Ways Millennials Invest Differently Than Their Parents
Millennials currently make up more than one-third of the US workforce and are expected to swell to nearly half the global workforce by 2020. Not only does that give them a great deal of purchasing power, but it also gives them significant clout in the world of investment as well. In fact, the purchasing and investment power of millennials is so strong, they are completely changing the world of investing.
It should come as no surprise that the values of millennials are very different from those of their parents and grandparents. There may be no greater evidence of this than where millennials are putting their money. While their grandparents may have bought war bonds and their parents invested in emerging corporate giants, millennials are taking a very different approach. Here are three of the main focuses of millennial investing.
As consumers, millennials care as much about the values of the companies they purchase products from as they do about the products they are purchasing. This is also true of the kinds of investments they make. A Fidelity Charitable study found that more than 75% of affluent millennials have invested in some type of investment that simultaneously generates a return as well as offering an environmental or social benefit. Some of these businesses and companies are much smaller than the businesses and companies their parents and grandparents preferred to invest in, but size does not seem to matter as much to millennials, impact does.
By now, almost everyone should be aware that millennials are passionate about protecting the environment. A 2017 survey found that a whopping 95% of affluent millennials prefer to make investments that will have a positive impact on the environment. These include investments in business and companies providing clean energy solutions and smart tech companies like Tesla. Some other beneficiaries include institutions creating clean energy solutions such as solar and wind power.
Considering that millennials have been raised on technology more than any other generation, it should also come as no surprise that they would also invest in it. Here again, however, the technology solutions they are most likely to invest in are those which have some kind of social or environmental impact, in addition to driving the world forward.