Investing has never been more accessible. With a few taps on a smartphone, you can buy a share of Amazon, invest in an ETF, or even dip a toe into the crypto market. But despite this democratization of finance, misinformation still thrives—especially among younger generations navigating the complex world of investing for the first time.
From TikTok hot takes to outdated advice handed down from older relatives, there’s no shortage of myths that hold people back. And for many young investors, believing the wrong thing can mean missing out on some of the most important financial opportunities of their lives.
Let’s explore some of the most persistent investing myths—and why it’s time to leave them behind.
“I don’t have enough money to start investing.”
This is probably the most common and most damaging myth for young investors. Many people assume you need thousands of euros or dollars just to open an investment account. In reality, most platforms today offer fractional shares and low-to-zero minimum investment options. Apps like Trading212, Revolut, and Robinhood (in the U.S.) have drastically lowered the barriers to entry.
Statistically, younger adults are hesitant: a 2024 Charles Schwab study found that only 39% of Gen Z (ages 18–27) are currently investing in the stock market, primarily due to the belief that they “don’t earn enough.” But when you delay investing, you’re not just waiting—you’re losing time, and time is the most powerful asset when it comes to compounding.
If you invest just € 50/month starting at age 25 with an average annual return of 7%, by age 65 you’ll have over € 130,000. Wait just 10 years, and that figure drops by nearly half.
“The stock market is too risky—I might lose everything.”
Risk is real. But so is reward. The idea that investing in stocks is like gambling ignores decades of long-term performance data. Since 1928, the S&P 500 has returned an average of around 10% per year, despite recessions, wars, and crises.
Yes, markets fluctuate. Yes, there will be bear markets (2022 was a brutal example, with global equities dropping over 20%). But markets also recover. In fact, missing just the 10 best days in the market over a 20-year period could slash your returns by more than half, according to JP Morgan’s 2023 Guide to the Markets.
The real risk isn’t investing—it’s not investing and watching your savings lose value to inflation.
“I’ll wait until I make more money to start.”
This one is tricky because it feels rational. But waiting to earn more can easily become an excuse. Most people don’t suddenly find themselves with “extra” money—lifestyle inflation tends to keep pace with income. What changes your financial trajectory isn’t how much you earn, but how much you keep and invest.
Starting small builds a habit. It also leverages time, which beats timing. A Fidelity analysis from 2024 showed that investors who started in their 20s—even with modest contributions—outperformed late starters who invested larger sums but missed the early compounding years.
“I need to be an expert to invest.”
Not anymore. You don’t need a finance degree to get started. While it’s true that knowledge helps, there’s a big difference between informed investing and paralysis-by-analysis. Index funds, for example, offer broad market exposure with minimal fees and are endorsed by investing legends like Warren Buffett for beginners.
Robo-advisors, now managing over $1.8 trillion globally (as of early 2025, per Statista), use algorithms to build diversified portfolios based on your risk tolerance. They’re a great way to get started without overthinking it.
“Cryptocurrency is the only way to get rich fast.”
Crypto has created wealth—but it has also created chaos. While some early adopters saw astronomical returns, many latecomers lost substantial sums. After the 2021 bull run, crypto markets lost over $ 2 trillion in value by mid-2022, and volatility has continued into 2025, with Bitcoin bouncing between $ 25,000 and $ 70,000 in a single 12-month span.
Crypto can be a small part of a diversified portfolio if you believe in the long-term potential of blockchain technology. But putting all your money into meme coins is not investing—it’s speculation. Treat it accordingly.
What Young Investors Should Believe Instead
Rather than get bogged down by myths, young investors should internalize a few grounded truths:
- You do have enough to start, even if it’s € 10.
- Time beats timing. Start early, stay consistent.
- Diversification lowers risk. You don’t need to bet on individual stocks.
- Fees matter. Choose low-cost ETFs or index funds when possible.
- You’re learning. Mistakes are part of the journey—just start small.
Shaping a Smarter Investing Mindset
Every investor starts somewhere—and most start out confused. That’s normal. But the earlier you separate myth from reality, the sooner your money can start working for you.
The truth is, you don’t need to be rich, a genius, or lucky to invest well. You need a long-term mindset, a willingness to learn, and the courage to start. Don’t let outdated beliefs dictate your future wealth. The best time to begin was yesterday. The second-best time? Today.
