Millennials don’t invest? You just don’t know how to engage them.

290368_10150337186527290_309950877289_8022970_605720290_oAt 80 million strong, the Millennial generation has defined itself as a generation of change-makers: they are known for their collective passion for social causes, their entrepreneurial spirit, their grassroots organizing abilities and their eagerness to reinvent and create new models for change. Millennials is a group who are oriented toward the future, who don’t want their lives to revolve around money. No matter their background, young adults share a sense of entrepreneurship. That innovative spirit can limit the amount of risk millennials are willing to take with their investments.

Born in 1980 – 2005, Millennials grew up in the age of Internet and social media, which enables new ways to invest: shared economy via P2P lending platforms and crowdfunding. Only 26% of Millennials invest in stocks – comparing to 58% of Baby Boomers.

The new generation is educated about the 2008 financial crisis – the worst economic downturn in recent memory. In addition to that, they are holding more than $1.3 Trillion in student debts – while having estimated $2 Trillion in liquid assets in years to come. This forms a new mindset of thrifty generation – population that shares its resources and has no problem calling mom and dad “roomies” to save money. At the same time, young adults rank paying off debt and saving for retirement as the highest financial priorities.

So why don’t Millennials invest? Reasons are simple: lack of extra money, lack of understanding of basic investment as well as lack of trust to existing mechanisms, including stock market. Therefore, the biggest challenge for this generation is establishing investment habits for building wealth and retiring.

Millennial investor profile can be described by a number of key positions: long investment time frame, lower risk tolerance, focus on personal values, and low-cost themed investment portfolios. Millennials want to remain in the driver’s seat when it comes to their investments, to be “self-directed” in their investing decisions. So what is the solution? The best way to involve Millennials in investing is to let them “buy what they know”: food they eat, products they use, etc. while making it clear and easy to evaluate the returns. And definitely use technology.


StartWise – a crowdfunding platform that enables individuals to invest in companies they care about in return for a share of the company’s revenue. We target non-accredited investors and businesses who don’t want to deal with equity investments.