Where Gen Zs Are Investing Their Money

Lets say a friend has a business and its struggling, I will help them out by investing my money there, and when it gets back on its feet, they start paying me back or I buy shares in their business, she says.

So far, she has invested in three of her friends businesses and has shares in them.

Juless bailout strategy is to invest a certain amount in struggling business A, and when its back to profitability, she gets her money back, or if the business is really good, she buys shares in it and is paid some dividend after all expenses are deducted.

Kendie Malowa is another Gen Z whose interest in investing was recently piqued after her employment.

After graduating from the university, she started a sewing business with their cousin, but later on, she landed a formal job as a writer.

Im currently investing my money in a money market fund (MMF), a Sacco, and in bank savings, says Ms Malowa.

I dont touch my MMF or sacco, I spend my savings from the bank or M-Pesa and Mshwari often.

Ms Malowa explains that she started investing just recently because she needed to get her affairs in order, such as renting a house and buying household items, among others.

Alice Wanjala, a 23-year-old, who works as a materials planner, overseeing inventory acquisition and supply management for companies, says she spends her money on household items such as furniture and kitchen appliances.

Away from my pet peeve of buying clothes, I have sacco savings, money in MMF, and a fixed deposit account in the bank, she says.

I got into investing by partially teaching myself and by word-of-mouth from friends and social media.

When asked why investing is important to her, she says: I see investing as a form of delayed gratification. Theres so much to learn from investment, and it allows me to multiply what I already have.

Generally, I invest 40 percent, because 60 percent is enough to cover my bills and anything else I need in the house. I also get money from my hobby, which is braiding hair.

This generation is also more open about talking about money than millennials, Gen X, and baby boomers.

TikTok has become one of the most popular sources for financial tips and advice, particularly among Gen Zs.

With various trends such as girl math, loud budgeting, and cash stuffing, financial advice is increasingly born on TikTok and spreading fast.

#Fintok is the hashtag young people are using to get financial tips and know what others are buying, selling, spending money on or investing in.

The community has garnered more than five billion views on the platform, highlighting a need for financial literacy about making money among this generation.

Being the first digital natives, Gen Z is also more comfortable investing via apps and buying things online than other generations.

This has given rise to finfluencers on TikTok, YouTube, and Instagram ready to show them the three easy steps to make hundreds or even thousands of shillings.

GenZ is also using the platform to learn business ideas and how to make money to attain their soft life.

Finfluencers appeal to Gen Z investors because they produce engaging content that is instantly accessible and, even better, free.

They seem keen to find out expert opinion on investing more, especially after the Covid-19 pandemic, this is when I noticed the trend rise, said Ms Kiplimo.

Gen Z also tend to tell each other about their investment and about the advisers they meet more than the older generation who are more discreet about money and finances.

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