Financial literacy among Generation Z is worryingly low. While it was the generation born into the world of the internet and smartphones, it’s also the generation that is the most exposed to financial fraudsters and scammers. A lack of financial education in schools has left younger people struggling with some of the most fundamental financial skills.
So what is being done to improve financial literacy for Gen Z? Let’s take a look at five schemes looking to make a difference.
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1. Social media campaigns
Citizens Advice has teamed up with TikTok to create a series of short videos. They are helping the younger generation better understand their finances.
As part of Tiktok’s #FactCheckYourFeed campaign, the videos focus on breaking down financial terminology and explaining industry jargon.
As there is more information than ever online, it is important to be aware of misleading information. Many of the younger generation are vulnerable to bank impersonators, social media scammers and phoney online retailers.
Tiktok has also implemented an outright ban on financial advice in order to tackle fraudsters on the platform.
2. Financial advisors
Many think that financial advisors are only for the wealthy. But anyone can benefit from seeking independent financial advice.
Unbiased.co.uk is an online directory that matches you to a financial advisor in your local area. Getting financial advice can help you to set your financial goals and can have a big impact on your financial future.
An initial fact-finding meeting is usually free. After that, advisers tend to charge on a percentage/flat fee or hourly charge basis.
3. UK Strategy for Financial Wellbeing
The Money & Pensions Service launched the UK Strategy for Financial Wellbeing, which aims to ‘transform the country’s financial wellbeing in a decade’.
The idea is to encourage people to engage with financial literacy by breaking it down into five areas:
- Financial education
- Saving
- Credit
- Debt advice
- Retirement
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4. Free advice sites
Figures from the OECD found that those aged 18 to 34 in the UK have the lowest levels of financial literacy. The average financial literacy score for adults in this age bracket is 17% lower than the UK average.
While Generation Z may have missed out on learning about finances and money management at school, there are free advice sites available that address some of the most common issues.
Sites such as Citizens Advice and MoneyHelper cover everyday issues such as budgeting or credit basics. Here at MyWalletHero, we also have guides on everything from how to get out of debt to a complete guide to online share dealing.
5. Money apps
Generation Z are tech-savvy. They like turning to technology to solve their problems. And this is no different when it comes to money problems.
For example, Claro is a financial coaching app that is designed to help younger people understand their finances. It gives users an accurate analysis of their spending, but also offers one-to-one financial coaching.
Alternatively, there are apps designed to help you budget. MoneyDashboard groups all of your accounts together and allows you to see:
- What you are spending your money on
- The payments you still have to make
- How much money you have left for the month
