Investments in the stock market: young people have never invested so much in the financial markets

In a first survey, as many as 35% of young people under 35 have already invested in cryptocurrencies. But this time around, this new survey is about long-term financial investments.

After the crisis, young people invested

According to a study conducted by OpinionWay for fintech Mon Petit Placement, young French people have never been more interested in financial investments than since the beginning of the health and economic crisis. However, there is still a long way to go for everyone to realize the importance of managing their wealth from an early age.

The health crisis, a trigger for young workers

These nearly two years hit by the Covid-19 crisis have had consequences on many sectors. This particular period also radically changed the habits of the French, at all levels, and in particular as regards the management of their finances. At the beginning of 2022, the portfolios of the French people are still greatly disrupted by the health and economic context. While inflation is breaking records, “Covid” savings continue to pile up on dormant savings accounts. The opportunity for Mon Petit Placement – fintech aimed at democratizing financial investments between individuals – to unveil the results of its study entitled “The French and Investment” and conducted by the OpinionWay institute. [1]. Its goal: to understand the impact of the crisis on their interest in the financial issue, the amounts they invest, the persistent obstacles to investment, but also to decipher their willingness to invest in 2022. Among the respondents who changed their behavior in recent years: young people under 35.

The crisis: investment vector among the under 35s

Since the onset of the health crisis, there has been a growing and stronger interest on the part of young French people (under 35) in placements and financial investments. In fact, 18% said they were more interested in this topic in the period (compared to only 10% of the population as a whole). Their investments also increased in the same time frame for 17% of them (against only 10% for the population as a whole).

While young people have always shown a growing interest in investing, especially when they enter the world of work and begin to receive their first salaries, this phenomenon has worsened with the health crisis. Greater time factor linked to the periods of imprisonment, greater media visibility … various elements have therefore pushed these opportunistic neo-investors to leave. A part of this generation, among the youngest, had never experienced a financial crisis until then. The panic caused by the pandemic on the financial markets therefore presented itself as a first downside opportunity to enter. Furthermore, the forced development of digital uses induced by travel restrictions has coincided with the emergence of many digital financial services, accelerating their adoption, especially by young people. A trend that is destined to last, as the rise of cryptocurrencies places investing and trading among the trendy subjects.

A strong desire to combine significant returns and positive impacts

Young French people show a growing interest in accessible and easy-to-use financial services (23% against 14% of the population as a whole), as well as in investments with environmental dimensions (18% against 12%) and solidarity (18% against 11%) or even high-yield investments (18% versus 10%). The Mon Petit Placement Analysis: Young French people generally invest smaller amounts than their seniors, allowing them to take more risk and therefore better returns. Furthermore, unlike previous generations for which it was possible to obtain a significant return on low-risk investments, they are more aware of the need to “buy performance” to counteract the loss of purchasing power linked to inflation and low interest rates. del livret A Even the under 35s have been made aware of environmental issues and are ready to act on their own scale in favor of the world after. Therefore, if they are looking for performance and traceability, they want to financially support the causes related to their beliefs at the same time.

Young French people ready to invest even more in 2022

If the French population as a whole expects an iso-meter investment for the next year, young people should increase the amounts of their investments for 14% of them in the next 12 months (against only 6% which should reduce). A phenomenon that should be even more pronounced among young people residing in Ile-de-France (25%) and young CSP + (24%). Analysis of the placement of Mon Petit: Sensitive to investments at the beginning of the crisis and convinced by the good performance of the financial markets over the last two years, young French people want to continue and accentuate this dynamic in the future. Furthermore, investing always involves a degree of uncertainty, both linked to the returns on the sums already invested and to the amounts that may be invested in the future. This will make it easier for you to increase the amount of your investments in the event of an unexpected cash flow (professional bonus, inheritance, etc.). Young CSP +, often having greater certainty about their future income and a rising standard of living, have naturally planned to invest larger sums in 2022.

A generation eager for information and education to take control of their capital

Beyond a potential lack of savings linked to their youth and the external context that brings many uncertainties, the lack of information and support seems to be the main obstacle to investment for young French people, cited by 27% of them. The ability to gain knowledge (mentioned by 16% of them), as well as making “greener” investments (mentioned by 20% of them) could allow this target group to invest even more by coming. Analysis of the placement of Mon Petit: accustomed to receiving information on all topics and through many channels, young French people ask for explanations on the financial environment, which has remained voluntarily opaque for a long time. A modus operandi that no longer works on this target. This pedagogy must go through the disclosure of technical terms in order to increase the clarity of financial products and through support to help them build expertise in the field. A point all the more important as not being interested in managing one’s capital for the sole reason that the key concepts of investment have not been integrated would be very harmful for their advancement in the future life.

This study illustrates a trend we observe daily among our Mon Petit Placement users: since the start of the crisis, there has been a strong appetite on the part of young people to discover the world of investing. However, this goal remains difficult to seduce and demanding. You need to be able to meet your expectations in terms of teaching and performance, as well as your beliefs or even your usage constraints. “, Explains Thomas Perret, president and founder of Mon Petit Placement.

The renewed interest in investments and the awareness on the part of the new generations of the need to take control of their capital is an excellent thing, especially in the current context. Inflation is on the rise and there are very few profitable savings products. It is therefore more essential than ever that everyone build a portfolio, from an early age. “, He adds.

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