3 Great Investment Vehicles for Gen Z Christians

As young people, sometimes even the word "investing" sounds like a rich-person term we just don't need, but this sentiment couldn't be further from the truth. The time value of our money is our single greatest investing asset - but only if we take advantage of it. Let's take a look at a few of the best investment instruments for young Christians - and one of the worst on the market.

Exchange Traded Funds

Exchange traded funds, or ETFs, are an easy way to get into investing with as little as $1. ETFs trade like single stocks but provide exposure to as many as 500+ individual holdings. This minimizes volatility - finance jargon for how much your position goes up and down. Investing in a well-diversified ETF allows you to net returns without all the risk associated with single stocks. See below for some quick stats on one of today's leading ETFs, and a biblically inspired pick:

• SPDR S&P 500 ETF Trust

  • 5-yr return: 68.49% (as of 04/09/26)

  • Exposure to a market cap-weighted index of US large- and mid-cap stocks selected by the S&P Committee.

• BIBL Inspire 100 ETF

  • 5-yr return: 48.5% (as of 04/09/26)

  • Exposure to biblically aligned large companies in the U.S.

Blue-chip Stocks

Believe it or not, gambling at the casino is not the best way to grow your money. But if you do choose to make the trip to Vegas, you'll notice pretty much every casino uses chips at their poker tables. A general rule of thumb is that blue chips are more valuable. Similarly, in the stock market, a blue-chip stock represents a valuable, stable company with a long track record of success. Sometimes these investments even pay dividends - more jargon for getting paid to own a company's stock. You'll come to find that not all stocks are created equal - blue-chip and dividend-paying stocks are far more stable investments than that new Silicon Valley startup your uncle told you about at Thanksgiving. Here are some classic blue-chip companies:

• McDonald's

  • Dividend yield: 2.4%

  • 5-yr return: 36.61%

• Amazon

  • 5-yr return: 46.86%

• Apple

  • 5-yr return: 109.49%

• Disney

  • Dividend yield: 1.5%

  • 5-yr return: -47.96%

Roth IRA

It may seem far away, but retirement is a goal we all need to prioritize. Besides, current regulations allow you to pull IRA contributions out penalty-free before age 65. No matter your age, this is an investment vehicle you can take advantage of. If you're under 18, ask your parents about a custodial Roth IRA. These investment instruments vary in portfolio composition - what's inside - but provide two huge advantages:

• Tax-free growth

  • The money you put in a Roth IRA grows tax-free. Over time, this saves you tons of money you would otherwise give to Uncle Sam.

• Tax-free distribution

  • After age 59 1/2, you can pull as much money from your IRA each year as you want to, and certain circumstances may allow you to take qualified distributions even earlier.

Generally speaking, a 3-4% withdrawal rate sets you up well for a 30-year retirement. Since this is one of the most useful and popular investment vehicles you can open right now, let's take a look at some of the math behind a successful retirement:

• Current age: 23

• Retirement age: 65

• Monthly Roth IRA contribution: $250

• Balance at retirement: $1,612,911

  (calculated using expected rate of return of 10%, marginal tax rate of 25%)

That's a lot of money, and $250/month is some people's fast-food budget. This is a great example of how time is on your side as a young person - if you started the same account with the same contribution rate at age 30, you'd barely have half that sum at 65 ($813,073).

What Not to Do

I joked about the hypothetical Silicon Valley startup stock earlier, but it's true - so many people focus on picking the perfect stock or trying to get rich quick. Not only does this rarely work (95% of day traders fail to beat the market over time according to this site), but it's hardly biblical. God teaches us in Proverbs 13:11:

It's not timing the market that builds real wealth, but rather time in the market.

Tying it All Together

Building wealth is simple - not easy, but simple. Historical market data only proves what the Bible has been teaching us for generations - investing small sums for many years beats picking the perfect small-cap stock for your portfolio. It's been said that the best time to start investing was yesterday, and the second-best time is now. Whether you choose one of the options we talked about here or go a different direction isn't really the point - just put your money to work sooner rather than later!

No information presented by Savvy Stewardship contributors is financial advice.