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Gen Z’s Impact Investing: The Future of Socially Responsible Investing

Generation Z is considered the generation to save humanity. A wave of changemakers, activists, and get-stuff-done people. But how do they feel about investing? The solution to transitioning to a just, equitable, and sustainable future lies in the power of Gen Z investing. Read on to learn how!

Why focus on Gen Z investors?

Generation Z includes people born between 1997 and 2012. Our generation is becoming the young adults who will very soon take over to become a leading player in financial markets. Paying attention to Gen Z investment trends will help us understand where our power lies and what to expect from the future of financial activism. 

What investment trends do we see in Gen Z?

Gen Z is more socially and environmentally conscious.

Research from Mckinsey & Company indicates that “Generation Z consumers believe companies have a responsibility to address environmental and social issues.” Nasdaq backs this; Gen Z is the most educated generation, often also with better-educated parents. According to Forbes, two examples of social issues that are top in their minds are “racial justice” and “the environment,” as they are taking actions to demonstrate their wills and make conscious choices. Given the rising potential of Gen-Z investors, we can expect a rise in people voting with their dollars, making financial investments with expectations of not only return but also a decent performance on ESG factors and impact.

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Gen Z is comfortable using digital investment solutions.

Growing up in a time of massive technological advancement, Gen Zers are sometimes called “digital natives.” Their point of view is partially influenced by the content they receive and experience from the internet and, in particular, social media. The study by Nasdaq detects some patterns in Gen Z financial literacy. It suggests that Gen Z is comfortable using social media and traditional platforms as the primary source of investment research. They are well-educated, engage in less-risky financial decisions and fully integrate digital technologies like smartphones into their lives. This report signals that digital solutions are crucial for upcoming investors to make the most of their money and generate wealth alongside impact. 

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Gen Z is beginning its financial journey, which is prime time to start investing.

Fortune indicates that although Gen Z has unprecedented economic power, there is hesitancy as people lack knowledge and confidence in investing. The financial literacy gap must be overcome to unleash the full potential of the upcoming generation. As the 2022 Investopedia Financial Literacy Study shows, we must support and empower Gen Z to be confident in making financial decisions. As the study highlights, only about 50% are confident in their financial knowledge of spending and saving money. Still, many are starting their investment journey as they begin to have a steady income. Now is the prime time for Gen Z to start investing as they work to achieve financial independence.  

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Is FLIT Invest for Gen Z investors?

FLIT Invest is for everyone, but based on these investment trends our app particularly suits Gen Z investors! Quoting Michele Parmelee, Deloitte Global Deputy CEO and Chief People & Purpose Officer, “Organizations that are not aligned with millennial and Gen-Z values risk losing favor with this large and increasingly influential cohort.” For Generation Z, FLIT Invest is ready to push impact investing to the next level!   

FLIT Invest is an automated impact investing app that enables everyday people to invest in solutions for today’s crises. Whether investing in Gender Equality and Climate Solutions or divesting from Fossil Fuels and Private Prisons, users can personalize their portfolios according to their values. All this with just a $10 account minimumImpact investing is about doing good while doing well; invest today and grow your wealth guilt-free.  

Footnote 1: Content is for informational and educational purposes only. Any views, strategies or products discussed may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. The information contained herein should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. 

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