A new report shows Gen Z are investing through crypto, collectibles and ISAs – a finance expert shares his top tips on investing more for 2025.
The number of Gen Z investors has nearly doubled year-on-year, with more young adults turning to investing to grow their money and plan for the future.
A study of 2,000 adults revealed that the number of 18-24 year olds who invested in 2024, was up 23% from the previous year.
The report by Moneybox showed 41% are focused on securing a comfortable retirement, and 37% are investing to meet long-term financial goals more quickly. Millennials are also increasingly investing, with 45% using alternatives to cash savings in 2024, a 13% rise year-on-year.
Confidence in investing has climbed across age groups, with 75% of Gen Z and 87% of Millennials feeling more optimistic about it. Additionally, apps and online banking have made investing more accessible and user-friendly for younger generations.
Whether it’s through Stocks & Shares ISAs, cryptocurrency, collectibles, or equity crowdfunding, the research shows Brits are now putting an average of 17% of their income into savings or investments, rising to 23% for those under 35.
However, a third of non-investors cite affordability as a barrier, while others worry about risk or lack confidence. Brian Byrnes, head of personal finance at Moneybox, encourages those with a rainy day fund to start investing now, highlighting the long-term benefits of compound returns, even with small contributions.
He offers his top tips for those who want to invest more in 2025:
1. Set clear investment goals and automate contributions:
Define your short, mid, and long-term financial goals, such as buying a home, retiring early, or building wealth. Set a target amount and timeline for each goal. Use budgeting tools or apps to track your progress and automate your investing contributions.
Automating even small monthly investments helps you stay consistent and take advantage of compound growth over time.
2. Build financial confidence through small, actionable learning:
Dedicate at least 30 minutes per week to financial education. Choose a topic like investing basics, stock market trends, or tax-efficient investing. Use resources such as podcasts, YouTube channels, or online forums to grow your knowledge in an easy, digestible way. The more you learn, the more confident you’ll feel making investment decisions.
3. Start small with low-cost, diversified investments:
If you’re beginning your investing journey, consider low-risk options like index funds, ETFs, or tracker funds that mirror market performance.
These provide built-in diversification, reducing risk while offering long-term growth. Consider pound-cost averaging-investing a fixed amount regularly-to smooth out market fluctuations and remove emotional decision-making.
4. Maximise tax-efficient investment accounts:
Make use of ISAs and LISAs to shield your savings and investments from taxes. If home ownership or retirement is a goal, a Lifetime ISA offers a 25% government bonus on contributors.
If you are looking to build long-term wealth, Stocks & Shares ISAs let your investment grow tax-free. Taking advantage of tax wrappers can significantly accelerate your financial growth.
5. Talk about money and advocate your worth:
Whether it’s with mates, work colleagues, or finance professionals, don’t shy away from discussing money. Many of us hesitate when it comes to negotiating salaries, but remember, earning more means having more to invest for the future.
Do your homework on industry pay rates, prepare your argument, and don’t be afraid to ask for a raise or adjust your rates if you’re self-employed. Boosting your income today means you can invest more for tomorrow.