Youngsters being lured by get-rich quick scams
Youngsters saddled with massive student debt and struggling to get up the housing ladder are tempted to invest in get-rich-quick crypto schemes
Young people saddled with massive student debt and struggling to get up the housing ladder are being tempted to invest in “get-rich-quick” crypto schemes, a top fund manager warned.
A Schroders survey found that 68 percent of financial advisors were concerned about young people investing in crypto and digital assets, more than three times the number compared to last year.
It comes after recent figures from the Financial Conduct Authority (FCA) showed that the number of people investing – despite the watchdog warning that they should be prepared to lose all their money – more than doubled last year to 5 million.
‘Get rich quick’: A Schroders survey found that 68 percent of financial advisors were concerned about young people investing in crypto and digital assets
In some cases, the concern of financial advisors in the Schroders study was because older clients worry about their children wasting their “hard-earned money.”
Gillian Hepburn, head of UK intermediary solutions at Schroders, said it was no surprise that people were investing in crypto with student debts in excess of £45,000.
The survey also revealed how savers were impacted by the cost of living, and that 89 percent of advisors had clients who changed their plans as a result.
The FCA’s figures showed that crypto was most likely owned by men under the age of 45. More than half of adults aged 18-24 have less than £100, while those aged 45 and over are more likely than other age groups to have more than £100. Worth £1,000 or more.