When I met Shelly, a Gen Z finance student, a couple of years ago, she was pursuing a career in financial planning, but was conflicted about it. “I am aware of the importance of financial confidence, and am passionate about investing and numbers, but I think it is too hard to get into the investment industry because, from what I have seen, it’s a male-dominated industry," she said. "I do not know how or where I’d fit in.”
Regrettably, this sentiment is frequently echoed by other young women, many of whom are top graduates at some of the most reputable colleges and universities.
Shelly found out about Girl Power USA through a friend’s reference. She got in contact with our team of young leaders and I had the opportunity to talk with her. She was passionate about social impact and contributing to creating a more equal society, but she didn’t know how — or if — she could merge that purpose with her career.
I explained that at Girl Power USA, one of our priorities is to provide financial literacy to youth in underserved communities. Shelly, with a wide smile on her face, immediately asked to be a volunteer at Girl Power USA … and now she is.
How is the investment industry perceived by millennials and Gen Zers like Shelly? Do they see themselves leveraging the potential of investing?
The stereotype is that millennials and Gen Zers are all about digital tools and the app life. But contrary to this perception, these generations are very interested in personal guidance and human relationships.
For instance, when it comes to saving, 71% of millennials save for retirement, and 39% of them are considered “super savers” — saving around 10% of their salaries. Millennials and Gen Zers were born and grew up in the age of advanced technology but that doesn’t mean they neglect human interaction more than their predecessors. In fact, peer-to-peer fundraising is one of their favorite capital vehicles, because it merges collaboration with social media.
They also have more economic power than any prior generation. They earn, save, and invest more and earlier than their predecessors. One of four millennials who saves has more than $100.000 in savings. And 95% say they want to use their money in socially responsible investments. Like Shelly, now enrolled in a CFA program, millennials and Gen Zers are interested in finances and they want to have successful and profitable careers. But they also want their efforts and contributions to be financially rewarding and to create a positive impact in the world.
As a leader, I learned the importance of having meaningful conversations with young people around me to understand their needs and values. This is the first step to breaking down the barriers in the investment industry for youth, and opens the way to make the most of their talent and potential.
Sameer Somal is co-founder of India-based Girl Power Talk, a global leadership development company for girls and nonbinary young people, and of its American branch, the nonprofit Girl Power USA.
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