Millennials in Canada missing out on investing
Studies reveal that Millennials are the largest component of Canada’s labour force. As on 2012 Canadian households below the age of 35 years held over $824 Billion in Assets. The Savings and investment decisions that these millennials have a major impact on not only on themselves but for the entire Canadian Capital markets and the economy as a whole. Let us see some of the major trends in the way these millennials save and invest.
Many of them save, but few invest
It is being seen that 4 in out of every 5 saves, but out of them only 1 in every 2 are investing. Many of these young people start saving from a very early age. This is in spite of increasing housing costs, tuitions, and other expenses. However, this high savings rate has not led to high investment rates.
Why they are not investing?
- Most have other financial priorities
In a recent study, it was seen that as many as 68% of the millennials do not invest stating reasons that they have other financial priorities, whereas 53% cited debt is the major obstacle for them against investing. For many of them, home ownership is the major financial priority for them. Many of them consider saving cash for a down payment on home ownership is more important than investing.
- Many do not know enough about investing
The other reason why many of these young people are not investing is that they do not know enough about it. It is being observed that 6 out of about 10 millennials do not know sufficiently about investing. On 14% of them are very familiar about investing and thus a majority of them stay away from investing in Canada.
- Some fear losing money while investing
Of the many reasons that the millennials are missing out the big investment opportunities is that almost 6 out of 10 are scared about losing money while investing in the financial markets. This is in spite of the fact that Millennials owing to their young age is more suited to make significant gains from long-term investment. They, therefore, miss this great opportunity owing to their internal fears.
Digging deeper
It is true that owing to the latest financial technologies in use now it easier to access information on investing and thereafter to invest even if it be in small amounts, low savings. However, reasons like rising transit, shelter, and education costs, together with the growth of precarious employment, make it more difficult to save large amounts. At the same time, it becomes tougher to plan for the future. Thus this may be the reason why the new generation on the great opportunity to invest in the capital markets.
You must not miss out
In case you happen to fall in that category of being a minnellian you must not miss out on the great opportunity of investing. You need to realize that even the financial markets much like all the other markets move in cycles. However as a young investor since you have time in your hand, with long terms investments you stand in a good chance of making substantial gains. So along with increasing your savings, increase your investments high as well.
