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How Different Generations Think About Investing

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How Different Generations Think About Investing

How Different Generations Think About Investing

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Every generation thinks about investing a little differently.

This is partially due to the fact that each cohort finds itself on a distinct leg of life’s journey. While boomers focus on retirement, Gen Zers are thinking about education and careers. As a result, it’s not surprising to find that investment objectives can differ by age group.

However, there are other major reasons that contribute to each unique generational view. For example, what major world events shaped the mindset of each generation? Also, what role did culture play, and how do things like economic cycles factor in?

Finding Generational Discrepancies

Today’s infographic comes to us from Raconteur, and it showcases some of the most significant differences in how generations think about investing.

Let’s dive into some of the most interesting data:

1. Investment Outlook

The majority of millennials (66%) are confident about investment opportunities in the next 12 months. This drops down to 49% when boomers are asked the same question.

2. Volatility

How did different generations of investors react to recent bouts of volatility in the market?

  • 82% of millennials made changes to their portfolios
  • 69% of Gen X made changes
  • 47% of boomers made changes
  • 32% of the Silent Generation made changes

3. Knowledge and Ability

In terms of investment knowledge, 42% of millennials considered themselves to be experts in the field. On the same question, only 23% of boomers could say the same.

4. Financial Goals

Back when they were 27 years old, 45% of Gen Xers said their primary goal was to buy a home. Compare this to just 23% of millennials that consider a home to be their primary investment objective today.

5. Managing Investments

The majority of millennials (66%) saw the ability to manage all aspects of personal finance, including investments, in the same app as being important. Only 35% of boomers agreed.

Similarly, 67% of millennials saw recommendations made by artificial intelligence as being a basic part of any investment platform. Both Gen Xers and Baby Boomers were more hesitant, with 30% seeing computer-based recommendations as being integral.

6. Impact Investing

Millennials are twice as interested in ESG (environmental, social, and governance) investing, compared to their boomer counterparts. In fact, the majority of millennials (66%) choose funds according to ESG considerations.

Reasons for Not Investing

While generations may have varying investment philosophies, they seem a little more in sync when it comes to having reasons not to invest.

StatementMillennialsGen XBoomers
Recognize future outlook would be better if they start investing72%73%57%
Want to try out investing with a low money commitment35%31%25%
Afraid of losing everything42%29%28%
Too worried about current financial situation to think about future49%46%32%
Find information about investing difficult to understand63%59%55%
Don't have enough money to start investing55%59%56%

There are some similarities in the data here – for example, non-investors of all generations seem to have an equally tough time learning about investing, and similar proportions do not believe they have the funds to start investing.

On the flipside, it seems that millennials are more worried about their financial future, while simultaneously seeing a risk of “losing everything” stemming from investing.

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Demographics

Ranked: The 100 Most Spoken Languages Around the World

This detailed visualization breaks down the 100 most spoken languages around the world, by total and native speakers. Can you find yours on the list?

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Ranked: The 100 Most Spoken Languages Worldwide

Even though you’re reading this article in English, there’s a good chance it might not be your mother tongue. Of the billion-strong English speakers in the world, only 33% consider it their native language.

The popularity of a language depends greatly on utility and geographic location. Additionally, how we measure the spread of world languages can vary greatly depending on whether you look at total speakers or native speakers.

Today’s detailed visualization from WordTips illustrates the 100 most spoken languages in the world, the number of native speakers for each language, and the origin tree that each language has branched out from.

How Do You Define A Language?

The data comes from the 22nd edition of Ethnologue, a database covering a majority of the world’s population, detailing approximately 7,111 living languages in existence today.

The definitions of languages are often dynamic, blurring the lines around a singular understanding of what makes a language:

  • Linguistic: focused on lexical and grammatical differences, or on variations within speech communities
  • Social: focused on cultural or political factors, as well as heritage and identity

For the purposes of measurement, the researchers use the ISO 693-3 set of criteria, which accounts for related varieties and dialects—ensuring that linguistics are not the only factor considered in this count of languages.

Here are the language origins of the 100 most spoken languages:

The-100-Most-Spoken-Languages-in-the-World_Supplemental

Indo-European languages have the widest spread worldwide. According to Ethnologue, the language family contains over 3 billion speakers in total. Interestingly, there are actually 1,526 Niger-Congo languages altogether, though only 12 are represented here.

Let’s now dive into the top 10 most spoken languages overall.

Which Languages Have the Most Speakers?

It comes as no surprise that English reigns supreme, with over 1.1 billion total speakers—or roughly 15% of the global population. Mandarin Chinese, Hindi, Spanish, and French round out the top five.

RankLanguageTotal SpeakersLanguage Origin
1English1,132 millionIndo-European
2Mandarin Chinese1,117 millionSino-Tibetan
3Hindi615 millionIndo-European
4Spanish534 millionIndo-European
5French280 millionIndo-European
6Standard Arabic274 millionAfro-Asiatic
7Bengali265 millionIndo-European
8Russian258 millionIndo-European
9Portuguese234 millionIndo-European
10Indonesian199 millionAustronesian

However, this is only one piece in the full fabric of languages.

The metrics for native speakers tell a slightly different tale, as Mandarin Chinese shoots up to 918 million—almost 2.5x that of English native speakers.

RankLanguageNative SpeakersLanguage Origin
1Mandarin Chinese918 millionSino-Tibetan
2Spanish460 millionIndo-European
3English379 millionIndo-European
4Hindi341 millionIndo-European
5Bengali228 millionIndo-European
6Portuguese221 millionIndo-European
7Russian154 millionIndo-European
8Japanese128 millionJapanic
9Western Punjabi93 millionIndo-European
10Marathi83 millionIndo-European

Note: No native speaker data was available for Filipino, Standard Arabic, Nigerian Pidgin, or Cameroonian Pidgin.

Here, Spanish comes in strong second for native speakers with 460 million, considering it’s well-used across Latin America. The Indian languages of Hindi and Bengali cap off the top five by native speakers as well.

These are the biggest languages people learn growing up, but what about the ones they pick up later in life?

What About Second (L2) Languages?

Nearly 43% of the world’s population is bilingual, with the ability to switch between two languages with ease.

From the data, second language (L2) speakers can be calculated by looking at the difference between native and total speakers, as a proportion of the total. For example, 66% of English speakers learned it as a second language.

Swahili surprisingly has the highest ratio of L2 speakers to total speakers—although it only has 16 million native speakers, this shoots up to 98 million total speakers. Overall, 82% of Swahili speakers know it as a second language.

Swahili is listed as a national or official language in several African countries: Tanzania, Kenya, Uganda, and the Democratic Republic of Congo. It’s likely that the movement of people from rural areas into big cities in search of better economic opportunities, is what’s boosting the adoption of Swahili as a second language.

Indonesian is another similar example. With a 78% proportion of L2 speakers compared to total speakers, this variation on the Malay language has been used as the lingua franca across the islands for a long time. In contrast, only 17% of Mandarin speakers know it as a second language, perhaps because it is one of the most challenging languages to learn.

Keeping Language Traditions Alive

Languages are fluid, and constantly evolving—altogether, the 100 most spoken languages paint a unique picture across centuries of a changing world. Here’s the full list of these languages, by types of speakers and language origin.

RankLanguageTotal SpeakersNative SpeakersOrigin
1English1,132M379MIndo-European
2Mandarin Chinese1,117M918MSino-Tibetan
3Hindi615M341MIndo-European
4Spanish534M460MIndo-European
5French280M77MIndo-European
6Standard Arabic274MNAAfro-Asiatic
7Bengali265M228MIndo-European
8Russian258M154MIndo-European
9Portuguese234M221MIndo-European
10Indonesian199M43MAustronesian
11Urdu170M69MIndo-European
12Standard German132M76MIndo-European
13Japanese128M128MJapanic
14Swahili98M16MNiger-Congo
15Marathi95M83MIndo-European
16Telugu93M82MDravidian
17Western Punjabi93M93MIndo-European
18Wu Chinese82M81MSino-Tibetan
19Tamil81M75MDravidian
20Turkish80M69MTurkic
21Korean77M77MKoreanic
22Vietnamese77M76MAustronesian
23Yue Chinese74M73MSino-Tibetan
24Javanese68M68MAustronesian
25Italian68M65MIndo-European
26Egyptian Spoken Arabic65M65MAfro-Asiatic
27Hausa63M44MAfro-Asiatic
28Thai61M21MKra-Dai
29Gujarati61M56MIndo-European
30Kannada56M44MDravidian
31Iranian Persian53M53MIndo-European
32Bhojpuri52M52MIndo-European
33Southern Min Chinese50M50MSino-Tibetan
34Hakka Chinese48M48MSino-Tibetan
35Jinyu Chinese47M47MSino-Tibetan
36Filipino45MNAAustronesian
37Burmese43M33MSino-Tibetan
38Polish40M40MIndo-European
39Yoruba40M38MNiger-Congo
40Odia38M34MIndo-European
41Malayalam38M37MDravidian
42Xiang Chinese37M37MSino-Tibetan
43Maithili34M34MIndo-European
44Ukrainian33M27MIndo-European
45Moroccan Spoken Arabic33M27MAfro-Asiatic
46Eastern Punjabi33M33MIndo-European
47Sunda32M32MAustronesian
48Algerian Spoken Arabic32M29MAfro-Asiatic
49Sudanese Spoken Arabic32M32MAfro-Asiatic
50Nigerian Pidgin30MNAIndo-European
51Zulu28M12MNiger-Congo
52Igbo27M27MNiger-Congo
53Amharic26M22MAfro-Asiatic
54Northern Uzbek25M25MTurkic
55Sindhi25M25MIndo-European
56North Levantine Spoken Arabic25M25MAfro-Asiatic
57Nepali25M16MIndo-European
58Romanian24M24MIndo-European
59Tagalog24M24MAustronesian
60Dutch23M23MIndo-European
61Sa'idi Spoken Arabic22M22MAfro-Asiatic
62Gan Chinese22M22MSino-Tibetan
63Northern Pashto21M21MIndo-European
64Magahi21M21MIndo-European
65Saraiki20M20MIndo-European
66Xhosa19M8MNiger-Congo
67Malay19M16MAustronesian
68Khmer18M17MAustronesian
69Afrikaans18M7MIndo-European
70Sinhala17M15MIndo-European
71Somali16M16MAfro-Asiatic
72Chhattisgarhi16M16MIndo-European
73Cebuano16M16MAustronesian
74Mesopotamian Spoken Arabic16M16MAfro-Asiatic
75Assamese15M15MIndo-European
76Northeastern Thai15M15MKra-Dai
77Northern Kurdish15M15MIndo-European
78Hijazi Spoken Arabic15M15MAfro-Asiatic
79Nigerian Fulfulde14M14MNiger-Congo
80Bavarian14M14MIndo-European
81Bamanankan14M4MNiger-Congo
82South Azerbaijani14M14MTurkic
83Northern Sotho14M5MNiger-Congo
84Setswana14M6MNiger-Congo
85Souther Sotho14M6MNiger-Congo
86Czech13M11MIndo-European
87Greek13M13MIndo-European
88Chittagonian13M13MIndo-European
89Kazakh13M13MTurkic
90Swedish13M10MIndo-European
91Deccan13M13MIndo-European
92Hungarian13M13MUralic
93Jula12M2MNiger-Congo
94Sadri12M5MIndo-European
95Kinyarwanda12M12MNiger-Congo
96Cameroonian Pidgin12MNAIndo-European
97Sylheti12M10MIndo-European
98South Levantine Spoken Arabic12M12MAfro-Asiatic
99Tunisian Spoken Arabic12M12MAfro-Asiatic
100Sanaani Spoken Arabic11M11MAfro-Asiatic

One reason these languages are popular is that they are actively and consistently used. Unfortunately, nearly 3,000 (about 40%) of all languages are at risk of being lost, or are already in the process of dying out today.

Languages play a crucial role in our daily lives. … [Their] losses have huge negative impacts indigenous peoples’ most basic human rights.

—UN, IYoIL statement

As a result, the United Nations declared 2019 the International Year of Indigenous Languages (IYoIL), with a resolution to continue fostering these languages and pass on their knowledge for future generations.

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Demographics

Mapped: The Ins and Outs of Remittance Flows

Every year, migrant workers send billions of dollars back to their home countries—reaching $550 billion in 2019. Where do these remittance flows wind up?

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Mapped: The Ins and Outs of Remittance Flows

The global immigrant population is growing at a robust pace, and their aggregate force is one to be reckoned with. In 2019, migrants collectively sent $550.5 billion in money back to their home countries—money transfer flows that are also known as remittances.

Remittances serve as an economic lifeline around the world, particularly for low- and middle-income countries (LMICs). Today’s visualization relies on the latest data from the World Bank to create a snapshot of these global remittance flows.

Where do most of these remittances come from, and which countries are the biggest recipients?

Remittances: An Origin Story

Remittances are a type of capital flow, with significant impacts on the places they wind up. These money transfers have surpassed official aid being sent to LMICs for decades, and in this day and age, are rivaling even Foreign Direct Investment (FDI) flows.

Remittance flows mainly help improve basic living standards such as housing, healthcare, and education, with leftover funds going towards other parts of the economy. They can also be a means for increasing the social mobility of family and friends back home.

Altogether, 50% of remittances are sent in either U.S. dollars, or the closely-linked currencies of Gulf Cooperation Council (GCC) countries, such as the Saudi riyal. It’s not surprising then, that the U.S. is the biggest origin country of remittances, contributing $68.5 billion in 2018—more than double that of the next-highest country, Saudi Arabia, at $33.6 billion.

Remittance Flows As A Safety Net

The impact of remittances on LMICs can vary depending on what you measure. In absolute terms, the top 10 LMIC recipients received $350 billion, or nearly 64% of total remittances in 2019.

Top Remittance Recipients in 2019 (USD)

RankCountryRemittance Inflows% of Nominal GDP
#1🇮🇳 India$82.2B2.8%
#2🇨🇳 China$70.3B0.5%
#3🇲🇽 Mexico$38.7B3.1%
#4🇵🇭 Philippines$35.1B9.8%
#5🇪🇬 Egypt$26.4B8.8%
#6🇳🇬 Nigeria$25.4B5.7%
#7🇵🇰 Pakistan$21.9B7.9%
#8🇧🇩 Bangladesh$17.5B5.5%
#9🇻🇳 Vietnam$16.7B6.4%
#10🇺🇦 Ukraine$15.9B11.8%

India tops the chart as the largest remittances beneficiary, followed by China and Mexico. Interestingly, these three countries are also the main destinations of remittance flows from the U.S., but in the reverse order. Mexico and the U.S. have one of the most interconnected remittance corridors in the world.

However, the chart above makes it clear that simply counting the dollars is only one part of the picture. Despite these multi-billion dollar numbers, remittances are equal to only a fraction of these economies.

By looking at remittances as a percentage of nominal GDP, it’s clear that they can have an outsize impact on nations, even if the overall value of flows are much lower in comparison.

Top Remittance Recipients in 2019 (% of GDP)

RankCountryRemittance Inflows% of Nominal GDP
#1🇹🇴 Tonga$0.19B38.5%
#2🇭🇹 Haiti$3.3B34.3%
#3🇳🇵 Nepal$8.6B29.9%
#4🇹🇯 Tajikistan$2.3B29.7%
#5🇰🇬 Kyrgyz Republic$2.4B29.6%
#6🇭🇳 Honduras$5.3B21.4%
#7🇸🇻 El Salvador$5.6B20.8%
#8🇰🇲 Comoros$0.14B19.3%
#9🇼🇸 Samoa$0.17B18.4%
#10🇵🇸 West Bank and Gaza$2.6B17.6%

It’s clear that the cash influxes provided by remittances are crucial to many smaller countries. Take the Polynesian archipelago of Tonga, for example: even though it only saw $190 million in remittances from abroad, that amount accounts for nearly 40% of the country’s nominal GDP.

Will The Remittance Tides Turn?

The World Bank projects remittance flows to increase to nearly $600 billion by 2021. But are such projections of future remittance flows reliable? The researchers offer two reasons why remittances may ebb and flow.

On one hand, anti-immigration sentiment across major economies could complicate this growth, as evidenced by Brexit. The good news? That doesn’t stop immigration itself from taking place. Instead, where these migrants and their money end up, are constantly in flux.

This means that as immigration steadily grows, so will remittance flows. What’s more, fintech innovations have the potential to bolster this progress, by making money transfers cheaper and easier to access.

Tackling [high transaction costs] is crucial not only for economic and social development, but also for improving financial inclusion.

UN ESCAP, Oct 2019

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