The mainstream relevance of cryptocurrencies across different corners of the world also necessitates a need for better financial literacy education programs. Reports indicate a significant majority of US citizens possess crypto knowledge at a beginner level. Most of them expressed the desire to use digital assets as a tool for future retirement funds as per the multi-generational study.
The Investopedia Financial Literacy Month Survey
Investopedia, a global business research website conducted a survey comprising 4000 US citizens from different age groups. The sample survey consisted of 1000 persons from the age groups comprising Gen Z(18-25), millennials(26-41), Gen X(42-57), and baby boomers(58-76). The objective of the survey was to explore the extent of financial education among American citizens along with their preferences.
The survey discovered that a notable section of the American society is trying to balance multiple aspects at once- grasping personal finance basics, preparing endowments for retirement, and making crypto investments. The preference patterns vary among the older generations also.
The findings from the survey revealed several interesting information, such as:
- 57 percent of adult US citizens have investments, yet only one-third of them acknowledge having advanced knowledge on business investments.
- Approximately 50% of correspondents feel they have a good understanding of consumption patterns, taxes, and savings.
- Crypto along with equity stocks are the preferred assets classes among Gen Z, millennials, and Gen X. Around half of the respondents claimed to have a grasp of digital assets.
- Over half of the participants expects retirement. The 28% of millennials are hoping cryptos will become a financial support system after retirement. The percentage of believers is slightly lesser among Gen X(20%) and Gen Z(17%).
- Internet is the primary source of education for investments and financial education for the younger generation. Youtube and Tiktok are gaining relevance among Gen Z. The millennial generation opt for internet searches and Youtube.
Financial Education and Crypto Awareness
The observations from the survey indicate the emergence of new asset classes such as crypto and NFTs are proving to be attractive investment choices among all age groups. However, what needs to be developed is better curriculum resources comprising relevant financial education addressing newer tools, products, and services. Updated resource material designed keeping investor awareness in mind can help them in building their wealth.
Of the 57% of surveyed adults making investments, less than 25% admitted to having strong knowledge of digital assets, blockchain, and non-fungible tokens(NFTs). The level of understanding is higher among millennials(44%), followed by Gen X(37%), and Gen Z(31%). Baby boomers come last at 26%.
US Citizens Expect the Biggest Investment Returns from Crypto
The study indicates that barring baby boomers, all sections of the American population are bullish on crypto. This includes millennials, Gen Z and Gen X. At least 25 percent or 1 in 4 persons from these age demographics have investments in digital assets and expect the greatest returns from them, followed by equity stocks. The dramatic surge of Bitcoin prices over the past few years may have contributed to this belief combined with a rapid increase in global crypto awareness and adoption.
Cryptocurrencies: An Alternative Investment Option for Retirement?
The number of investors increased multiple times during the pandemic expedited by easy-to-use online crypto trading platforms like PayBito, which also happen to offer white label exchange solutions for institutional investors seeking to venture into crypto trading services. In addition, cryptocurrencies also made a mark as a viable retirement solution among millennials, who believe it is possible to generate significant sustainable returns in the long run.
Approximately 28% of millennials believe in the power of cryptocurrency as a financial support system during retirement. The percentage is similar to savings investments(28%) and stock markets(27%). Similar sentiments were also echoed by Gen X And Gen Z.
Investopedia’s Financial Literacy Survey indicates that crypto has prominently positioned itself into the mainstream, and the level of existing financial literacy and education programs need to be improved for the general public. It also reveals the fact that the general US public perceives cryptocurrencies to bring the best return yields, and many are considering them as a viable retirement option.