The preference of Gen Z: Social media clout or financial stability?
In today’s digital age, social media platforms like TikTok have taken the world by storm, capturing the attention of younger generations. However, a recent survey conducted by OnePoll on behalf of Credit Sesame reveals that when it comes to priorities, Gen Z is more concerned about their financial stability than gaining social media clout.
The survey, which included 500 Gen Z and 500 millennials, found that a staggering nine out of 10 millennials would choose to have an “excellent” credit score rather than 50,000 followers on TikTok. This preference extends to Gen Z as well, with 92% of respondents preferring a credit score of 750 or higher over thousands of social media followers.
Despite their affinity for social media, the survey also uncovered that more than half of the respondents have only ever interacted with their credit card or credit score on their smartphones. This highlights the growing importance of mobile banking and the need for financial institutions to adapt to the changing preferences of younger generations.
Interestingly, the survey revealed that Gen Z tends to start building credit at a younger age compared to millennials. On average, Gen Zers opened their first bank account at 19 and started paying rent and got their first credit card at 20. However, it is worth noting that one in 10 Gen Z respondents do not have a credit card or credit score, suggesting a potential gap in financial education.
Speaking of financial education, the survey illustrated some knowledge gaps among Americans when it comes to credit scores. Approximately 42% of respondents rated their understanding of how credit scores work as average to poor. Furthermore, one-third of respondents still believe the age-old myth that checking your credit score will negatively impact it. These findings highlight the need for increased financial literacy among younger generations.
Despite these knowledge gaps, the survey also found that a majority of respondents feel in control of their credit scores. This sense of control may be attributed to the fact that 68% of respondents pay their bills through mobile banking, allowing them to easily monitor and manage their finances.
The survey also shed light on Americans’ financial practices and attitudes towards spending. Respondents tended to be more risk-averse than riskier with their spending, especially in light of the current economy. Additionally, credit card debt was found to impact larger financial goals such as buying a house, taking a dream vacation, and saving for retirement.
Adrian Nazari, Founder and CEO of Credit Sesame, emphasized the importance of good credit for financial wellness. He stated, “While young people are often misperceived financially, they overwhelmingly understand that having good credit is the key to financial wellness.” Nazari also highlighted the need for financial education and empowerment among younger generations.
In conclusion, the survey findings indicate that while social media may have a significant presence in the lives of Gen Z and millennials, they prioritize their financial stability over gaining social media clout. The survey highlights the importance of mobile banking, the need for increased financial education, and the impact of credit scores on larger financial goals. As younger generations navigate their financial journeys, it is crucial for them to build and maintain positive credit histories to achieve greater financial independence.
