Gen Z investors are making significant strides in the financial world, with 82% in the US starting their investment journeys before turning 21. This sentiment is echoed by 79% of Canadian Gen Z investors, 81% of UK-based young investors, and 63% of Chinese Gen Z investors.

A survey by American Express reveals that millennials and Gen Z prioritize financial goals, making it one of their top New Year’s resolutions for 2024. With a growing interest in finance, also known as Zoomers, this demographic is exploring various strategies to improve their financial status. These include AI-driven smart savings accounts, interest-earning lending apps, GameFi, DeFi money markets, and financial literacy and education.

While some of these concepts may seem intimidating, many Zoomers are using technology and online resources to simplify and incorporate them into their financial plans. This new approach helps them navigate and take advantage of innovative financial tools.

AI-driven smart savings accounts

Gen Z has easy access to technology, including smart savings accounts and financial tools. AI plays a crucial role in this financial revolution, with 85% of financial firms using AI and an expected growth of 23% by 2025. AI-suggested savings apps analyze spending patterns and suggest tailored savings strategies.

Platforms like Wally and Cleo simplify budgeting and offer financial insights through AI technology.

Interest-earning lending apps

Interest-earning lending apps, both centralized and decentralized, are popular among Gen Z for their simplicity and quick approval processes. These platforms offer innovative ways to grow savings, with the global digital lending market expected to reach US$795.34 billion by 2029.

P2P lending apps like 12 percent Club provide opportunities for users to earn returns on investments.

Earning through GameFi

GameFi combines gaming and finance, rewarding players with monetary incentives for playing. The GameFi market is projected to reach US$90.51 billion by 2031. Games like Axie Infinity and The Sandbox offer players financial opportunities while having fun.

DeFi money markets

DeFi money markets provide new avenues for staking, lending, and borrowing, appealing to Gen Z’s preference for digital and decentralized finance. Platforms like Scallop and Aave offer users opportunities to earn interest and borrow assets.

Financial literacy and education

Financial literacy is essential for Gen Z’s empowerment and effective wealth management. Resources for financial education can help them gain money management skills and prepare for their financial future.

Final thoughts

Gen Z investors are reshaping money management with innovative strategies and a forward-looking approach. By leveraging technology and education, they are redefining fiscal responsibility and securing their financial future.

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