The Scared-to-Invest Generation

The recession has left workers in their 20s and 30s wary of the stock market.  According to the Employee Benefit Research Institute, the percentage of workers between 25 and 35 who say they have saved for their retirement has fallen by over 20 percent in the last decade.  A Newsweek article about the research noted that young investors continue to put their money into seemingly safe investments like low-yield bonds whereas investment experts say they should really be investing in stocks through passive (index) mutual funds.  Playing it safe, the article noted, “could delay retirement for a decade.”

Whenever I speak on college campuses I’m impressed by how hungry today’s students are to learn about money, especially investing.  And I’m reminded that they have a lot to learn.  At a recent college workshop, attended by student leaders such as resident assistants, I asked how many knew what an index fund is.  Not a single hand went up.

Two good investment books I recommend, and not just for college students, are The Little Book of Common Sense Investing and The Smartest Investment Book You’ll Ever Read.

What are some of your favorite investing books, especially those that young people would find helpful?

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2 Responses to The Scared-to-Invest Generation

  1. Amy W November 19, 2010 at 10:30 PM #

    One of my aunts told me about the book “Sound Mind Investing” by Austin Pryor when I was in college. Just wish I wouldn’t have waited to read it until I was 30.—Step/dp/0615226248/

  2. Wilson November 15, 2010 at 8:22 PM #

    When we bring back the Glass-Steagal act and get our large banks and investment firms out of “Casino” style investing, consumers will have more confidence. There is to much risk with the current system.

    Moving our money into local community run banks and credit unions is a step in the right direction. Each state should establish a state run bank similiar to the one in North Dakota.

    Thank you for your financial ministry.


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