How Gen Z is looking for answers in all the wrong places
Gen Z was in a world of financial pain and hoping that social media, an extra job or buy now, pay later cards would be a way out, according to a survey by the Australian Securities and Investments Commission.
Afterpay says its model is different to other BNPL companies.
The survey showed the generation (aged 18 to 26) were far more financially stressed than any other generation with 82 per cent stressed about their finances.
But they were twice as likely as other generations to turn to social media for a solution and wanted to learn things in the shortest possible time.
They have already racked up more personal debt compared with other generations ($8188 compared with $6730) and were more likely to use BNPL.
They also had a low level of savings. About a quarter had less than $1000 saved and 8 per cent had nothing saved.
“Social media is Gen Z’s top source for financial information and they are twice as likely as other generations to rely on social media for information and guidance about managing their finances (56 per cent compared to 23 per cent of non-Gen Z).
“Top sources for Gen Z include YouTube (33 per cent), TikTok (23 per cent), Instagram (19 per cent), Facebook (15 per cent), and X (5 per cent).’’
ASIC said one encouraging finding was that nine in 10 Gen Zs had a strong desire and intent to boost their money skills and financial confidence, despite facing several barriers.
Almost half (49 per cent) of Gen Zs who aren’t financially confident said feeling overwhelmed was the biggest barrier to becoming more confident with money, followed closely by not knowing where to start (42 per cent).
ASIC chief executive Warren Day said Gen Zs were driven to learn more and improve their finances but there was a clear need to engage and help them feel more confident about money.
“We want to show them that it doesn’t take a lot of time to make a start with small steps that will make big differences long term,’’ he said.
“We’re encouraging Gen Zs to use the free tools at moneysmart.gov.au as a starting point to be more in control of their money.
“There’s a real reason why Moneysmart has long been one of the highest rated financial sites in the nation, and we hope this campaign drives more people to benefit from its resources.
“Learning how to plan and save, and deal with their expenses, sets up young Aussies for their future. We hope this campaign, through its practical tips, will help people feel more in control of their financial lives.”
