Economic commentator Kayla Scanlon has noticed some potentially worrying trends in the investment outlook of younger generations.
“It’s a polarized world,” she said this week on CNBC’s “ETF Edge.”
Scanlon, 26, who rose to prominence through her social media videos about the markets and the economy, explained why some members of Gen Z are saving aggressively for milestones like retirement, while others are taking a much more relaxed approach.
“Some people are maxing out their 401(k) plans. They’re doing everything they can to prepare for retirement,” she says. “But then there are people who don’t want to save for retirement, which is an element of financial nihilism. They don’t want to save money in general because they believe the future doesn’t exist.”
In her new book, “How Money and Markets Really Work in This Economy,” Scanlon aims to bridge the financial divide among Gen Z.
“Financial education will always be an uphill battle because money is a very personal issue, but it’s important to give people the tools they need to get started somewhere,” she said.
She points to the housing market as a major example of young people being left behind: A recent report from the National Association of Realtors estimated that Gen Z will account for just 3% of all homebuyers in 2023, a statistic that Scanlon attributes to rising interest rates.
“The younger generation is definitely [homeownership]”Because there are a lot of financial benefits to having equity,” she says. “People are just now figuring out how to make that financially possible with mortgage rates and home prices going forward. It’s difficult.”
Disclaimer
