A Survey by Spruce Reveals Social Media's Growing Influence on Gen Z's Financial Decisions, Highlighting a Generational Divide in Learning about Money

Core Insights - April is designated as National Financial Literacy Month, emphasizing the importance of financial education and healthy financial habits in a technology-driven landscape [1][2] - A survey by Spruce reveals a generational shift in financial education, with younger consumers, especially Gen Z, increasingly relying on social media for financial tips, while older generations prefer traditional sources [2][4] Group 1: Financial Education Trends - Nearly 70% of Gen Z are influenced by financial trends on social media, indicating a willingness to improve financial knowledge but highlighting the challenge of discerning valid information [3][9] - Traditional sources of financial education, such as family and banking institutions, remain prevalent, with 31% of respondents citing family and 29% citing banks as primary sources [8] - Only 13% of respondents reported learning about personal finance in school, indicating a significant gap in formal financial education [8] Group 2: Impact of Social Media - 16% of all respondents look to social media for financial education, with platforms like TikTok (39%) and Instagram (34%) being the most popular among Gen Z [6][8] - Viral financial trends, such as soft saving and cash stuffing, have influenced 37% of respondents to try finance trends discovered online [5][9] - The influence of social media on financial behavior varies by generation, with 68% of Gen Z, 51% of Millennials, and 27% of Gen X reporting being inspired by social media finance trends [9] Group 3: Digital Tools and Financial Management - Online financial tools and apps are essential for money management, particularly among Millennials and Gen Z, with 38% using them for credit score monitoring and 29% for budgeting [10][11] - 66% of Gen Z express low confidence in making major financial decisions without digital assistance, underscoring the growing reliance on technology for financial management [11] - The survey indicates that 70% of American households are striving for financial health, emphasizing the need for accessible financial resources [12]