By Aditi Roy

As Toronto Metropolitan University (TMU) students have taken to investing in hopes of capitalizing on compound interest and securing higher savings, experts caution the risk of large losses and falling prey to misinformation.

Students across campus are starting their investment journeys, influenced by social media and their peers, to start earning passive income via stocks and Exchange-traded Funds (ETFs). A CFA Institute of Research and Policy report from 2023 states that 65 per cent of American Gen Z’s invest in some form.

A 2025 Yahoo Finance article, states that this generation has preceded the average age of investment, with the average millennial investor being 25, and Gen Z investors being 19.

Willem Zhang a third-year global management studies student started his Tax Free Savings Account (TFSA) within hours of turning 18. He sees the rise in young investors as a generally positive trend.

“I think everyone’s investing in stocks,” he said, referring to the trend among his cohort.

Jonathan Attalla, a second-year business technology management student, began his journey after being influenced by his surroundings. “I started because [of] my friend…[I had also seen] a couple of videos on social media about how it’s important to grow your money,” he said.

Radha Maharaj, a finance professor at the University of Toronto Mississauga (UTM), categorizes this trend as a byproduct of “fear meets opportunity.”

“Gen Z’s are investing, because there’s a lot of financial anxiety, high student debt [and] housing [is not] affordable,” she said.

Maharaj attributes the increase in opportunity to the growth of technology and advanced investing systems. “Young people start investing really early because there are no minimums, no commissions and the interfaces are designed like social media,” she added.

Piraveen Mahadevan, a third-year business technology management student, also notes the anxiety behind these investments. “Students are trying to find multiple ways of income, whether that be a part-time job, investments, side hustles […] that’s why Gen Z wants to start investing early,” he said.

Experts fear that the presence of social media is severely altering students’ judgments when it comes to investing.

Maharaj points to the gamification of investment as a potential threat to young adults’ investment strategies. She also questions the legitimacy of popularized fin-fluencers, “some of them are just giving bad advice…some of them [are only giving] partial advice,” she said, adding that many don’t possess the credentials to be giving financial advice.

Mahadevan stays clear of such influencers, pointing his peers to established sources like Berkshire Hathaway and Yahoo Finance for information. “You’ll see [an] Instagram reel about a content creator who’s pitching a stock—I think lots of people might get swayed by that idea,” he said.

Zhang believes the social media pull is evoking students to make uninformed decisions. People around him “invest based on emotions and based on hype,” he said.

“Which is why a lot of students have quick wins, but also very quick losses,” he added.

A 2025 CBC article would second Zhang’s observation, reporting that the younger generation is tending to invest based on “vibes not research.”

Students say that their experiences with the stock market have taught them to tread lightly.

Attalla has realized the importance of the big picture and long term goals. “I was very impulsive [before]—I have been slowing down,” he said. He recounts his impulse purchase during the beginning of his investment journey, slowly realizing that hyperfocusing on stock fluctuations wasn’t healthy, and is now opting for a more holistic approach.

Mahadevan echoes this sentiment, advising students that “it’s all about playing the long game.”

He recognizes the volatility of the market and how “there are times where the stock market crashes or your portfolio is red, it does scare users [initially…] like me,” he adds.

Experts caution students from investing before forming a strong base knowledge of finance.

Daniel Richards, associate professor at the school of administrative studies at York University teaches a basic personal finance course offered at most universities to build their confidence. He notes the importance of “a structured program where we don’t really have an agenda” in comparison to internet personalities who may insert their own biases.

Zhang also feels concerned about the growing impatience of young investors.

“Not a lot of people are well informed about the process and the structural reasoning behind investing in the first place,” he said. “I think you do need that academic rigor to understand stocks.”

Though Maharaj sees early investment as a positive, she urges students to seek resources like their bank managers and university information sessions.

She notes that if investment is done “badly, you can be really burned, lose a lot of money, get discouraged and have burnout.”