Catenaa, Thursday, December 11, 2025-New research from the FINRA Investor Education Foundation reveals a slowdown in new investors entering US markets, shifting risk attitudes, and greater reliance on social media and finfluencers among younger investors.
The National Financial Capability Study (NFCS) surveyed 2,861 respondents with non-retirement investment accounts to assess behaviors, knowledge, and experiences.
The study found that only 8% of investors began investing in the past two years, down from 21% in 2021.
Ownership of non-retirement investments declined among young adults, men, and persons of color.
Willingness to take substantial investment risks dropped to 8% overall, and to 15% among investors under 35.
Despite this, younger investors continue high-risk behaviors, including trading options (43%) and margin purchases (22%).
Social media plays a growing role in investment decisions. About 29% of investors use social media for information, with YouTube most popular.
Over a quarter of respondents rely on recommendations from influencers, rising to 61% among investors under 35 and 57% for those with less than two years’ experience.
Meme stock participation is reported by 13% of investors, including nearly one-third of those under 35. Interest in cryptocurrency remained steady at 27%, though consideration of new crypto investments dropped.
Investors’ knowledge gaps remain significant. On average, participants answered fewer than half of quiz questions correctly, with questions on margin and short selling proving most difficult. Concern over investment fraud rose to 37%, though most respondents do not believe they have been personally targeted.
FINRA study shows slower new investor growth, reduced risk tolerance, and rising influence of social media and finfluencers on younger U.S. investors.
