Top 5 investment tips for 2025 as Gen Z investors have nearly doubled yearly

A study of 2,000 adults revealed 52 per cent of 18-24-year-olds chose to invest some cash in 2024 – up from just 29 per cent the previous year.

And while 54 per cent are simply focused on building wealth for their future, 41 per cent see investing as a way to try and secure a comfortable retirement.

Other young adults invested rather than keeping all their cash in savings accounts in a bid to achieve their longer-term financial goals as quickly as possible (37 per cent), and 19 per cent did so because they see it as a hobby.

Millennials are also taking up investing in increasing numbers, with 45 per cent putting money away in something other than a cash savings account last year, an increase of 13 per cent year-on-year.

This compares to just 22 per cent of Generation X choosing to invest in the same period.

Looking to the future, the research, commissioned by Moneybox as part of its Investing Money Mindsets study, found 21 per cent of Gen Z are planning to start investing this year and 20 per cent want to invest more.

Among those aged 25-34, 26 per cent want to start investing in 2025 and 38 per cent aim to put more of their money into investments.

It also emerged that confidence in investing has nearly doubled across all age groups, with 65 per cent of Brits feeling positive now, compared to just 40 per cent of adults in 2023.

While 87 per cent of those aged 25-34 report feel more confident about investing, followed by 75 per cent Gen Z.

“Cash continues to be a cornerstone to financial planning”

Brian Byrnes, head of personal finance at the savings and investment app, said: "Investing was once seen as risky, complex, and reserved for the wealthy, but young people today are feeling more confident embracing investing to help take charge of their financial future.

“Gen Z is the first generation to grow up with the benefit of the fintech revolution, where money management and investing is more accessible, affordable, and user-friendly than ever.

"It's inspiring to see so many leveraging these tools to build financial stability and wealth early on."

The research went on to find cash continues to be a cornerstone to financial planning, as younger generations are incorporating stocks and shares into their financial planning, more than the national average.

A quarter of Gen Z now hold a Stocks & Shares ISA, compared to 23 per cent of all adults, with 13 per cent opening one for the first time last year.

More than one in three (34 per cent) Millennials also hold this account, with 21 per cent having opened one as a financial first last year.

There is also a significant appetite among younger generations to embrace non-traditional investments and build out more diversified portfolios.

One in four (25 per cent) 18 - 34 year-olds have already invested in collectibles, such as art or memorabilia, 22 per cent in luxury items, 20 per cent in cryptocurrency and 15 per cent in equity crowdfunding.

The most popular alternative investment among Millennials is cryptocurrency with 33 per cent currently holding some crypto compared to a national average of nine per cent.

The research, conducted by OnePoll, shows that on average, Brits are currently putting 17 per cent of their monthly income into savings or investment, rising to 23 per cent among those under 35.

And of those who chose not to invest last year, a third said they simply can’t afford to, while 26 per cent are worried about losing their money and 19 per cent are not confident they know how to invest.

Despite this, 18 per cent of Brits are looking to invest more in 2025.

Brian Byrnes added: “When it comes to deciding on the right time to start investing, in the majority of cases the answer is likely now.

“If you already have a rainy day fund set aside, and you're looking to the long term, investing is one of the best ways to grow your money over time.

“Even relatively small amounts invested can make a big difference and help you achieve your long-term financial goals thanks to the benefit of compound returns.”

5 Top Tips from Moneybox for Anyone Who Wants to Start Investing or Invest More in 2025:

1. Set Clear Investment Goals & 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 contributions. If you're looking to build long-term wealth, Stocks & Shares ISAs let your investments grow tax-free. Taking advantage of tax wrappers can significantly accelerate your financial growth.

5. Talk About Money & Advocate for Your Worth

Get comfortable discussing money with friends, colleagues, or financial professionals. Many people hesitate to negotiate salaries, yet earning more means having greater investing power for the future. Research industry pay rates, prepare your case, and ask for a raise or adjust your rates if self-employed. Increasing your income today helps you invest more for tomorrow.