May 31 2023 | Giorgia Rose
Monthly global money spotlights [May]
In-house nudge writer Giorgia Rose shares what you missed from our live news feeds this past month. Here is her roundup of global financial trends from May 2023.
3 min read
As Millennials and Gen Z take their financial situations into their own hands, “Finpowerment” is on the rise.
TikTok has grabbed hold of our youth, with 18% of Gen Z looking to the app for financial advice from money ‘finfluencers’. More widely, 45% of people have taken to ‘modern methods’ like YouTube for their financial education needs. Whilst it’s great to see so many of us hungry for knowledge, can we trust these unregulated social platforms?
With little time for nuanced, unbiased discussions within 15 second videos - has financial education become a content lottery?
Let’s dial back to the roots of the problem; globally, only 13% of people had formal financial education in school - the rest are left to figure out their own financial paths. Therefore, many young adults enter the working world without basic financial knowledge, often turning to social media…
According to a survey by GOBankingRates 39% of 18-24 year-olds cited social media outlets as their primary source of financial knowledge. Our research, disrupting money habits, revealed that 23% of people look to YouTube alone, for advice and education. Meanwhile, Pinterest has reported a surge in searches for “financial education” and “investment tips” among millennials.
However, many vloggers and influencers are unqualified to give advice - their focus for producing content is watchability, not reliability. And research shows that around 24% of workers feel they’ve made bad decisions about debt over the course of the pandemic. These are decisions that could have been better with access to impartial financial education.
Sound financial choices are a by-product of financial literacy. And, like money itself, financial knowledge is easier to multiply once you have some. A little education creates an appetite for more, dispelling preconceived ideas that the topic is inaccessible. And as learners continue to grow in knowledge, they can stay ahead of the changing economic landscape. This, combined with strong networks of support, ensures they’re able to successfully reposition as circumstances shift.
As many companies navigate the challenges of a competitive business landscape and the Great Resignation - taking steps to ensure that employees are thriving financially can prove to be a critical change-maker.
Your people’s financial literacy is essential for market survival. Companies failing to meet their employee’s needs are losing their brightest talent and falling behind. Meantime, those organizations taking a holistic approach to finpowerment are seeing exponential growth, alongside a more motivated, loyal workforce.
The bottom line is: if you want your people to look after you, you’ll need to take looking after them, and their money, seriously.
Wellbeing. Success. Achievement. Health. Happiness.
Impartial financial education services empower your workforce to make informed decisions - particularly around products like health and life insurance - and to ace life goals, like starting a family, taking that dream vacation, going back to school part-time, or even just being able to sleep at night without the anxiety that comes with money worries.
Think all of this sounds hard to realize in your organization?
What if we told you that finpowering your people could actually be easy?
It’s clear that engaging app and tech-based platforms - like nudge - are the medium by which millennials and Gen Z operate. As our innovation in interactive technology continues to develop in 2022, we’re making even more happen: more accessible interactive tools, more on-demand financial education courses, and more product-free solutions.
We’re living in a climate where it’s no longer enough to make sure your people are bringing in competitive paychecks. They need to know what to do with those paychecks. It may be up to you to put forward the case and become an ambassador for democratizing financial education services in your organization. Because if recent history has taught us anything, it’s that things can change. And boy, can they change fast.
We need to give our people peace of mind. How? With financial education services that are trusted, impartial and entertaining. And you can be a part of this global paradigm shift.
Finpower your people and change their lives.