Generational Investment Behavior: The Influence of Risk Tolerance and Technology Adoption in an Evolving Financial Landscape

Rob Kim Marjerison, Hang Dong and Jong Min Kim

SAGE Open, 2025, vol. 15, issue 3, 21582440251352342

Abstract: This study explores generational differences in investment behavior, focusing on the moderating roles of risk tolerance and technology adoption in shaping financial decisions across asset types. Generation Z, having entered adulthood during the COVID-19 pandemic, exhibits a more risk-averse approach compared to Generation Y and Generation X, favoring safer, liquid assets amidst economic uncertainty. The study confirms that as Gen Z’s risk tolerance increases, their preference shifts towards moderate-risk investments like gold, though high-risk assets remain largely unattractive. In contrast, technology adoption plays a more significant role for Millennials (Gen Y), enhancing their engagement with both safe and moderate-risk investments, while having minimal impact on Gen Z’s behavior. These findings provide valuable insights for financial policymakers and institutions, emphasizing the need for targeted strategies that align with the unique preferences of each generation. Tailoring financial policies and investment products to generational needs can foster sustainable economic development by encouraging engagement across diverse market segments.

Keywords: investment preferences; generational differences; risk tolerance; technology adoption; economic uncertainty (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440251352342 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251352342

DOI: 10.1177/21582440251352342

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().