Young Kiwis are getting more information on personal finance from social media sites such as TikTok than they do from school.
New independent research from BetterSaver surveyed 16-24-year-olds to better understand their knowledge when it comes to financial literacy.
A whopping 90% of youth think that school should teach them more about personal finance and money management. Nearly 40% also want to learn more about money and finances, but don’t know where to start.
Joe Taylor, BetterSaver founder and CEO, says New Zealand schools need to do better.
“We cannot leave our young adults in the dark to figure out what financial advice is good or bad. We trust schools to set our children up for success, but our research findings show that’s not the case when it comes to financial matters.
“Financial education should be easy, and the foundations should be laid at school. The fact that we’ve got young people relying on TikTok, Instagram and other social media ahead of the schooling system shows we’ve got some serious leg work to do.”
The research also uncovers topics young Kiwis want to learn more about at school, with 90% wanting to learn more about budgeting and planning your money. Other topics they wish were covered includes making investment choices and understanding risk (52.5%), and how KiwiSaver works (66.2%).
Shockingly, when asked how to define compound interest, more than half young Kiwis couldn’t define it accurately. Three in five young Kiwis also don’t understand that diversification decreases investment risks, which has a huge impact on people’s ability to decide what KiwiSaver fund they want to be in.
“We’ve got to set young Kiwis up for financial success. It doesn’t happen by accident. Financial literacy is something we can teach, and it’s something we can simply step people through the basics.
“Our goal is to educate young adults about KiwiSaver by providing sound financial advice and empower them to make smart financial decisions beyond KiwiSaver once they understand the possibilities,” Taylor says.
BetterSaver’s advice platform is designed to put Kiwis in the fund that best aligns with their ethics, risk portfolio, and life stage. It’s free to go through BetterSaver’s Fund Finder advice process, and the digital platform makes it easy for Kiwis to identify which best fund meets their needs, and then make the switch. Learn more at https://bettersaver.co.nz/.
About the research
Pure Profile conducted a representative survey of 204 young New Zealanders between the ages of 16-24. The survey was conducted from 30 July – 3 August 2021 to better understand how young adults think about personal finance and their financial literacy.