5 Investing Habits Gen Z Can Use in a Turbulent Market
The economy feels impossible to read right now for seemingly every age and tax bracket. Between stubborn inflation, interest rate uncertainty and a stock market that seems to swing on vibes alone, even seasoned investors are doing a double-take.
For Gen Z, a generation now trying to build wealth amid all this noise, figuring out where to put your money can feel genuinely overwhelming. Whether you're just getting started or trying to level up a portfolio you've already built, these five tips are designed to help you stop second-guessing and start making your money work, no finance degree required.
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With that in mind, Eric Kelley, chief investment officer at UMB Bank, cut through the confusion to offer a handful of wise tips to manage your investments when the economy is challenging.
1. Don't Act on Panic
Whatever you do when economic signs get confusing, don't panic and make drastic financial moves based on said panic. Since President Trump has been in office, the stock market has dipped, recovered, dipped again and recovered again. So, if you act on panic, it creates a vicious cycle that rarely ends well.
Uncertainty, Kelley said, "makes everyone uncomfortable." But that doesn't mean you should make a financial move in response. Usually, it's best to stay the course.
2. Plan for the Long Term
Likewise, the best way to respond to confusing economic signals and weather short-term ups and downs is to have a solid long-term plan, Kelley said. You should know your risk tolerance, your asset allocation and "anchor back" to that when uncertainty and volatility increase.
"The folks that don't have really solid long-term financial plans are the people that get nervous and they sell low and buy high and things don't end up very well sometimes," he said.
Additionally, you should reevaluate your plan at the end of every year, ideally with a financial advisor.
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3. Focus on What's Important
If you're not clear on what a "solid financial plan" entails, Kelley suggested it's knowing what your short- and long-term goals are, such as retirement, paying for kids' college, buying a home and so on. Then, you need to ask some questions.
"What is your cash flow that you need now to live and how can you fund your long-term goals through savings? What's the maximum amount you can save? How do I match up my risk profile to my needs and my tolerance?"
If you have a plan and can follow it, especially if you aren't immediately retiring or making another big life change, "then you will be able to weather the storms without getting emotional. And that's the most important thing anybody can do," Kelley said.
4. Expect Volatility
In general, it's wise to expect some volatility and plan for it, Kelley said. This will especially be true throughout 2026.
"We do think that [we're] set up for a year where volatility is higher than it's been for a while ... So the average investor needs to figure out how to weather that and how to get themselves through that without getting emotional," he said.
5. Do the Math for Your Situation
If you don't have the luxury of long-term planning for reasons like retirement, you still have "the same metrics," Kelley said. Then it becomes about looking at the spending rate of the assets you've accumulated for retirement, and figuring out how much you can spend until or if you take Social Security.
If your portfolio doesn't quite seem like it will tolerate the market volatility, you might have to consider working a little longer or changing your spending plan.
"It's just a dance. You go through all the math and you look at the scenarios, you look at the risk that's required and you work your way through to a decision. It's just a different basket of variables if you're 60 as opposed to 30," Kelley said.
Caitlyn Moorhead contributed to the reporting for this article.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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