Many Gen Z’ers surveyed say innovative tools are the way to go when it comes to learning about credit (45%) and almost half (48%) would prefer to use tech-driven tools versus textbooks to learn more. As more young adults begin to navigate credit, they can now benefit from innovative tools like Experian Boost™, a free online resource that allows consumers to add positive payment history from utility and cell phone payments to their Experian credit reports, which can possibly improve their credit scores instantly. This tool is especially beneficial to young adults who often have a thin credit file due to short credit histories.
Making sure financial education sparks young adults’ interest is an important step in educating this audience; only 38% of those surveyed find personal finance topics interesting and 40% feel neutral about it. Survey respondents also say they are currently learning about finances mostly through their friends (28%), YouTube (27%) and some form of social media (24%).
“It’s encouraging to see that high school students will have access to formal personal finance education,” said Rod Griffin, director of public education for Experian. “Understanding the basics such as how credit scores work and budgeting will set up young adults for financial success before they learn the hard way by falling into debt or misusing credit. It’s important for them to learn early, so they feel confident when making decisions about students loans, taking on a credit card, buying a car and renting an apartment – which are all financial steps that often take place after graduating from high school.”
Among those surveyed who have taken a finance class, some topics of interest include how to file taxes (33%), pay for college (26%) and plan for different life stages (25%). Respondents who haven’t taken a finance class want to know how to save money (43%), manage expenses (38%) and file taxes (36%).
Young Adults are Anxious about Money
Unfortunately, money and finances cause young adults a lot of stress. The survey also found that:
• More than half (51%) of respondents are afraid money issues will stop them from doing the things they want to do in life
• 43% are afraid they will not make enough money to be happy
• 37% feel pressured to compete with peers when it comes to money and having nice things
• 36% feel they will never be financially secure no matter how hard they try
• More than a third (35%) say they have poor spending habits
• 30% believe the system is set up to keep them from getting ahead financially
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