In recent years, “wealth building among young people”—primarily those in their 20s—has been attracting significant attention.
Thanks in part to the growing popularity of the “New NISA” and “iDeCo,” investing and asset management among young people are no longer just a passing fad but have become common options.
In this article, we’ll explain the “anxiety about the future” driving young people’s approach to wealth building, the “changes in how they gather information” unique to the digital native generation, and the often-overlooked risks and challenges—all while incorporating the latest trends making waves on the web and in magazines.
- 1. Why Are Young People Rushing to Build Wealth Now? The Underlying “Anxiety About the Future”
- 2. How Social Media and Video Platforms Have Transformed “Methods of Gathering Financial Information”
- 3. The “Risk of Misinformation” Lurking in the Online World and the Importance of Financial Literacy
- 4. “Prudent and Sustainable” Wealth-Building Approaches Chosen by Young People
- Summary: Creating a Supportive Environment as a Societal Challenge
1. Why Are Young People Rushing to Build Wealth Now? The Underlying “Anxiety About the Future”
In the past, “investing” was generally perceived as something done by people who had reached a certain age and possessed a substantial amount of capital.
However, young people in their 20s and 30s today are starting to build their wealth at an earlier stage.
Behind this trend lie the structural problems facing modern Japan.
The Collapse of Lifetime Employment and Increasing Labor Market Fluidity
In today’s Japanese society, the “steady upward trend in wages” and the “lifetime employment system” of the past are effectively collapsing.
With the rise of non-regular employment and greater labor market fluidity, it has become difficult to rely on a single company for lifelong security.
The current reality—where young people can no longer envision a future where “working a normal job guarantees a secure retirement”—is instilling a sense of crisis in them.
A Vague Distrust of the Social Security System and Pensions
Amid an accelerating decline in birthrates and an aging population, anxiety among young people regarding reduced future pension benefits and a higher retirement age is deeply entrenched.
As a result of a rapidly growing mindset of self-reliance—reflected in the belief that “we cannot rely on the government or companies” and “we must look out for ourselves”—asset building for young people has shifted from something “done if there’s extra money” to a “vital survival strategy” for getting by.
2. How Social Media and Video Platforms Have Transformed “Methods of Gathering Financial Information”
Changes in the digital environment are shaping the financial behavior of today’s young people.
The “digital native” generation, who have had the internet as a constant presence since birth, gathers information in ways that differ significantly from older generations.
Digital Channels That Have Lowered the Psychological Barrier to Investing
Today’s young people rarely visit the physical branches of financial institutions for advice or read thick business books.
Their primary sources of information are digital channels such as the following:
- Instagram and X (formerly Twitter)
Collecting practical tips from influencers of the same generation and easy-to-understand financial knowledge presented with illustrations - YouTube and TikTok
Video explanations by experts and approachable creators on how to get started with the new NISA and recommended stocks
By being exposed to financial information on a daily basis through these media, psychological barriers to investing—such as perceptions that it is “complicated” or “suspicious”—have dropped dramatically, and an increasing number of young people are quickly getting started with investing using just their smartphones.
Information Gathering Focused on “Time Performance”
Furthermore, young people tend to prioritize “time performance”—that is, obtaining information efficiently in a short amount of time.
Short videos that summarize key points in one minute and social media posts that can be read in a few seconds with a swipe are optimized for their lifestyles, and this is further accelerating the shift in how young people manage their money.
3. The “Risk of Misinformation” Lurking in the Online World and the Importance of Financial Literacy
While the spread of the internet and social media has lowered the barriers to investing, it has also created new risks.
A Mixed Bag of Information and Investment Problems
The financial information flooding the internet is of varying quality.
Among it are exaggerated advertisements promising “guaranteed profits” without scientific basis, enticements to high-risk investments, and even clever investment scam traps.
There is a growing risk that young people, who lack sufficient knowledge and experience, will take influencers’ words at face value and suffer significant financial losses based on misinformation.
The Need for “Information Discernment” and “Financial Education” Now More Than Ever
The most important steps to avoid these risks are improving “financial literacy (proper financial knowledge)” and “information literacy (the ability to discern truth from falsehood).”
In recent years, there has been a growing societal movement—including the mandatory inclusion of financial education in school curricula—but it is essential to go beyond simply teaching “how to start investing” and instead systematically learn foundational knowledge, such as the balance between risk and return and how interest rates work.
Armed with the right knowledge, young people can avoid being swayed by the flood of information and build the strongest shield to protect their assets.
4. “Prudent and Sustainable” Wealth-Building Approaches Chosen by Young People
So, how are young people actually building their wealth?
“Small Amounts, Regular Contributions, and Diversification” Are the Keywords
The approaches most favored by young people are sustainable methods that do not place a burden on their daily lives, such as the following:
- Making the Most of the New NISA and iDeCo
Smart Asset Management That Maximizes Tax Incentives - Regular-Contribution Mutual Funds
Small-scale investments—ranging from a few thousand to tens of thousands of yen per month—that can be made comfortably within your current disposable income - Index Investing
A long-term investment strategy that diversifies risk and tracks global economic growth
The fundamental premise of young people’s investment style is to “invest small amounts over the long term” with minimal effort by carefully balancing their investments against their current living expenses and setting up a system for automatic deductions from their bank accounts.
It can be said that this preference for stability—the desire to “avoid major failures”—is reflected in such prudent behavior.
Summary: Creating a Supportive Environment as a Societal Challenge
Wealth building among young people is not merely a personal financial game but an inevitable response to changes in the social environment.
However, it is dangerous to dismiss this as simply a matter of “personal responsibility.”
For young people to envision their future with confidence and grow their assets in a healthy manner, the following three elements are essential:
- Improving Institutional Frameworks: Continuing and expanding user-friendly tax-exempt programs such as NISA
- Strengthening Financial Education: Providing opportunities for practical and impartial financial education in schools and workplaces
- Improving the Information Environment: Strengthening the dissemination of clear and trustworthy information by financial institutions and government agencies
Creating an environment where young people can take their first steps with confidence, without being deceived, is a critical challenge for ensuring the sustainability of Japanese society as a whole.
Why not use this article as an opportunity to have a positive discussion with your family and friends about “your future life and building wealth”?
