Teens are using ChatGPT and beating the old investing playbook

The cost of groceries may keep climbing and mortgage rates are anything but kind, yet a new national survey suggests Americans are anything but defeated. Charles Schwab’s 2024 Modern Wealth Study finds that nearly two-thirds of adults still believe they are just as likely or more likely to hit their long-term money targets than any generation before them.

Modern Wealth 2024: How generations are rewriting the rules of financial confidence

A headline takeaway is the cross-generational consistency of optimism. 64% of respondents rate themselves as likely or more likely to reach their goals compared with older cohorts. Boomers top the confidence chart at 66%, followed closely by Gen X at 63%, Millennials at 62%, and Gen Z at 60%. The data overturns the popular narrative that younger Americans are overwhelmingly pessimistic about wealth creation. Instead, confidence appears evenly spread across age groups despite very different macroeconomic backdrops.

What underpins that poise? Survey participants point first to the wider universe of investment channels, then to the sheer ease of getting started. In other words, technology has replaced inertia with instant access and transparent pricing. Those functional advantages help level the field between a novice trading fractional shares on a phone and a seasoned investor rebalancing an IRA through a desktop platform.

What fuels today’s financial optimism

Asked to explain their self-belief, half the sample cites more ways to build wealth, while 46% highlight easier access to investing. Both signals speak to the democratization effect of zero-commission brokerages, fractional share functionality, and round-the-clock digital advice. Layered on top, 45% mention the proliferation of new asset classes, suggesting variety itself is a psychological booster.

• Gen Z’s nuance: For the youngest adult cohort, confidence is uniquely tied to early exposure. 43% say they learned about investing at a young age, a rate that halves among Boomers. This percolates into faster action: the average Gen Z investor began saving at 18 and buying securities by 19, roughly 15 years sooner than the typical Boomer investor.

52% of all respondents judge their current lifestyle as superior to their parents at a comparable age. That sense of advancement dovetails with another stat: 51% believe they invest better than their parents. When viewed together, the numbers imply that accelerated financial education and product diversity translate into a higher quality of life sooner.

Age-of-entry matters. Starting to invest in one’s teens rather than mid-thirties extends the compounding runway by an entire economic cycle. The Schwab data shows that Gen Z has capitalized on this structural advantage, while Millennials, shaped by the Great Recession, are catching up quickly. The compound result is a stronger savings habit before the age of 30 and, theoretically, a more robust net-worth trajectory.

The portfolio strategy matrix

Despite the FinTok hype cycle, traditional buy-and-hold remains the backbone of American portfolios, used by 56% of investors. Growth investing follows at 53%. Yet digital innovation is reshaping behavior: 37% now purchase fractional shares to build diversified positions with small dollar amounts, 32% pursue direct indexing, and 28% lean on robo-advisors for automated rebalancing.

This hybrid profile signals a maturing retail mindset. Long-term compounding forms the core, while tactical or technology-assisted plays sit at the edge. The implication for wealth managers is that product menus must flex across the spectrum, offering both the comfort of passive equity exposure and the novelty of algorithmic or thematic capabilities.

Who do investors trust?

Professional advice still wears the crown. 76% of respondents assign an A or B grade to certified financial planners, edging out investment firms at 68% and accountants at 68%. Social media trails significantly. Reddit, TikTok, and Twitter earn passing grades from fewer than 20% of adults. Interestingly, Gen Z shows higher trust in family and friends compared to older groups, treating their peer networks as informal financial advisors.

The scorecard highlights an advisory paradox. While access to information has never been broader, credibility remains tied to professional credentials and real-world accountability. Digital platforms spread awareness, but actionable financial moves still require trusted validation from advisors or institutions.

Confidence does not automatically translate into action. Only 36% of Americans maintain a written financial plan, leaving nearly two-thirds to navigate major milestones without a formal roadmap. Among those who do have a plan, 76% feel in control of their finances, compared with just 18% of those who do not. The difference highlights the role of planning as a behavioral bridge between optimism and tangible progress.

41% of Gen Z workers are sabotaging their employer’s AI plans

Why the shortfall? 43% claim they do not have enough money to need a plan, reflecting a misconception that planning is a luxury for the wealthy. Gen Z reports a different issue. 34% describe planning as too complicated, signaling an opportunity for digital tools and financial educators to simplify the process and lower perceived barriers.

Action roadmap for industry stakeholders

• Scale early financial literacy: Classroom-ready modules and gamified tutorials can replicate the confidence-building effect observed among Gen Z.
• Deploy hybrid advisory models: Digital entry points combined with human advisors offer convenience without sacrificing trust and personalized guidance.
• Segment content by life stage: Boomers value liquidity management, Gen X seeks tax-efficient diversification, Millennials demand access to alternatives, and Gen Z favors actionable how-to financial education.

Schwab’s survey paints a portrait of remarkable self-belief, even amid economic turbulence. Access to markets, a variety of investment options, and early education have empowered each generation to envision and often realize a higher financial standard of living. Yet this confidence also masks critical vulnerabilities, namely the lack of formal planning that leaves outcomes more to chance than strategy.

For financial institutions, fintech innovators, and educators, the mandate is clear. Convert enthusiasm into discipline. Simplify the planning process, broaden access to trusted advice, and encourage every saver and investor to treat their money with intention. If successful, future surveys will not just measure optimism about financial futures. They will document the reality of a generation that planned, acted, and delivered on its wealth ambitions.

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