At the moment, more young people are participating in the stock market than ever before. Corona has exacerbated the boom and digitization has also played its part: Download the app, a few clicks and the share is bought. Online banking and brokerage services are appealing to young people.
Experts speak of a real stock boom during the corona crisis and one generation in particular stands out: the young adults. Compared to 2019, two-thirds more of the under-30s invested their money in the stock exchanges in the corona year 2020. The Deutsches Aktieninstitut (DAI) also speaks of a youth boom on the stock exchange: “Almost 600,000 young adults under the age of 30 ventured onto the trading floor,” writes the institute in its 2020 annual report. The reasons for the awakening of a new “generation share ” be diverse.
More time and more money due to the pandemic
Corona plays a decisive role in the boom: less shopping, hardly any vacation, no visits to restaurants and more time to find out about the extensive stock market. Many Germans also had more money due to lower expenses – money that could be invested in stocks or funds. In addition, the stock market price was quite low in spring 2020, which many could use as an opportunity to get started.
Young people in particular are no longer investing their money in traditional banks, because overnight money accounts and home savings contracts, which often result in negative interest rates, are becoming less and less popular. Online banks and so-called fintech companies that offer digital technologies for financial transactions appeal more to the younger generation.
Trade Republic & Co.: “The stock investment has reached the pocket”
Apps on the smartphone make it much easier to get started in the stock world: a model that appeals to young people in particular. In addition, online brokers charge little or no fees, so that people with lower incomes can also invest more easily – the hurdle is not as high as it was a few years ago.
Because in contrast to most banks, which charge fees for the value account and stock transactions, the offers from online brokers are cheaper. The apps have an attractive, easy-to-understand design and the path to buying shares is just a few clicks away. These can also be used to set up a long-term savings plan by investing in ETFs or equity funds: “The stock situation has reached your pocket,” writes the DAI in its report.
Stock trading: Financial influencers impart knowledge about investing
In addition to apps, social media also plays an important role in the stock boom. Financial influencers give workshops, write blog entries or give tips using YouTube videos. An indicator of this: In March 2020, the term “shares” was googled very frequently and searches for bundled blocks of shares from several companies “funds” and “ETFs” also rose at a record-breaking rate at the time.
Many young people follow the social media accounts of financial influencers, the so-called fin influencers. They explain the financial world to their followers as simply as possible: from opening a securities account to securities, yields and current prices. The financial influencers impart knowledge about investing and, with their own experiences, arouse the curiosity of the young followers, who then start investing themselves.
Smartphone brokers and influencers also have a responsibility
As tempting as the stock market may sound, there are always risks involved. So if you hope for quick profits or put everything on one card, you risk a lot of money, writes the Deutsches Aktieninstitut. So the smartphone brokers, influencers, but also the schools would have to take on a certain responsibility: “They have to provide the young target group with the necessary financial and stock knowledge so that a short-term boom can also lead to long-lasting change.”
The current figures from 2021 show that the boom among the younger generation is not over yet: growth has slowed down, but there are another 50,000 more 14 to 29-year-olds who have started investing – the new “share generation”. ” is still on the rise.
Sources:,
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
