Britain's youngest investors are leading the way. Now they need the financial literacy to match

Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Barclays browser-verified publication index Official publication date: 2026-07-15 Captured: 2026-07-18T16:32:05.391Z

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Read time: 4 minutes

July 15 2026

• Barclays research shows Gen Z investors top up their portfolios 12 times a year on average, more frequently than Millennials, Gen X and Baby Boomers

• Just 1% of Gen Z investors have not added anything to their investments in the past 12 months, compared with 17% of investors nationally

• 31% of Gen Z adults rate their understanding of investing terminology as high, compared with 21% nationally

• 28% of Gen Z adults say they are highly confident identifying investment opportunities that match their goals, versus 20% nationally

• 61% of Gen Z adults demonstrate poor financial literacy, the highest proportion of any generation

• One in five Gen Z adults already use AI to inform or make financial decisions, double the national average of 10%

• 17% of Gen Z investors say social media influencers encouraged them to start investing, almost twice the national average of 9%

Britain's relationship with money is changing.

For the past few years, conversations about household finances have understandably centred on pressure. A rising cost of living, higher borrowing costs and economic uncertainty have forced people to pay closer attention to their finances than ever before.

Yet while some of those pressures have begun to ease in recent weeks, our data shows that a different challenge is emerging. The challenge is no longer simply managing today's finances but feeling confident enough to plan for tomorrow.

That question sits at the heart of Barclays' new Financial Confidence Index, which combines anonymised customer data, nationally representative consumer research and independent economic analysis to provide a broader picture of how people are managing money, building resilience and planning ahead.

The inaugural findings reveal a nation that is increasingly engaged with its finances yet not always translating that engagement into action.

What's particularly striking is how closely those findings align with the spending behaviours we have seen throughout the first half of 2026.

Investing has become a habit

Gen Z investors say they top up their investment accounts 12 times a year

One notable finding from the Investment Readiness Index is the frequency with which Gen Z investors engage with their portfolios.

On average, Gen Z investors say they top up their investment accounts 12 times a year – more frequently than Millennials, Gen X and Baby Boomers. Just 1% say they have not added anything to their investments in the past 12 months.

Not to mention that whether or not this data point is encouraging depends on whether that frequency is underpinned by informed decision-making. Regular contributions can be a valuable investing habit, particularly when they are part of a considered, long-term approach.

But frequent engagement can also risk tipping into overconfidence, short-term decision-making or reacting too quickly to market noise – not to mention that more transactions may equate to paying more in trading fees, depending on the platform.

For many years, the industry's challenge was persuading people to take their first step into investing. Increasingly, younger adults have already done so.

The next challenge is making sure that high levels of engagement are supported by the knowledge, discipline and understanding needed to make informed choices over the long term.

Confidence is growing. Financial literacy is not

Alongside stronger investing habits comes greater confidence.

Almost a third (31%) of Gen Z adults rate their understanding of investing terminology as high, while 28% believe they are good at identifying investment opportunities that match their goals – significantly above the national average.

Confidence is important. People who feel capable of making financial decisions are more likely to engage with investing in the first place. But confidence alone does not guarantee good outcomes.

Despite appearing confident that they’re making good investment decisions, Gen Z adults demonstrate poorer financial literacy than other generations, so maybe their judgement when it comes to investing, isn’t as good as they think.

Only 39% correctly answered at least two of the widely used "Big Three" financial literacy questions, covering compound interest, inflation and diversification. Across all age groups, the figure rises to 63%.

The findings highlight the importance of ensuring that greater participation is matched by greater understanding. As investing becomes more accessible, financial literacy becomes more important, not less.

Friends, feeds and fintech

The way Gen Z learns about investing is also changing.

Nearly a third (32%) of Gen Z investors say encouragement from family or friends influenced their decision to start investing, while 17% say social media influencers played a role. One in five (20%) already use AI to inform or make financial decisions.

These developments reflect the democratisation of financial information. Today's investors have access to more content, opinions and tools than any generation before them.

That is largely positive. Social media, digital communities and emerging technologies can make investing feel more accessible and less intimidating. They can help people engage with financial topics that might otherwise seem out of reach.

However, wider accessibility is a double-edged sword. The barrier is no longer finding investment content but identifying credible information.

In a world where financial advice is available at the swipe of a screen, the ability to distinguish trustworthy guidance from speculation, misinformation and poor-quality advice is becoming an increasingly important financial skill.

Turning confidence into capability

The overall story is an encouraging one.

Britain's youngest investors are already displaying many of the behaviours associated with long-term investing success. They are starting earlier, investing more regularly and engaging more actively with their finances than previous generations.

The challenge now is not getting young people interested in investing. Many already are.

Instead, the focus should be on helping them build the knowledge that supports those behaviours. Better financial education, clearer guidance and a stronger understanding of risk will all play an important role in helping young investors make informed decisions throughout their lives.

If Gen Z's enthusiasm for investing can be matched by better financial literacy, the UK will be one step closer to building the stronger investing culture it has long been striving to create.

The Index combines proprietary Barclays data, nationally representative survey research collated by Opinium Research, and economic modelling by the Centre for Economics and Business Research (Cebr). Unless otherwise stated, the consumer research in this article was carried out between 9th – 16th February by Opinium Research on behalf of Barclays. There were 3,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group. Opinium adheres to Market Research Society (MRS) standards for respondent verification and transparency. All respondents were verified through Opinium’s rigorous identity validation and data quality processes.

The Consumer Sentiment research was carried out between 27th – 31st March by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group.

Additional consumer research to understand the impact of global instability was carried out between 4th – 7th April by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group.

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