By Bankrate.com, Special for USDR
Millennials continue to lag behind their elders when it comes to investing in the stock market, according to a new Bankrate.com (NYSE: RATE) report. Just 33% of millennials say that they own stock, compared to 51% of Gen Xers (ages 36-51) and 48% of Baby Boomers (ages 52-70). What’s interesting is that older millennials are leading the charge when it comes to investing; 44% of those ages 26-35 say they invest, compared to only 18% of those ages 18-25. To view the survey results to: http://www.bankrate.com/finance/consumer-index/money-pulse-0716.aspx
“Older millennials seem to be getting the message that the stock market allows for major financial gains if you start early,” saidJill Cornfield, Bankrate.com’s retirement analyst. “Although there’s always some risk involved, building a portfolio at an early age allows for compound interest to grow and produce ample savings over time,” Cornfield added.
Overall, the general population is still shying away from investing in the stock market. More than half of the respondents (54%) say they do not invest. The top reason cited for staying out of the stock market is not having enough money (48%), followed by not knowing enough about stocks to invest (25%). Other deterrents include, stocks are too risky (11%), not trusting stock brokers or advisors (7%) and fear of high fees (1%).
Income and education are clear indicators when it comes to stock market participation. 73% of individuals with an income of$75K or more invest in the market compared to only 9% of people who earn under $30K per year. Similarly, those who have college education say they invest in the market more than people with a high school education or less, 61% vs. 29%, respectively.
Princeton Survey Research Associates International obtained telephone interviews with a nationally representative sample of 1,000 adults living in the continental United States. Interviews were conducted by landline (500) and cell phone (500, including 255 without a landline phone) in English and Spanish by Princeton Data Source from June 16-19, 2016. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 4.0 percentage points.
Bankrate.com provides consumers with the expert advice and tools needed to succeed throughout life’s financial journey. For over two decades, Bankrate.com has been a leading personal finance destination. The company offers award-winning editorial content, competitive rate information, and calculators and tools across multiple categories, including mortgages, deposits, credit cards, retirement, automobile loans, and taxes. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to more than 100 cobranded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the internet, such as Comcast, Yahoo!, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to more than 500 newspapers on a daily basis including The Wall Street Journal,USA Today, The New York Times and The Los Angeles Times.