The big capital myth – does investing savings require a fortune?
– Lack of significant capital as a barrier to investing is a myth we want to debunk. 49% of non‑investing Gen Z and 64% of baby boomers believe that without large money you cannot invest. Yet once they enter the market, the thinking changes – says Marcin Groniewski, CEO of Erste TFI, in an interview with Newseria.
After starting to invest, only 36% of Gen Z and 39% of baby boomers maintain that view.
– The problem is that people have savings but do not treat them as investment capital. The barrier is mental, not financial – the expert emphasizes.
The study shows that the biggest barriers to entering the investment market are emotional. Two thirds of non‑investors fear losing money. A similar share points to the risk of fraud. The authors note that fears often arise even before any investment decision is taken.
From Gen Z to Boomers – how different generations enter the investment market?
Nearly one in four people who have not invested so far intends to change that soon. The highest readiness is declared by Gen Z representatives. For them the main barrier is lack of knowledge about the first steps. For younger market participants, social media is the source of knowledge and the impulse to start investing, as indicated by 23% of new investors. Contrary to popular stereotypes, young people are also not especially risk‑seeking. Half of Gen Z investors choose solutions considered safe, and 28% – those considered riskier. Among young investors, bonds are more popular, with 24% of respondents choosing them, compared to 14% who choose cryptocurrencies.
Millennials are the most aware and active group of investors, treating it as a financial hygiene standard, thinking about securing children, stabilizing, and saving for retirement. Meanwhile, Gen X representatives more often have the means to invest, but postpone the decision to enter the market due to difficult and hermetic financial language. For baby boomers, investing still carries too much risk. They focus on securing a rainy‑day fund and the most traditional savings instruments.
The real split: Investors versus savers "for a rainy day"
– One of the most interesting findings from our study is that the key line of division in the Polish market does not run between generations, but between those who invest and those who do not. This is also confirmed by observations from our daily work – says the CEO of Erste TFI. – For investors, investing is associated with satisfaction, curiosity, and hope. For non‑investors – with stress, uncertainty, and fear.
Both groups, regardless of age, also differ in perspective and attitude towards finances. For example, 83% of new investors and 39% of non‑investors declare regular saving. The average declared monthly savings amount is 2108 PLN and 745 PLN respectively. One in three non‑investors admits that they have not saved any additional money in the last year.
– When we asked what each person would do with an additional 5,000 PLN, investors much more often pointed to active capital management – says Marcin Groniewski.
Differences also appear in the level of accumulated savings. Among new investors, 62% declare savings exceeding 10,000 PLN, while in the non‑investing group such a level is held by 21% of respondents. As the report (available at www.erste.pl/tfi) shows, investors more often set aside money for specific goals such as retirement security, property purchase, or children’s education. Among non‑investors, savings are dominated by those accumulated "for a rainy day".
– Poles need simpler processes and the conviction that it is worth investing even 10 PLN. As an industry we have a duty to simplify the language, shorten the path to the first investment, and build trust – emphasizes Marcin Groniewski.
Source: Newseria
