The verdict is in – young investors are much more savvy today than they used to be. Or maybe they’re not and we just hear more success stories due to information saturation from the Internet and cable television. Maybe there’s another reason the younger set is more attuned to the Internet – they were sitting around the family’s kitchen table in the late 1990’s when mom and dad were making a killing, and taking a subsequent soaking, in the dot com boom. They began to realize the possibilities.
And the smart young investors are using the power of the Internet to multiply their effort. Take Chris Stallman, 21 years old and owner/publisher of the mexico pharmacy website www.TeenAnalyst.com, which he runs from his University of Michigan dorm room. Or Sarah Harper, who wants to be a CPA when she graduates from Hampton University and runs an investment club she started on campus that now has a 100 members. Harper offers her insight on the topic. “Kids want to know: How can I become a millionaire with just an average salary?”
An interesting tidbit about young investors is that they are graduating from college with more bills and debt than ever before BUT more are also investing earlier than their parents did. Student Monitor, a marketing firm that specializes in young people, found that 23% own savings bonds, 13% individual stocks, 11% bonds, and 7% mutual funds. Hmm, where in all these numbers is the number one return on investment in America, income property? Sigh, guess we still have some work to do when it comes to financial education.
The future may not be so bright we have to wear shades just yet, but it does appear, for the time being, that the younger generation is finally beginning to pick up on the importance of investing. Save early and often and you can set yourself up for an incredible life style later.
Onward and upward!
The Young Wealth Team
Flickr / Schroder+Schombs PR_Brand | Media | Lifestyle