Schwab Investing Survey: Gen Z Gets an Early Start as Confidence Rises

Younger Americans are investing earlier. On average, Gen Z—generally described as those born from 1997 to 2012—began saving and investing at 19 years old. Baby boomers—born from 1946 to 1964—didn’t start until 35, on average.

The source of this insight is the latest Charles Schwab Modern Wealth Survey, which sampled 1,000 Americans ages 21 to 75, plus an additional 200 Gen Z members, on their investing tendencies. Despite their early start, Gen Zers, not surprisingly, had the smallest percentage of investors, at 45%, compared with 54% of millennials (born from 1981 to 1996), 58% of Generation X (1965 to 1980), and 63% of baby boomers.

The survey showed rising optimism about investing: 60% of respondents said they feel they’re in a better position to achieve financial goals than generations before them. Gen Zers credited easier access to investing and having more ways to invest for their confidence. “This is a multidecade evolution where more and more...individual investors have access to capital markets, to stocks, bonds, cash to build wealth,” says Rob Williams, Schwab’s managing director of financial planning.

That access doesn’t extend to using social media influencers for advice, which 76% of all respondents rejected. “Finances are a complex place, and when you’re reacting to social media and working to try to cut through the noise, that can be very difficult,” says Williams.

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Last Week

Markets

French President Macron called for a snap election after right-wing victories in European Union elections; French bonds and bank stocks sold off. The International Energy Agency predicted big oil surpluses by 2030. Stocks rose before Wednesday’s twofer: May inflation data and a Federal Reserve rate call. Inflation cooled to 3.3%; the Fed held rates steady. Stocks, except tech, finished mixed. On the week, the Dow industrials lost 0.54%, the S&P 500 rose 1.58%, and the Nasdaq Composite was up 3.24%.

Companies

At its developers conference, Apple revealed a deal with Open AI to integrate ChatGPT into its devices. Elon Musk threatened to ban Apple at his companies as a security risk and dropped his lawsuit against Open AI for abandoning its original mission; Tesla shareholders approved his roughly $48 billion pay package. Oracle had so-so results but announced AI deals with Google, Microsoft, and OpenAI. The EU boosted Chinese EV duties; China promised retaliation. KKR, Crowdstrike, and GoDaddy will join the S&P 500.

Deals

National Amusements’ Shari Redstone ended talks with Skydance Media over a deal for Paramount Global. The stock sank. Possibly next up, reported The Wall Street Journal: Edgar Bronfman, backed by Bain Capital and Hollywood producer Steven Paul who was lining up financing for a bid...Elliott Management with a $2 billion stake in Southwest Airlines said it wanted to replace the airline’s leadership and strategy.

Next Week

Tuesday 6/18

The Census Bureau reports retail sales data for May. Consensus estimate is for a 0.3% month over month rise to $707 billion. Retail sales were flat in April compared to March. Excluding autos, retail sales are expected to increase 0.2%, even with the April figure.

Wednesday 6/19

Equity and fixed-income markets are closed in observance of Juneteenth National Independence Day.

Thursday 6/20

The Census Bureau reports new residential construction statistics for May. Economists forecast a seasonally adjusted annual rate of 1.4 million privately owned housing starts, 40,000 more than in April.

Friday 6/21

S&P Global releases both its Manufacturing and Services Purchasing Managers’ Indexes for June. The consensus call is for a 51 reading for the Manufacturing PMI and a 54.6 for the Services PMI. This compares with 51.3 and 54.8, respectively, in May.

The National Association of Realtors reports existing-home sales for May. Expectations are for a seasonally adjusted annual rate of 4.1 million homes sold, roughly even the April data.

The Numbers

1.3%

Percentage of 68 million U.S. white-collar workers promoted in the first quarter, lowest in five years.

$40 T

Total U.S. retirement assets in the first quarter, up 4.3% from the prior quarter, and above 2021.

$17.5 T

Cash Americans have in commercial bank accounts, with the average savings account getting just 0.45%.

$4.5 B

Amount crypto firm Terraform Labs agreed to pay to the SEC, one of the largest civil-fraud penalties ever.

Write to Robert Teitelman at [email protected]