“We’re not absolutely dead set that we have to get a property and it’s made us think about other ways to approach things like investments and where to put our savings as part of that.”
Mr Child likes the focus on ethical choices in the Goodments app, but warned there is still risk involved in investing.
“You should be informed that things can be outside of your control and you can lose a great amount of money or all your money, which wouldn’t happen with a savings account,” he said. “But if you have a longer-term view on what your money is doing, the younger generations in particular, if we’re talking about cities like Sydney and Melbourne where the route into the housing market is difficult and where you traditionally invest in brick and mortars to grow wealth, they should explore investing – but be well-informed about the potential downside as well as upside.”
Two years ago Mr Child invested $10,000 in the share market and his money has already doubled to $20,000. Picture: SuppliedSource:Supplied
Younger investors abandon property market
According to the latest ASX Australian Investor Study, just like Mr Child close to a quarter of all investors started investing in the past two years, but many were aged 25 or younger. Women are now making up nearly half of all new investors, the study also found.
Douugh founder and CEO Andy Taylor said millennials and Gen Zs are gravitating in record numbers to the share market to help them grow their savings and build wealth.
“Young people realise buying property is no longer an option, so they are turning to shares to make their money work harder and secure their futures plan,” he said.
CoreLogic data comparing national dwelling values and average incomes found low income workers are only able to afford 17.6 per cent of available housing stock in Australia – or just 3 per cent in Sydney and 4 per cent in Melbourne.
Teen gets started early in stock market
On the Gen Z side of things there is NSW teen Aaron Marcellino. The 17-year-old is only in year 12, yet under the guidance of his dad Dave is already trying to get ahead through the stock market, and aims to use shares to help him buy property in his early twenties.
He’s invested $2000 into the share market so far.
“I think it’s something everyone should be thinking about and it’s a good time to start around 16 or 17 when you get your first job, so you can invest money so you have some sort of future,” he said.
Aaron Marcellino, 17, is already investing in the stock market, with help from his dad. Pictured: SuppliedSource:Supplied
The savvy teen has invested some of the money into a simple dividend stock for the long term, while the rest was to buy up shares at National Australia Bank.
“Probably I’m going to hold onto the bank investment, but the other one I’m trying to make more money for a property,” he said. “It would be good to have as another investment and that would make more money moving forward again.”
While he thinks everyone his age should start investing, he admits he has never had a serious conversation with his friends about the topic.
But he is already thinking that he will be set up for retirement by “playing” the investment game long-term.