The Blubber

63% of young adults believe the stock market is a great place to build wealth and invest, but many are not participating, per CNBC.


Despite earning more, many Gen Z adults and millennials are struggling to find room in their budgets to invest.

According to the latest Youth & Money in the USA poll by CNBC and Generation Lab, 63% of young adults believe the stock market is a great place to build wealth and invest, but many are not participating. In fact, 61% are not saving for retirement each month.

The survey, which polled 1,013 people ages 18 to 34 in the U.S. in late January, found that even though younger adults are earning a bit more than a year ago, they’re having a hard time saving for emergencies and investing in retirement accounts as they grapple with the high cost of living. This issue is expected to be a major focus for the cohort in the upcoming presidential election season.

“They’re cutting costs, they’re tipping less, they’re trying to spend less eating out … living with parents … they’re not acting like the economy is as good as it is,” said Beschloss.

Most younger adults are making a bit more money than 12 months ago (32%), a lot more (10%), or about the same income (31%), according to the survey.

However, as Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York, pointed out, the generation doesn’t really have much cash saved up. “That’s very indicative of why more people aren’t saving for retirement, why people want to invest but just generally can’t right now,” he said.

Only 3% say they make enough to be “extremely comfortable,” and 18% say they have enough to “live pretty comfortably,” while 38% describe themselves as living paycheck to paycheck.

Regarding their living arrangements, 40% said they live with family, while 27% have roommates. Only 13% are living on their own.

“They’re making more money, but they’re not really acting or spending like it,” Beschloss said.

Susan M. Wachter, a professor of real estate and finance at The Wharton School of the University of Pennsylvania, noted that the number of young adults still living with their parents is at historic levels due to unaffordable housing costs.