Generation Z has grown up in an age of low commissions and high technology, which has had a huge impact on how they invest and learn about money in general. This generation, who is between 6-24 years old right now, is trying to use what they grew up with — things like social media — to their advantage instead of just for fun. While previous generations may have relied on family, financial advisors, or other sources to learn about money management, it seems that Gen Z is modernizing personal finance education in a way that works for them.
Read: 51 of the Biggest Influential Money on TikTok and YouTube
Check out: The 10 best stocks for the Gen Z investor
To find out about Gen Z’s approach to personal finance, investment, and more money issues, GOBankingRates commissioned a six-question survey of 1,000 Americans ages 18 to 24. Here are some of the most interesting findings from that survey.
Gen Z learns personal economics from TikTok and YouTube
Perhaps the most remarkable result of the study is that the younger generation gets much of its financial information from a source that did not even exist two decades ago. As many as 38.8% of Gen Zers answered that they learned about personal finance from TikTok, YouTube or other social media, e.g. Twitter or Instagram – 34.3% responded specifically to TikTok and YouTube. A further 7.20% answered that they get their information from personal research and / or online forums like Reddit. Together, this is far more than the 22.70% who reported having learned from parents or family.
Much can be deduced from these statistics. To begin with, it reflects how much social media and online information dominate Gen Zer’s life. However, it also raises questions about the quality of information that Gen Zers receives about personal finance. While there is certainly some valuable information to be found online, there are not many restrictions on who can post online and what they can say. If Gen Zers does not control the information they receive, they may be susceptible to financial misinformation. It also means that they may be missing some of the basic principles of personal finance along the way, as only 17.60% indicated that they learned their financial information from a high school or college.
Find Out: 5 Economic Steps Gen Z Should Take Now
See: Surprising Ways Gen Z and Millennials Are Financially Separated Worlds
A surprisingly high percentage of General Zers invests in real estate
For the purposes of this study, only those aged 18-24 years were included. Typically, people in that age group are either finishing their education or doing their first job. In either case, Gen Zers has not had much time yet to build their savings and investment portfolios. Nevertheless, a surprising 19% of respondents stated that they had invested in real estate, which traditionally requires a higher level of investment and / or a good credit history. This was the second most popular investment category among the respondents in the survey, just behind the 22.40% who indicated that they were invested in equities.
Although a large number of Gen Zers in the survey indicated that they were invested, 33.70% indicated that they were not invested in anything. This represented the largest individual answer to this question. While many Gen Zers may not yet make a lot of money investing, it would benefit them to start saving and investing as young as possible to reap the benefits of compound interest.
More: Crypto and 5 other groundbreaking investment trends for Gen Z.
Find: How will teens and Gen Z invest their money? Think low risk, ESG and Roboadvisors
Debt levels are generally under control for Gen Z
While it may be more encouraging to see a higher level of investment from respondents in the survey, the good news is that most of the respondents from the Generation Z survey indicated that they had control over their debt. More than 34% of survey participants had no debt at all, including student debt, and nearly two-thirds had less than $ 5,000. However, 9% of respondents had at least $ 50,000 in debt.
Find out more: Life events that millennials and generations choose to go into debt for
Many generations still trust their parents
From the survey results, it appears that Gen Zers is not quite ready to stand on its own in difficulties. During the pandemic, about two-thirds of respondents indicated that they lived with their parents. Although 13.90% stated that they have since moved alone, as many as 49.30% have stated that they have either always lived with their parents or moved home during the pandemic and are still there.
Read: Gen Z feels financially unprepared for adulthood – but has hope for the future
More: 4 Industries Gen Z can save – and 4 it can ruin
There are some notable differences between male and female generations when it comes to personal finances
When it comes to money and funding, there were some relatively significant differences between male and female respondents to the Gen Z survey. For example, 26.13% of women stated that they learned personal finance from their parents or family against only 16.53% of men. Men greatly preferred YouTube as a source of financial information, 27.17% versus 11.98% for women.
Women were also more likely to have zero debt, 36.08% against 31.09% of men, but they were also less likely to be invested: Only 25.77% of men indicated that they were not invested against 38 , 10% of women. About 52% of the men stated that they were invested in cryptocurrency and / or stocks against only 32.50% of the women.
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Last updated: September 15, 2021
Method: GOBankingRates surveyed 1,000 Americans ages 18 to 24 from across the country from August 19 to August 20, 2021, and asked six different questions: (1) Where did you learn about personal finance ?; (2) How much total debt do you currently have? (Including student loan debt); (3) Are you investing your money? If so, what are you investing in? Choose the one that fits :; (4) If you were to choose one, what do you prioritize / value most in a potential job ?; (5) Did you move back to your family during the coronavirus pandemic ?; and (6) What do you spend most of your money on, other than rent? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
This article was originally published on GOBankingRates.com: 34% of Gen Z teaches personal finance from TikTok and YouTube, survey finds