Young People spending stimulus on stocks?

[dougules]

So according to a Deutsche Bank survey a significant portion of people in the US are planning to buy stocks with their stimulus checks.  Also, it looks like it's much more young people than older.  I was surprised by that.  I was curious to hear what other folks have to say about it, especially anybody that isn't surprised by it. 

https://www.cnbc.com/2021/03/08/how-the-young-plan-to-spend-stimulus-checks-deutsche-bank.html

[zolotiyeruki]

It doesn't surprise me.  For the vast majority of the US who have been able to keep their jobs, the stimulus checks are just extra income.  Several weeks ago we took an informal poll among the engineers at my office, and none of them had spent their stimulus checks.  They either had just saved the money, or invested it.  The folks down in manufacturing seem have a different relationship with money, so I don't know if they spent it, saved it, etc.

[chemistk]

I'm technically a young person, although I feel like I'm 45 most days (29 actually).

None of my friends have kids, and all of them have saved or invested it.

I, with 3 kids and in desperate need of a house, have spent the stimulus on family needs & saved the rest for a house downpayment.

I'd bet that many over ~25 with higher incomes and reasonable to low debt have invested the cash. Moreso if they are even mildly familiar with how to navigate the investing world.

[tooqk4u22]

That's pretty consistent with how most stimulus payments were used.   Most either saved/invested or payed down debt.......ie not economically stimulative.  I am sure data from the year end stimulus and the pending one will prove out to be the same.   But hey, its not our money. 


Most Stimulus Payments Were Saved or Applied to Debt

This Is How Americans Actually Used Their First Stimulus Checks

[ontheheel]

I'm 36 (wife is 40) and will be investing 80% of our upcoming stimulus funds. 80% of the previous stimulus went to padding our emergency fund. 100% of the one before that went to purchasing a used minivan. We'll also be investing 100% of the extra CTC funds that will start rolling in soon.

Just broke into the 250-500k race this month and with market volatility, this will help keep us from dropping back to the 100-250k race (in addition to our regular saving/investing, of course). With all the extra government money, this will be the first year that we've maxed out every tax-advantaged account ($31,500), and get to put real money into a taxable brokerage account. That wasn't supposed to happen until next year, after scheduled raises this September (promotion), next January (annual), and next March (longevity).

[alcon835]

I just barely make the MAGI cut for maximum stimulus. No kids, solid job, and had the best bonus year of my life. Stimulus is going directly toward FIRE - just as the first two did.

I'm 34, so depending on when you make the cut, I may or may not be included.

[BlueMR2]

Day trading is the younger version of the lottery.  It's drawing everyone that wants to strike it rich quick.  My news feeds are just filled with all these younger people I know running all their different "methods" and dumping in every dollar they can get their hands on.  Have seen a couple quit recently after taking some big losses.  Not really sure if it's better or worse than the lottery.  More likely to come out ahead overall, but the risk of catastrophe is also really high.

[maizefolk]

I think the key statement is "An online survey of 430 investors who use online broker platforms found ..."

If you exclude things like retirement plans, only something like 14% of americans actually own individual stocks and so would use things like online broker platforms. So don't treat the survey results from the article as representative of the US as a whole, but of that subset of 14% of so of americans.

[Steeze]

I heard an ad on the radio that went something like:

“Spend your 2021 stimulus and receive 21% off on purchases over $1400, there has been no better time to get the fine jewelry you’ve been wanting. Use your stimulus and get FREE jewelry with your FREE government money, why wait!?”

[dougules]

I think the key statement is "An online survey of 430 investors who use online broker platforms found ..."

If you exclude things like retirement plans, only something like 14% of americans actually own individual stocks and so would use things like online broker platforms. So don't treat the survey results from the article as representative of the US as a whole, but of that subset of 14% of so of americans.

Good point.  I guess the article is a little misleading. 

[talltexan]

If you've managed to continue at your job remotely, and haven't been able to keep vacation plans, the cash that would normally be spent on that mobility is piling up.

If you've experienced job insecurity, then it's a different story.