Building a Strong Financial Future: The Importance of Investing for Young Millennials and Gen Zs  

It’s remarkable what young millennials and Gen Zs across the world are doing in recent times. From their pioneering work in the tech industry to their impressive digital prowess, this category of people is contributing significantly to impacting the world. Born between 1981 and 1997, young millennials and Gen Zs are currently in their late 20s to early 30s and aged between 26 and 21, respectively. In spite of the laudable work they do, these young minds still face unique financial challenges in today’s fast-paced world, where financial security is more critical than ever. Rising living costs, uncertain job markets, and the potential instability of traditional retirement plans demand a proactive approach to securing their financial future. As they embark on their journey toward financial independence, it is important for young millennials and Gen Zs to consider investing.  

Investing is not just an option but a powerful pathway to financial growth and security. By committing to investing early in life, young millennials and Gen Zs can reap numerous benefits that will shape their financial future. In this article, we will share some responses we got from a mini-Q&A we had with some millennials and Gen Zs and highlight the importance of investing for young millennials and Gen Zs. 

Investor Stories 

Name: Paul Ikhide  

Age: 31  

Location: Mainland, Lagos  

Occupation: Product Manager 

Net worth: Confidential 

Investment Story: I embarked on my investment journey in 2020, and it was a turning point in my life. Seizing the opportunity as a Product Manager in the tech industry, I made my initial investments in cryptocurrencies and Risevest. Now, I am preparing to delve into the realm of real estate alongside a close friend. 

Lesson: One invaluable lesson I’ve learned is the importance of financial prudence. Instead of exhausting all your funds, focusing on generating passive income can bring about a gratifying sense of financial security. Remember, it’s never too late to start, as long as you approach your investments with discipline and commitment. 

Name: Okodugha Austin  

Age: 33  

Location: Lagos, Nigeria  

Occupation: Freelance writer / Civil servant  

Net worth: prefer not to say 

Investment story: I started investing shortly after university in crypto and agriculture. As I gained more understanding, I expanded my investment portfolio to include foreign exchange (FX) and stocks of companies that I had thoroughly researched and understood how they operated.  

Lesson: I believe in investing at the ground floor, which aligns with the quote by Nathan Rothschild: “The time to buy is when there’s blood in the streets.” However, I’ll advise others to do their own research before making any investment decisions. It’s not wise to invest solely based on hearsay like, “My friend said I can get 10X my money in 6 months.” 

Name: Aaron 

Age: 21  

Location: Benin City, Edo State 

Occupation: Student/Freelancer 

Investment story: I started investing in the year 2018, the biggest lesson I’ve learned is that; you don’t really get your profits immediately, but they grow over time with your consistency 

Lesson: My Advice to others would be; don’t be intense with investments, the intensity doesn’t last but consistency does. Be smart and be consistent.  

From the responses we received from this casual investment Q&A, what is apparent is that young Nigerians are very much interested in the subject ‘investment.’ This interest is piqued by the benefits that investing affords them.  

What then is the benefit of investing for young millennials and Gen Zs? 

First is that investment guarantees financial security. Although it might seem like retirement is distant for young millennials and Gen Zs, it’s never too early to plan for it. With the uncertainty surrounding the future of social security and the rising cost of living, relying solely on traditional retirement plans may not be enough. Investing early allows young millennials and Gen Zs to build a retirement nest egg that provides financial security and independence. By consistently investing a portion of their income into retirement accounts, stocks, bonds, and others, these young investors can ensure a comfortable retirement for themselves. 

Another point to consider is that investing helps to hedge against inflation. Inflation erodes the value of money over time, making it essential for young investors to protect their wealth. For example, Habiba, a university graduate, starts her career at age 22. She diligently saves ₦50,000 in a bank account, earning minimal interest. Fast forward ten years, and the purchasing power of her savings has diminished due to inflation. Ugo, on the other hand, a fellow Gen Z, decides to invest the same amount in a diversified portfolio. With the potential returns generated by his investments, Ugo’s money keeps pace with or even outpaces inflation, preserving and growing his wealth over time. 

Closely related to the above is the power of compounding interest that comes from investing.  Let’s consider the story of two friends, Olaniyi and Nadir, both 25 years old, who have different approaches to saving. Olaniyi starts investing ₦100,000 per month in a diversified portfolio that generates an average annual return of 7%. Meanwhile, Nadir decides to keep his savings in a low-interest savings account. Fast forward 40 years, when both Olaniyi and Nadir reach the age of 65. Despite investing for the same period, Olaniyi’s investment grows substantially, thanks to the power of compounding. By starting early, young millennials and Gen Zs can harness the compounding effect, allowing their investments to grow exponentially over time. 

Furthermore, investing affords young millennials and Gen Zs the funds for entrepreneurial pursuits. Millennials and Gen Zs are known for their entrepreneurial spirit and innovative ideas. However, turning these ideas into reality requires capital.  Investing early provides an avenue for young individuals to fund their entrepreneurial ventures. By accumulating wealth through investments, they can become angel investors or venture capitalists, supporting the growth of innovative businesses. This not only fuels their own entrepreneurial aspirations but also contributes to the overall economic development and job creation. Think about the likes of Paystack’s Ezra Olubi, Flutterwave’s Olugbenga Agboola, and Flying Doctors’ Dr. Ola Brown, amongst others, without funds, they could likely not have actualized their goals. 

A final point to note is that investing helps young millennials and Gen Zs achieve financial goals. Whether it’s purchasing a home, starting a family, or pursuing higher education, young millennials and Gen Zs have a multitude of financial goals. Investing provides a means to achieve these milestones. By allocating funds towards investments aligned with their goals and risk tolerance, these young investors can accumulate the necessary resources to turn their aspirations into reality. Whether saving for a down payment on a house or funding their own education, the growth potential offered by investing can significantly accelerate their journey toward achieving these financial milestones. This paves the way for greater financial independence and the ability to make sound financial choices throughout their lives. 


For young millennials and Gen Zs, investing is not just a means of growing wealth; it is a crucial step towards building a strong financial future. By starting early and harnessing the power of compounding, they can secure their retirement, protect against inflation, support entrepreneurial endeavors, and achieve their financial goals. Embracing investing early enough empowers these individuals to take control of their financial future, laying the groundwork for a prosperous and financially secure life. Remember, the journey of investing begins with education, a clear plan, and the willingness to embrace the opportunities that lie ahead. And we can help you begin your journey on the right path. Secure your financial future in just a click.  

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