The economic climate in which millennials grew up has led them to approach investing differently than previous generations. While they are highly motivated to save, the majority of young adults tend to keep their money in a bank or credit union account, reluctant to invest the same way as their parents. The personal loan team at North Jersey Federal Credit Union, located in Totowa, NJ, discusses how this generation is investing their money.

Millennials are more fearful of investing in the stock market than older generations. According to one survey, only one-third of millennials choose to invest in the market by purchasing stocks or mutual funds and 85% describe themselves as conservative in regards to their tolerance of risk. Having experienced two major market crashes in their lifetimes, they have seen firsthand the impact that downturns have on their friends and families. They are also dealing with financial pressures including high college debt and rent, as well as mortgage payments to banks. As a result, millennials have a lower risk tolerance than previous generations and tend to avoid investing in the stock market.

The financial fear many millennials experience leads them to keep their money in more stable investments. Another survey found that 38% of millennials prefer cash investments including savings accounts at banks. Those who do put their money in the market tend to be value-conscious and seek out low-fee vehicles with transparent fee structures. When choosing options, this generation has a tendency to select sectors and companies they are familiar with, most notably technology and internet commerce options. Apple, Amazon, Facebook, and Netflix are some of the most popular stocks they invest in.

The personal loan and bank experts at North Jersey Federal Credit Union are proud to offer savings and retirement accounts to their customers of all ages to help them save for their future. Call (973) 785-9200 for more information about their low mortgage loans. Visit them online to learn more about their credit union.