Researchers have attempted to probe American teens’ perceptions of the stock market, cryptocurrencies, and other investments in the high-octane GameStop era. The results showed that cryptocurrencies were ahead of other asset classes such as real estate, with 25% of teens saying they would invest in cryptocurrencies if they were given hypothetical funds compared to 24% in real estate.
43% remain convinced that the best bet would be to invest their funds in the stock market, but a large part, 37%, said they would refrain from investing entirely.
Are results they were drawn from a survey conducted jointly by Junior Achievement and RSM US in mid-July of this year among a small sample of just over 1,000 adolescents between the ages of 13 and 17. 39% of respondents who had closely followed the GameStop saga agreed with the idea that investing in the stock market is a great way to make a quick buck, and 20% find trading stocks too risky overall . However, 40% still believe that stocks can be advantageous as a long-term investment.
Survey leaders have indicated that they aim to restore confidence among teens that buying the stock market is truly in their best interest and to temper the negative image they may have after witnessing the fate of GameStop’s retail investors. , unlike hedge funders. during the short squeeze. In the words of Jack E. Kosakowski, President and CEO of Junior Achievement USA:
“These results show that the recent phenomenon of ‘meme shares’ could have an adverse impact on teenagers’ perceptions of what it means to invest in the stock market. Since the stock market plays an important role in helping to countless Americans to achieve a secure retirement, it is important that we help demystify it for the next generation. “
Junior Achievement and RSM have been trying to change teenagers’ impressions by promoting pro-stock market educational programs, including simulated stock market experiences and a curriculum designed to clarify the basics of investing. The challenge they face is that, according to their survey results, a large majority (51%) of teens said they believe the stock market is “‘a good thing’ for ordinary people.”
Related: Parents, time for ‘the talk’: did your child trade crypto in 2020?
As Cointelegraph previously reported, in many parts of the world, a growing reliance on speculative investments has become apparent among millennials struggling to survive in an era of stifled wages, an insecure job market, and prohibitively high property prices.
In contrast to the Junior Achievement findings, Lee Han Koo, an economics professor at Suwon University in Korea, argued earlier this year that the difficult socio-economic environment has fueled a “desperate” perception among many young people that daily trading It represents a “once in a lifetime opportunity” to get out of its insurmountable financial precariousness.