Data Snack: Almost half of Gen Z use social media as their primary source of financial advice
- The next generation of Suze Ormans is popping up on TikTok, teaching young Americans how to manage their personal finances.
- And Gen Z is certainly listening, which tells us why they do banking differently than their parents.
The next generation of Suze Ormans is popping up on TikTok, teaching young Americans how to manage their personal finances. And Gen Z is certainly listening, which tells us why they do banking differently than their parents.
Gen Zers allocate a greater percentage of their investment portfolio to crypto, 97% use mobile banking apps, and many prefer to access customer services online. MoneyLion’s Personal Financial Wellness Report surveyed consumer habits, consumption of financial content, and product usage to reveal key findings on Gen Z. Here are the highlights:
Almost half (49%) of Gen Zers mentioned social media as their go-to place for financial education. That means this generation consumes less of Bloomberg and is getting ‘lit’ (financially literate) on TikTok. Additionally, the survey found that three in four Gen Z and Millennials cite a digital source among their most important sources of financial information.
The rise and cracks of FinTok
Part of this shift to TikTok as the preferred medium is the format in which the financial information is delivered. It is usually short and sweet, like how this Humphrey Yang video explains shorting a stock in 45 seconds.
However, despite a burgeoning host of FinTok influencers, the survey found that most young Americans were in the dark about basic financial products. Only 30% of Gen Zers and 48% of Millennials were familiar with financial products such as checking accounts and mortgages. Only 30% of Gen Zers and 36% of Millennials knew the difference between basic concepts such as credit unions and stock brokerages. And only a quarter of Gen Zers and 28% of Millennials were well-versed in financial terms such as capital gains and compounding interest.
Fintechs filling in the gap
The survey found that less than 25% of Americans feel well-served in accessing financial services. However, more than half (53%) of respondents agreed with the statement, “I trust my bank has my best interest in mind.”
“Our survey shows that there is a real need for financial education that is delivered via digital channels and in the format that people consume media, particularly among younger generations,” said Cynthia Kleinbaum, Chief Customer Officer at MoneyLion, in a press release.
MoneyLion launched MoneyLion University (MLU) as part of its financial literacy initiative to serve Americans. It partnered with NFL player and University of Pennsylvania (UPenn) lecturer Brandon Copeland to teach money tips, advice, and lifestyle hacks.
Copeland presents a segment called #NoStupidQuestions, where he answers real questions from consumers, such as, “How many credit cards should I have?”
While trading meme tokens and stocks may be fun, Gen Z will need to learn about checking accounts and mortgages to avoid repeating their parents' mistakes. And it seems fintechs like MoneyLion have their work cut out for them.