Social Media and Financial Literacy: Where Millennials and Gen Z are learning about money
Millennials and Gen Z are using alternative social media platforms to learn about financial literacy.
Millennials and the Gen Z population:
They’re smart.
They’re savvy.
They aren’t loyal to any brand.
They’re inundated with information.
They’re about to get rich.
And they’re using social media to learn about their finances and how to wisely spend their money. As a financial institution, you need to make sure you’re on those platforms to reach them most effectively.
According to HerMoney.com, by 2030, millennials are set to inherit trillions of dollars from their relatives and become the richest generation in history.
You shouldn’t underestimate them now, though. They already have buying power and are eager to harness it.
Each year, the social media platform Pinterest launches a Pinterest Predicts report, which details what the platform believes will be popular in the year to come. In 2022, the platform predicted financial literacy and financial independence will trend for their users, who are made up primarily of millennials.
According to Pinterest, the following search terms about financial literacy skyrocketed at the end of 2021:
- Investment tips: +195%
- Financial Planning bullet journal: + 90%
- Financial education: +55%
- Investment property for beginners: +45%
- Passive income tips: +35%
We were shocked, too. What we’ve learned, though, is millennials and Gen Z are using Pinterest not as a social media platform, but as a search engine. Your financial brand should be mindful of that.
Another platform you need to consider is TikTok, a space that might not seem like it would provide a return on your time investment. However, it has 80 million active users in the United States, and 60 percent are between the ages of 16 and 24. According to a survey by Magnify Money, nearly a quarter of investors ages 18 to 40, and 41 percent of those between 18 and 24, have sought financial advice on the platform. Creators are taking complex financial issues and condensing advice into minute-long videos. TikTok is a useful platform and one that brands are flocking to, to reach young investors.
Pinterest and TikTok are two examples of alternative platforms that young people are going to for advice. Meanwhile, Facebook, Instagram, and LinkedIn continue to be powerhouses for reaching audiences interested in financial literacy. If you’re on social media to target your customer base, you’re being smart. If you’re studying each platform, using it differently, experimenting and learning about how different audiences are using them, you’re being smart and savvy.
For financial institutions, an investment in reaching Millennial and Gen Z populations now will have payoffs for the future of your business. If you need help getting started or guidance in developing a social media plan for platforms you might not know as much about, Chartwell can help. Connect with us today to learn more about digital strategies that think outside the box – and think ahead.
