledge before your financial situation improves and you you’re in a position to invest more. If you invest in funds and investment trusts that have a focus on ESG (that’s environmental social and governance factors) this means that the shares and bonds contained in the fund have passed stringent tests over how sustainable the company is.
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