Cryptocurrency vs. Traditional Investments: A Generational Shift in Wealth Storage

Today, we’re diving into some fascinating insights from the 2024 Policygenius Financial Planning Survey. The data reveals a striking difference in how younger generations, specifically millennials and Gen Z, are storing their wealth compared to their older counterparts. So, let’s get into it!

The Rise of Cryptocurrency: A Generational Divide

• Gen Z and millennials are almost equally likely to own cryptocurrency (21%) as they are to own real estate (20%)
• This marks a significant shift from traditional wealth storage methods
• In contrast, only 36% of Gen X and baby boomers have tried any of the financial “hacks”
  • Maximizing credit card rewards is the most popular hack for these generations (21% and 19% respectively)

Gen Z: Crypto Enthusiasts and Financial Experimenters

• Intriguing finding: Gen Zers are more likely to own cryptocurrency (20%) than they are to own stocks (18%)!
• 14% of Gen Z have tried “infinite banking” (borrowing against the cash value of a whole life insurance policy)
• This trend suggests that younger generations are more open to:
  • Taking risks with their money
  • Exploring alternative financial strategies

Social Media: The New Financial Advisor?

• Gen Z and millennials are more than twice as likely to turn to social media first with a financial question (8%) compared to Gen X and baby boomers (2%)
• This reliance on social media for financial guidance could be both a blessing and a curse:
  • It exposes younger generations to innovative ideas
  • But also potential misinformation

As always, thanks for joining me in exploring the intersection of technology, finance, and generational trends. Stay curious, stay innovative, and until next time, happy blockchaining!