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Co-CEO, leading GrowthMay 11, 2023

How Gen Z can start investing and build wealth sustainably

We’ll cover everything that Gen Z investors need to know to save smarter.

How Gen Z can start investing and build wealth sustainably

A note: Please kindly note that Cenoa does not provide investment, tax, legal or accounting advice; and this material has been prepared for informational purposes only. You should consult your own advisors before engaging in any transaction. You can find detailed disclaimers on Cenoa’s website. 

Investing for Gen Z: why you should start investing young 

Getting started young is the most common piece of investment advice given to young people — and it’s a popular adage for a reason. 

The earlier a person starts investing, the longer they have for their investment to build on itself and see the benefits of compounding interest. This means that higher-volatility investments will have time to level out and grow, and slow and steady investments (like high-yield savings accounts) will also be able to exponentially grow. 

Here are a few examples of how the time horizon of an investment can make such a major impact over 10 years — and how the number skyrockets in 30 years. 

Starting investment
Yearly contribution
Interest rate
How much you’ll have in 10 years
How much you’ll have in 30 years

In the above scenarios, you can see that there’s more than one way to grow your wealth. You can start small and contribute small, start with a larger sum and let it mostly grow on its own without further major contributions — or anything in between. The amount you have to start with is only one of the major factors that influence growth: your yearly contributions can make just as much of a difference.  

Gen Z investing tips 

Even in today’s challenging economic climate, Gen Zers can still learn to manage their money and invest — even just a little at a time. 

First, build a budget to determine how much you have left over each month. After factoring in all your must-have and nice-to-have expenses, you’ve got your savings and investment budget. Use an investment return calculator, like the projections in the Cenoa app, to find out what even your smallest contributions could do in 10, 20, and 30 years — and beyond. 

Start small 

Starting small is infinitely better than not starting at all. Even very small amounts grow over time with a good interest rate, and the more you can contribute over time, the better it gets. Even if you only have $25 to start with, it will grow more than $0 will! 


Another key rule of investment planning is diversification. Don’t just choose one investment strategy, because no matter how low-risk it seems, every investment carries risk. Spreading out your investment and savings budget across a few strategies is always safer.

Take advantage of compounding interest

Especially since Gen Z investors are dealing with a long time horizon, compounding interest is incredibly powerful — it means the interest that comes back from your investment grows exponentially. 

For example, if you start with a $1,000 investment in January 2023, and you have a 4.5% interest rate, you’ll earn $45 in interest. Without contributing anything more, your new base investment is $1,045, and your interest will be calculated based on that new number. Your interest is always calculated off of that new total, growing exponentially.  

4 great ways for Gen Z to save and invest

1. Store your savings in high-yield savings accounts

High-yield savings accounts are a generally very safe and stable way to grow wealth. Compared to typical savings accounts, which (on average) only provide 0.37% APY, high-yield savings accounts provide over 10x more interest — generally around 3-5%. 

2. Contribute to mutual funds that are great for the long game

For young investors, there’s time for investments to go up and down along with major economic swings. Gen Z investors can consider stocks, but individual stocks can be very volatile and high-risk. Mutual funds, on the other hand, are large groups of stocks, and they can be medium-risk, high-reward. 

Do some research into the mutual funds available in your country, and consult with a trusted financial advisor to determine which ones to go for. 

3. Add extra funds to the Cenoa Super Wallet

Cenoa is a savings app that lets users buy digital dollars that are always on par with USD. For investors in countries facing currency depreciation, it’s an opportunity to protect your savings by keeping them as digital dollars. There are no fees to use Cenoa, and you can withdraw your funds at any time. 

Plus, Cenoa has a yield of up to 5%, which means you can watch your savings grow in real time. 

4. Use employer retirement matching benefits

Gen Z investors getting into the workforce are often surprised to learn about the power of employer retirement matching. It’s expected that Gen Z will need to save up to 3 million dollars by the time they retire in order to live comfortably in their older years. 

So if an employer matches 3%, 4%, or even 10% of contributions to a retirement fund, it’ll add up significantly over time, helping you take advantage of compounding interest much more effectively. 

Gen Z investors have the luxury of time — so get started now!

Learn more about how Cenoa can help Gen Z investors in emerging markets build up both short-term and long-term wealth