One in five (20%) young Brits aged 16-24 now rely on social media to seek financial advice, according to research by debt management company Lowell.
The pandemic has placed a great deal of the population under increased financial strain, urging many to refocus their budget and tighten their grasp on the purse strings. However, after commissioning a Censuswide survey of more than 1,000 UK residents, Lowell unveiled a lack of confidence among young people when it came to personal finance management.
According to the research, Brits aged 16-24 are more likely to turn to platforms like TikTok and Instagram to access finance-related information or guidance than they are a bank (19% vs 17%).
“I sometimes watch TikToks about financial advice but it’s more about money-saving tips and that kind of thing…I do think financial education is really important – I’d love to have confidence to do more with my money” – Hannah Cribb, 22, Liverpool
There is a clear gap in financial understanding among young people today, with 44% claiming they are not confident with managing their finances, and one in 10 (11%) stating they have no confidence at all in their grasp of personal finance. Additionally, only a fifth (20%) knew what an overdraft was, and just 5% knew the meaning of the term ‘arrears’.
A majority (84%) of survey participants across all demographics felt that finance management should be added to the national school curriculum to help prevent monetary issues arising in the future.
Hannah Cribb, a 22-year-old from Liverpool, agreed that she lacks confidence when it comes to her financial situation, commenting: “I have a bank account and a student overdraft, and I know my wages get paid into my bank account, but that’s about it. I don’t have any loans or credit cards, and I wouldn’t even know where to start looking if I wanted one. I would feel stupid going to my bank as I would have no idea what to ask for!
“I sometimes watch TikToks about financial advice but it’s more about money-saving tips and that kind of thing. If I needed a loan or anything I’d probably just ask my Mum where she would go and do the same.
“I do think financial education is really important – I’d love to have confidence to do more with my money.”