34% of Gen Z learn about personal finance from TikTok and YouTube, survey finds

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Gen Z grew up in an era of low commissions and high technology, which greatly influenced the way they invest and learn about money in general. This generation who are between the ages of 6 and 24 right now are trying to use what they grew up with — things like social media — to their advantage rather than just for fun. Where previous generations could rely on family, financial advisors, or other sources to learn more about money management, Gen Z seems to be modernizing personal finance education in a way that works for them.

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To learn more about Gen Z’s approach to personal finance, investing, and other money issues, GOBankingRates commissioned a six-question survey of 1,000 Americans between the ages of 18 and 24. Here are some of the most interesting findings from this survey.

Gen Z learns personal finance from TikTok and YouTube

Perhaps the most notable finding of the survey is that the younger generation is getting much of their financial information from a source that didn’t even exist two decades ago. A whopping 38.8% of Gen Zers responded that they had heard about personal finance from TikTok, YouTube or other social media, like Twitter or Instagram – 34.3% responded specifically to TikTok and YouTube. Another 7.20% said they get their information from personal research and/or online forums like Reddit. Together, that’s far more than the 22.70% who said they learned from their parents or family.

A lot can be deduced from this statistic. For starters, it reflects how much social media and online news dominate the lives of Gen Zers. However, it also raises questions about the quality of information Gen Zers get about personal finances. While there is certainly valuable information to be found online, there aren’t many restrictions on who can post online and what they can say. If Gen Zers do not verify the information they receive, they could be susceptible to financial misinformation. It also means they might miss some of the fundamentals about personal finance along the way, as only 17.60% said they learned their financial information in a high school or college class.

A Surprisingly High Percentage of Gen Z Invests in Real Estate

For the purposes of this survey, only people between the ages of 18 and 24 were included. As a rule, people in this age group are finishing their studies or taking up their first job. Either way, Gen Z hasn’t had much time to build their savings and investment portfolios yet. Yet a surprising 19% of respondents indicated that they had invested in real estate, which traditionally requires higher levels of investment and/or a good credit history. This was the second most popular investment category among survey respondents, just behind the 22.40% indicating they were invested in stocks.

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 response to this question. While many Gen Zers may not yet be earning a lot of money to invest, they would benefit from starting saving and investing as early as possible to take advantage of the power of compound interest.

Debt levels are generally under control for Gen Z

While it may be more encouraging to see a higher level of investment from survey respondents, the good news is that most Gen Z survey respondents indicated that they had control over their debt. More than 34% of survey participants had no debt, including student debt, and nearly two-thirds had less than $5,000. However, 9% of respondents had at least $50,000 in debt.

Many Gen Z still rely on their parents

Based on the survey results, it appears that Gen Zers aren’t quite ready to completely fend for themselves in times of hardship. During the pandemic, about two-thirds of respondents indicated that they lived with their parents. Although 13.90% indicated that they had since moved on their own, 49.30% indicated that they had always lived with their parents or had returned home during the pandemic and were still there.

After: 4 Gen Z Industries Could Save – and 4 They Could Destroy

There are notable differences between Gen Z men and women when it comes to personal finances

When it comes to money and finances, there were relatively large differences between men and women who responded to the Gen Z survey. For example, 26.13% of women reported learning about personal finances of their parents or family compared to only 16.53% of men. Men overwhelmingly preferred YouTube as a source of financial information, at 27.17% compared to 11.98% for women.

Women were also more likely to have zero debt, at 36.08% compared to 31.09% of men, but they were also less likely to be invested: only 25.77% of men indicated that they had no debt. were not invested against 38.10% of women. About 52% of men indicated that they were invested in cryptocurrency and/or stocks compared to only 32.50% of women.

More from GOBankingRates

Methodology: GOBankingRates surveyed 1,000 Americans aged 18-24 across the country from August 19-20, 2021, asking six different questions: (1) Where did you learn about personal finance? ; (2) What is the overall amount of debt you currently have? (including student loan debt); (3) Do you invest your money? If so, what are you investing in? Select everything related to it:; (4) If you had to choose one, what do you prioritize/enjoy the most in a potential job? ; (5) Did you move in with 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 survey.

This article originally appeared on GOBankingRates.com: 34% of Gen Z learn personal finance from TikTok and YouTube, survey finds

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