Market momentum

About 25% of American adults want to start investing in the stock market this year, and younger adults are leading the way. Almost half (42%) of those aged 18–29 said they are considering investing for the first time before year’s end, according to a recent CivicScience survey. The answers validate analysis by the JPMorganChase Institute that shows young adults have shifted from buying a starter home to investing in the stock market to build wealth.

More than one-third of 25-year-olds contributed to investment accounts in 2024, six times more than the previous decade, according to JPMorgan researchers. Lower-income individuals invested at a greater pace than investors above the median income level during this period. This steep rise coincided with a rise in the median age of first-time homebuyers to 40 last year, compared to 32 a decade ago, according to the National Association of Realtors. The typical sale price for a smaller, more affordable starter home exceeded $260,000 last year, more than double the 2015 price of $110,000, according to Redfin data. Analysts at JPMorgan caution that greater reliance on the stock market, with its short-term volatility, could lead to increased financial instability compared to home-appreciation expectations.

Over half of Americans lack emergency funds

The National Foundation for Credit Counseling said Feb. 12 consumer use of debt for necessities, instead of discretionary spending, reached an all-time high last year. Total American household debt is approaching $19 trillion, according to the Federal Reserve, and a record number of consumers lack enough money to repay debts after covering basic necessities. Analysts expect the trend to continue in 2026. Less than half of Americans say they have enough cash on hand to cover an unexpected $1,000 emergency, according to a recent Bankrate survey. Almost 30% have more credit-card debt than emergency savings.

For those trying to dig themselves out of a hole, paying down credit-card debt and increasing emergency savings is proving difficult. Just 31% of respondents said they are doing both at the same time. Bankrate financial analyst Stephen Kates recommends increasing income rather than searching for more expenses to cut when building an emergency fund. —T.V.

“Finfluencer” savings

Americans are increasingly following and finding savings from social media influencers. People who frequent FinTok scrolled for more than 400 hours, on average, last year in TikTok’s financial advice ecosystem. The validity of advice on social media is debatable, but three-fourths of 2,000 respondents in a Talker Research survey said they trust the advice they got. Almost 60% said they saved over $400 by trying money-saving trends like low-budget living, no-spend September, and the budget bucket challenge. Social media ranks third, behind friends and family and financial advisers, for financial advice, according to an analysis by Bankrate. —T.V.