Covid has earned the many generations cohabiting the world at this time a small place in the history books—as survivors of a global pandemic. I say many generations because the binaries of who belongs in which one is quite stark these days.
While Gen-X found an opportunity to reconnect with their homes and families during the restrictions, the Gen-Z and younger millennials, glued to their mobile phones and gadgets, slipped more firmly into a digital life.
Having more time on their hands and nowhere to spend their pocket money or savings, the Gen-Z and millennials took to equity investing from the comfort of their homes as they attended online classes or worked from home over a year or so.
According to a report by Paytm Money, released in August 2021, 29 per cent of total investors were in the 18-25 years age group, while 31 per cent were in the 26-30 age group.
Outlook Money spoke to a cross-section of Gen-Z and younger millennial investors to understand what makes them tick. These young investors are ready to explore, experiment and adapt to enter uncharted territories. They are unapologetic about looking for new avenues—from the stock markets and mutual funds to cryptocurrencies.
The energy is infectious and quite in sync with the brazen equity markets, which have been touching new highs every other week, but it also points to a herd mentality, which comes with its own dangers.
To be fair, we can’t paint all young investors with the same brush as many of them are making informed decisions. But how much of these investment decisions are in sync with their life goals, many of which may not have been set as yet, is something that they will soon have to pay heed to.
Recognizing the different financial needs of this young generation, we felt it was the need of the hour to start engaging with our Gen-Z readers to address their concerns and issues to help them navigate the information overload. The Gen-Z Corner starts from this issue. So does a dedicated Explainer section to apprise our readers of the basics of personal finance as we move along on this journey.
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Home loan prepayment became a priority for a lot of people during the uncertainty spawned by the pandemic. Prepayment has its advantages as you can save drastically on the interest cost, especially because home loans are long term in nature, but if you don’t prepare well, you may be in for some shocks along the way. We tell you how to get past the stumbling blocks.
The wedding season is around the corner. Considering that weddings are money-intensive affairs in India, it makes sense to plan well to be able to trim away the extras and provide for any eventuality.
Among other stories, don’t miss our special Diwali package. While the elders of your families will ask you to scrub your homes clean to welcome Goddess Lakshmi, ironically, what no one will ever tell you is that decluttering your financial life can also help you create wealth. Make a start this Diwali!
Nidhi Sinha, Editor, Outlook Money; nidhi@outlookindia.com