TikTok Teaches Kiwi Youth More About Money Than School
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,” Joe concludes.
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.
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- Financial Habits & Attitudes
- KiwiSaver Uses & Knowledge
- Financial Literacy Questions
Financial Habits & Attitudes
Where do you get your information on money and personal finance from?
|Other family members, including your partner||30.90%|
|Mainstream media including online news, radio, and tv||27.50%|
|Social media including YouTube and TikTok||26.50%|
|Online resources including Podcasts||23.50%|
|Books including e-books||11.80%|
|Other (Please specify)||2.90%|
How frequently do you seek information on money and personal finance?
|All the time||9.30%|
|On a regular basis / very often||27.50%|
|Not very often||39.70%|
|Only when I need to||20.60%|
Why do you seek information on money and personal finance?
|To keep myself informed||55.10%|
|When I need financial advice to open an account, make a loan or investment etc||41.40%|
|To help with budgeting or saving||71.70%|
|When I hear others talk about finance and related topics||25.30%|
|Other (Please specify)||0.50%|
Would you like to learn more about money and finances?
|No, it’s too complex (or boring) and I’m not interested||5.40%|
|No, I feel like I know enough about money for my current life stage||19.60%|
|No, someone else looks after my money for me||2.50%|
|Yes, but I don’t know where to start||39.70%|
|Yes, and I am actively talking to people and seeking advice||26.50%|
|I’m not sure||6.40%|
To what extent do you agree or disagree with the following statements?
|If I need help managing my money, I know where to go to get it||7.4%||55.4%||22.1%||13.2%||2.0%|
|I think New Zealand schools should teach more about personal finance and money management||45.6%||44.6%||8.3%||1.5%||0|
|I think the average Kiwi has to rely on their family money to buy their first home||25.0%||38.7%||27.9%||6.9%||1.5%|
|Managing money well is something you can learn||30.4%||60.8%||8.3%||0.5%||0|
|Self-control is more important than knowledge when it comes to managing money||15.2%||48.0%||29.9%||6.9%||0|
|I feel confident talking about money||10.8%||42.2%||28.9%||16.7%||1.5%|
|People should have an emergency saving fund||35.3%||53.9%||8.8%||2.0%||0|
|I can confidently make a budget to track what I spend||18.6%||43.1%||21.6%||14.2%||2.5%|
|I don’t think about money much, I just take it as it comes||6.9%||24.5%||28.4%||29.9%||10.3%|
|Better to live in the moment than worry about tomorrow||4.4%||19.1%||27.9%||38.7%||9.8%|
|Things always work out in the end when it comes to money||5.9%||19.6%||35.3%||34.8%||4.4%|
|I feel more confident navigating social media than I do filing my tax return||34.8%||35.8%||20.1%||5.9%||3.4%|
Which of the following actions, if any, have you taken in the last 12 months?
|Checked your current account balance||88.20%|
|Checked your bank statement||62.30%|
|Put money into a savings account||81.90%|
|Withdrew money from a savings account||61.30%|
|Put money into a KiwiSaver account||53.40%|
|Spoken to a friend or family member about managing your money||53.40%|
|Made a budget to manage your spending||44.60%|
|Used an app to help you manage your money||17.20%|
|Searched online for information about managing your money||22.10%|
|Used an overdraft||6.90%|
|Used investment apps like hatch / Sharesies||20.10%|
|Purchased shares through brokers||3.40%|
|Invested in cryptocurrency.||5.40%|
|Used a credit card to pay for essentials||16.20%|
|Sought advice from a financial adviser||2.90%|
|None of the above||2.00%|
Which of the following topics, if any, do you think New Zealand schools should teach more about?
|Budgeting and planning your money||90.20%|
|Making investment choices and understanding risk||52.50%|
|Using credit such as credit cards and loans and Buy Now Pay Later||44.10%|
|Saving for a house deposit||63.70%|
|Saving for retirement||42.20%|
|How KiwiSaver works||66.20%|
|The best KiwiSaver fund for your lifestyle||42.20%|
|Other (Please specify)||0.50%|
|None of these/Not sure||3.40%|
KiwiSaver Uses & Knowledge
Do you plan to purchase a house in the future?
|Yes, I am currently looking to purchase||7.40%|
|Yes, in the next 10 years||46.60%|
|Maybe, in 10 years or more||26.00%|
|No, I don’t think I’ll be able to purchase a house for myself||6.40%|
|I already own a house||3.40%|
How do you think you will pay for a house deposit?
|With help from family||41.70%|
How do you plan to fund your retirement in the future?
|Government money (superannuation/pension)||38.20%|
|Sell my house or other significant assets||9.80%|
Do you have KiwiSaver?
Have you ever switched KiwiSaver funds or providers?
Why did you change KiwiSaver funds or providers?
|I changed my main bank||26.70%|
|My new provider provides better returns||40.00%|
|My new provider charges less in fees||35.60%|
|My new provider aligns better with my ethics||13.30%|
How much money do you think you need to save for your retirement?
|Less than $50,000||4.90%|
|Between $50,000 - $99,999||9.80%|
|Between $100,000 - $249,000||9.30%|
|$250,000 - $499,000||10.80%|
|$500,000 - $749,000||12.70%|
|$750,000 - $999,999||7.80%|
|$1 million - $2 million||15.70%|
|More than $2 million||3.90%|
Financial Literacy Questions
Which of these statements do you think are true or false about KiwiSaver?
|All employed Kiwis must contribute to KiwiSaver||36.8%||63.2%|
|When you first join KiwiSaver, you are put in a default fund with your everyday bank||59.3%||40.7%|
|You can change your KiwiSaver provider whenever you want||91.7%||8.3%|
|I think KiwiSaver will be able to support me in retirement||63.7%||36.3%|
|The Government contributes to your KiwiSaver every year||83.3%||16.7%|
|Your employer contributes to your KiwiSaver alongside your own contributions||94.1%||5.9%|
|You can take a break from regular KiwiSaver contributions||77.0%||23.0%|
|You can make voluntary payments to KiwiSaver||90.7%||9.3%|
|KiwiSaver balances always go up, never down||19.6%||80.4%|
What is most important to you when considering making an investment or deciding on a KiwiSaver fund provider? Order the below from most to least important, where 1 is the most important and 3 is the least important:
What is your understanding of how compound interest works?
|Compound interest is calculated only on the principal amount or the principal amount that remains over time||11.80%|
|Compound interest is calculated on the total amount of principal and interest accumulated over time||44.60%|
Order the below types of KiwiSaver funds in terms of risk level, starting with lowest risk Where 1 is the lowest risk and 4 is the highest risk:
When money is invested across multiple assets such as stocks, managed funds and bonds, compared to just one type of asset type, do you think the risk portfolio…
|Remains the same||20.10%|
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