In years past, Americans would typically start investing in the stock market once they entered their 30s.
Baby boomers reportedly began investing at an average age of 35, while those who belong to Gen X began investing at 32 on average, according to the 2024 Schwab Modern Wealth survey (1). Millennials seemed to be much more eager to enter the market, as this generation typically started investing at an average age of 25.
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And then there’s Gen Z, which began saving and investing at 19 on average. Fresh out of high school, teens and those in their early 20s appear to be diving into stocks, ETFs and even crypto with enthusiasm; chasing returns, testing strategies and reshaping smart investing in a volatile market.
Some are more cautious than others, but they’re coming in strong, and they’re doing it with the mindset of seasoned investors.
How Gen Z investors handle market volatility
The Wall Street Journal spoke with a few savvy Gen Z investors, some of whom are taking it slowly, while others are already sitting on six-figure portfolios (2).
Take 21‑year‑old Max Provencher, for example. Provencher — a senior at Bentley University who is leveraging a $20K‑plus portfolio to land interviews at investment firms — funds his trades with summer jobs, dividing his assets across individual stocks, mutual funds and a money‑market buffer. He started investing at the age of 16 when his father gave him $1,000 to start.
Due to this year’s market volatility, Provencher decided to diversify his portfolio. After the stock market dipped following President Trump’s sweeping “Liberation Day” tariffs, Provencher invested in a small-cap fund to help him weather the storm.
And then there’s 17‑year‑old Julia Greene, who asked her father to open a brokerage account for her when she was a freshman in high school. With a $2,000 portfolio, Greene’s goal is to familiarize herself with the stock market at an early age in order to become comfortable with investing once she starts working full time.
“I just was really interested in how so many people could really change their life and reach their goals a lot sooner with investing,” Greene shared with the WSJ. “Saving alone isn’t enough anymore to keep up with high prices.”
Greene has diversified her portfolio by allocating money across three ETFs: one focused on dividend stocks, another on tech stocks and a third that’s focused on emerging-market stocks.
Michael Paladino, a 27‑year‑old from Florida, has about $450,000 in a portfolio that features tech and artificial intelligence stocks. He says his investment journey began when he learned about the power of compounding returns in an economics class in college.
“Five dollars a day and you could retire a millionaire,” said Paladino.
Mary Esposito, a 22‑year‑old in North Carolina, built a knitting business in high school, which allowed her to invest her profits. Esposito now automates $1,000 a month to her Roth IRA and picks stocks like Microsoft, Nvidia and Apple for the long haul. She looks over her accounts about once a week and tries not to overreact to market downturns.
Among the Americans in Gen Z between the ages of 18 and 25, about 56 % report holding an investment of some kind, according to a report from the CFA Institute (3).
“Of the Gen Z-ers who invest, 55% are primarily invested in cryptocurrency, 19% of investing Gen Z-ers hold only cryptocurrency assets, 41% have money in individual stocks, and 35% invest in mutual funds,” states the CFA Institute’s report.
If you’re a youthful member of Gen Z, time is on your side when it comes to investing. Starting young can give you decades of compounding returns, and savvy young investors like the ones mentioned above appear to be well aware of this. And even if the market takes a temporary dive, a youthful investor can afford to ride out a 20 % dip considering they have a longer runway for a rebound.
According to YouGov, social media plays a big role in how Gen Z-ers put together their portfolios; one in five say it influences their choices, while 32% say they use it as a reference for information on investments (4). And while trust is an important factor, Gen Z investors also tend to rely more on friends and family than they do on traditional investment advisors.
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What we can learn from young investors
There certainly are lessons we can learn from the youthful investors mentioned above, but their circumstances are very different when compared to the many investors out there who don’t exactly have time on their side.
Here are some useful strategies we can take from our intrepid young investors, as well as a few things to avoid if your appetite for risk doesn’t quite match theirs.
Buy early and with intention
If you’re young, you can use time to your advantage. But don’t just throw money at stocks because you have time on your side. Instead, do your research (as Provencher has done) or consult with a financial advisor who can help you invest with intention.
Stay connected to your holdings
Remember that information is power. Provencher tunes in to earnings calls and signs up for press releases from companies he may want to invest in. Staying informed gives you clarity on your investments and potential opportunities, which can help you with making big decisions.
If you own stock in a company, follow its earnings and stay updated on any news that may affect its stock value. And if you hold an investment fund, you’d be wise to know what’s inside it as well as what risks it may carry.
Adjust your risk profile
The young investors mentioned above can tolerate a higher level of risk, but based on your age and personal situation, you may want to adjust your risk tolerance as your needs change.
For example, if you’re close to retirement — when you’ll likely begin to rely on your savings and investments for income — you might lean toward more stable, low-risk investments like a Certificate of Deposit.
Automate and build good habits
Esposito’s $1,000/month investment system is a great model for saving and investing because it eliminates emotional timing mistakes, while also ensuring that she doesn’t forget to invest her savings.
Esposito also regularly checks on her investments, showing that young investors aren’t just contributing money to investment accounts and forgetting all about it. Instead, today’s youthful investors stay plugged in to maximize their returns.
Be aware of market volatility
If you’re a young investor, take a page out of Paladino’s playbook and try not to sweat a market downturn. “If you’re 25 and the market falls 20%, by 30 it could be back at all-time highs,” said Paladino.
However, if you’ve been investing for years and you’re prioritizing stability, consider defensive investments like bonds, commodities and defensive stocks.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Charles Schwab (1); The Wall Street Journal (2); CFA Institute (3); YouGov (4)
This article originally appeared on Moneywise.com under the title: Young adults, led by Gen Z, are investing earlier than ever. Here’s how they’re playing this year’s volatile market
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.