Data Snacks, Member Exclusive

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.
close

Email a Friend

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.

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. 

0 comments on “Data Snack: Almost half of Gen Z use social media as their primary source of financial advice”

10-Q, Member Exclusive

Behind Citizens Bank’s evolving strategy in a crowded BNPL market

  • Citizens Pay's Christine Roberts shares insights on how Citizens Pay has evolved since its inception and if it has an edge over fintech BNPL lenders.
  • In other news, Arm and Instacart IPOs could be meaningful for Goldman Sachs to open new doors of revenue and IPO fees for the Wall Street firm.
Sara Khairi | September 25, 2023
10-Q, Member Exclusive

Chasing ambitions: SoFi elevates its game by participating in underwriting the Instacart IPO

  • Underwriting part of the Instacart IPO can be a big shot for SoFi, which went public in 2021 and is best known for student loan refinancing.
  • Also, Wall Street banks added modest gains to the IPO Index last week.
Sara Khairi | September 18, 2023
10-Q, Member Exclusive

Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

  • Dime makes a move into the healthcare sector to offer financing solutions and support capital-intensive projects.
  • The CFPB is keeping tabs on Apple’s policy of limiting access to the NFC chip technology that makes Apple Pay the only mobile payment service that utilizes the ‘tap and go’ technology embedded in iOS devices limiting other companies from developing their own tap-to-pay apps for Apple devices.
Sara Khairi | September 11, 2023
10-Q, Member Exclusive

Better.com’s shiny IPO debut: Can the mortgage lender pave its way to become a Wall Street darling?

  • Can Better.com gain Wall Street's respect?
  • Federal Reserve Chair Jerome Powell on Friday warned that additional interest rate increases could be yet to come, as inflation is still above where policymakers feel comfortable.
Sara Khairi | August 28, 2023
10-Q, Member Exclusive

‘We still need to earn the trust of millions of Americans who are experiencing digital banking for the first time’: Dave’s Jason Wilk

  • Jason Wilk, CEO and founder of Dave, talks about second quarter results, challenges for neobanks at large, and what's in store for the firm in the months ahead.
  • Marqeta shares popped 8% last week as the firm extended its alliance with its largest customer, Block, through 2027 for transaction services for Cash App and Afterpay.
Sara Khairi | August 21, 2023
More Articles