You can’t believe everything you read on the internet or scroll past on TikTok – but according to a recent Compare the Market survey that’s where 29% of adult Australians are learning about finance.
Gen Z were revealed as the most app happy generation, with 22% using the internet and 28% using social media platforms like TikTok, YouTube, Facebook and Instagram to learn about money.
The June survey of 1006 adult Australians revealed that the majority of Australians (32%) learnt their most useful financial knowledge from their parents or family.
Meanwhile, 11% sought out a professional financial advisor, accountant or banker for their financial knowledge.
This was followed by less than 10% who found their most useful financial knowledge at work, books, school and reddit.
| Where have you learned the most useful financial knowledge? | Gen Z | Millennials | Gen X | Baby Boomers |
| Parents/Family | 26% | 32% | 34% | 33% |
| The Internet | 22% | 26% | 26% | 14% |
| A professional (financial advisor, accountant, banker) | 3% | 7% | 9% | 21% |
| Social media (TikTok, YouTube, Facebook, Instagram, etc) | 28% | 10% | 5% | 0% |
| Other (please specify) | 1% | 6% | 7% | 12% |
| My work | 5% | 5% | 8% | 9% |
| Books | 6% | 8% | 5% | 7% |
| School | 7% | 5% | 7% | 4% |
| 2% | 2% | 0% | 0% |
Compare the market survey of 1006 adult Australians, conducted June 2024
In 2022, the Australian Securities & Investment Commission (ASIC) cracked down on social media influencers, warning they could face imprisonment and $1 million fines it they don’t obtain a financial services licence or quit promoting stocks and investment funds online.
Since then, the corporate watchdog has issued several warnings about unlicensed financial advice.
Compare the Market’s Economic Director, David Koch, urged Aussies to err on the side of caution.
“Don’t take everything at face value, make sure you fact check any advice you see online,” Mr Koch said.
“To avoid falling into a money trap, do a bit of desktop research to ensure what you’re seeing is credible.
“For every helpful tip there could be hundreds of bad ones leading you down the garden path.
“We know that far too many Australians have missed out on a financial education at school and for them the internet is an easy way to access information.
“Unfortunately, many of us don’t know how to distinguish between bogus and brilliant advice, especially on a topic we may be unfamiliar with and there is plenty of unreliable information available that can easily lead you astray.”
Mr Koch’s top tips to avoid bogus financial advice
1. Don’t use a broad-brush approach. There is no one-size-fits-all approach to managing finances so take caution when using tactics promoted online. What’s worked for one person might not work for you, so it’s vital to take your own specific needs and circumstances into account.
2. Seek independent financial advice. By going with an independent provider, you are more likely to receive unbiased advice that is based on your individual needs. Keep in mind that anyone giving personal financial advice in a professional manner must be licenced so it’s a good idea to vet this before proceeding.
3. Beware of scams & schemes. In the digital age, scams have become harder than ever to spot. Always be wary of an entity that asks for your personal details without first proving themselves to be who they say they are. And when it comes to schemes – if the offer sounds too good to be true, it probably is!
For more information, please contact:
Natasha Innes | 0416 705 514 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
