Healthy credit score or 50,000 TikTok followers? A new poll shows that, given the choice, younger generations would choose good financials over social media clout.
TikTok Fame or Good Credit?
A new survey has asked 1000 young people – 500 GenZers and 500 Millennials – if they would prefer to have an “excellent” credit score, or 50,000 followers on TikTok, and their answers may surprise you.
Credit Sesame Poll
The poll, which was carried out by credit and loan company Credit Sesame, showed that 9 out of 10 people under 40 would choose good personal financials over a substantial degree of social media attention.
Pushing Back Against Stereotypes
These results may fly in the face of stereotypes that paint young people, particularly Gen Z, as social media obsessed.
750 Credit Score
Despite the stereotype, 92% of the Gen Z participants stated their preference for a 750 credit score.
Young People Get a Bad Rap
Founder of Credit Sesame Adrian Nazari, discussed these results in further depth, claiming that the survey responses suggested that younger generations were being mischaracterized as financially irresponsible.
Stereotypes Stand Debunked
“In this survey, we unearthed a remarkable truth – the perceived stereotypes of young people and their approach to their credit and finances stands debunked,” he said.
“They comprehend that a strong credit history is the linchpin of financial wellness.”
More Financial Insights
The survey shared even more insights into the specifics of Gen Z/Millennial finances, including the age at which they began building credit and how much they understand about credit scores and personal finances.
Lack of Understanding Around Credit
42% of participants reported their understanding of credit scores as ‘average to poor,’ 19% failed to identify the correct definition of terms like ‘debt’ and ‘credit,’ and one-third believed that regularly checking your credit rating would have an impact on your score.
No Credit for Some
The average Millennial began building credit at 23 years old, and 10% of Gen Z participants do not have any credit card or indeed a credit score.
An Opportunity for Education
Nazari and researchers at Credit Sesame believe that their survey could provide a much-needed opportunity to better educate young Americans about building and maintaining credit scores, as well as overall financial health and security.
Held Back by Debt
“They lack the education to make more informed choices like the 80% of Gen Z and Millennials who feel their debt is preventing them from owning homes, saving for retirement, and having children,” he said.
Education and Empowerment
“With 42% of respondents admitting they have a poor understanding of how credit scores work, we have a huge opportunity to educate and empower the younger generations,” he said.
Much Needed Optimism
It’s likely that a better understanding of personal finances would help Gen Z and Millennials to feel more positive about their financial future, something that is needed during a time when higher inflation, higher interest rates, and increasing cost of living are taking their toll on younger people.
Money Dysmorphia
According to a different survey, this time by personal finance company Credit Karma, 43% of Millennials and Gen Z describe themselves as having “money dysmorphia.”
Flawed Financial Perceptions
Money dysmorphia is described as a flawed perception of one’s own finances due to fear and anxiety around money matters.
Feelings of Falling Behind
Of those surveyed, 48 percent of Gen Z participants felt they were behind their peers financially, and a surprising 59% of Millennials shared this sentiment.
Self-Aware Youth
Young people are self-aware of these negative feelings, too. 95% of participants reported that their “obsession” with their money, or lack thereof, was having a negative impact on their financial health.
Increasing Money Anxieties
Money anxieties are becoming increasingly common for younger generations, who have just emerged from the social and financial upheaval of the Covid-90 pandemic, and many also recall the impact of the 2008 financial crash.
On the Path to Greater Financial Independence
Nazari feels that while younger generations feel a lot of anxiety around finances, it’s because they care about their financial health.
“They care about building and maintaining a positive credit history,” he affirmed. “So that they can achieve greater financial independence.”
The post From Likes to Savings: Young Adults Focus on Financial Stability, Not Social Fame first appeared on Career Step Up.
Featured Image Credit: Shutterstock / loreanto.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
