Peer-Inspired Investing and Financial Anxiety: Does Generation Classification Matter?

Olajide, Olamide; Sanders, Kaplan

doi:10.2478/fprj-2025-0011

Abstract

This study explores how peer-inspired motivation to invest relates to financial anxiety through a generational lens. Analysing the 2021 National Financial Capability Study (NFCS) with ordered logit models reveals a significant, positive association between peer influence and financial anxiety. Gen X, Millennials, and Gen Z each report higher financial anxiety compared to Baby Boomers. Interaction effects show that Millennials and Gen X who invest due to peer influence report significantly higher levels of financial anxiety compared to Baby Boomers. These findings have important implications for individuals and financial planners working to improve their clients’ financial well-being.

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Peer-Inspired Investing and Financial Anxiety: Does Generation Classification Matter?

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