Young people have it tough in a lot of ways, financially speaking.
Housing is expensive. Student loans. Inflation. The cost of daycare. Etc. Etc.
I know there is worry of disillusionment and financial nihilism among the Gen Z cohort but I have faith in young people.
This group already has some things figured out.
The Wall Street Journal shows people under 30 are taking advantage of tax-deferred retirement accounts:
The share of IRA accounts held by those under 30 has nearly doubled in the last 10 years.
Here’s some more data:
Among Gen Z investors, total IRA contributions grew 65% year-to-year in the first quarter of 2026, compared with a 31% increase for millennials. Three-quarters of people age 35 and under chose Roths, compared with less than half in that age group a decade ago, according to Fidelity Investments.
This is great news!
Young people are saving and investing for their future. If they don’t interrupt the compounding in these accounts, the wealth will be wonderful many decades from now.
The great thing about qualified retirement accounts is that they are perfect vehicles for long-term investments… like stocks!
Young people have developed a taste for stocks.
Just look at the change in value of stocks owned by people under 40:
It’s up 3x since 2020. The share of equities owned by people under 40 is still relatively low (6%) but it has doubled this decade.
That’s progress.
Here’s a breakdown of household stock market ownership by various age groups:
Now here it is by income level.
If you wanted to take a glass-is-half-empty view of the world, you could say young households and low income households (which have a lot of overlap) have a much lower level of ownership than older people and those with higher incomes.
That’s true of course.
However these numbers require context.
I wrote a whole chapter in Risk & Reward about the history of stock market ownership in America.
In the early-1950s just 4% of households owned stocks in any form. By the early-1980s it was just 19%. It wasn’t until the 1990s that things really took off in terms of the masses buying stocks.
From a glass-is-half-full perspective, young and low income households now have a higher ownership in stocks than the entire country did back in the day. The numbers are moving in the right direction even if the top 10% still owns most of the shares.
Of course, part of the reason more young people are investing in the stock market is because housing is so expensive. If you’re not building equity in a home or saving up for a down payment, there’s more disposable income available to invest in equities.
But this is also about a breaking down of the barriers to entry in the financial markets.
Technology makes it easier to invest. Fees have come down. Minimums are non-existent. Investors are more knowledgeable.
We need more people invested in the stock market. The earlier the better.
This is great news for young people.
Further Reading:
Are Young People Screwed?
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.
References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.
The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers
Please see disclosures here.