Uni students turn to TikTok for finance advice before parents, data suggests

One-quarter of Gen Z Brits are sourcing information about personal finance from TikTok

A new study from Shepherds Friendly, a financial mutual society offering ISAs, life insurance and income protection, has revealed how financially literate Brits truly are, as well as where the most financially literate residents reside.  

• Over one in four Gen Zs are sourcing information on personal finance from TikTok
• Just over a quarter of Brits passed Shepherds Friendly’s money literacy test which has quizzed the UK on their knowledge of ISAs, investing and general personal finance topics
• People in the UK scored the lowest on questions about general personal finance, scoring the highest on questions about investing

The cost of living crisis has made it even more important to understand the ins and outs of our personal finances. However, with the world of finance being fraught with confusing jargon, it’s no surprise that many of us regularly feel overwhelmed.

To find out how much Brits really know about their finances, Shepherds Friendly has quizzed 2,000 consumers across the UK on the topic of ISAs, investing and general personal finance. 

Gen Zs are mostly sourcing information on personal finance topics from TikTok with a quarter turning to the app for guidance 

Whilst the survey also reveals that Brits are mostly sourcing information on personal finance from their banks (29%), it might not come as a surprise that Gen Zs are mostly getting information about personal finance topics from TikTok (26%).

Meanwhile, TV shows (such as The Martin Lewis Money Show) are the second most popular way for Brits to gather information on personal finance topics (25%), and the most common way those aged 55 and over (36%) are sourcing their information on money related topics.

Just 27% of Brits passed the money literacy test, meaning almost three-quarters struggle with financial literacy

Quizzing the UK on questions relating to ISAs, investing and general personal finance, Shepherds Friendly has found that almost three-quarters of people struggle with basic financial literacy with just 27% of respondents getting half or more of the quiz questions correct. 

Breaking this down by theme, it might come as a surprise that respondents revealed they know the most about investing (40%), followed by ISAs (34%) and general personal finance (28%). With investing becoming an increasingly popular and accessible method for building wealth, this could explain why Brits have the best knowledge in this area.

The quiz also revealed that men in the UK are more financially literate than women, with 31% getting half or more of the questions correct compared to just 24% of women. Meanwhile, those aged 55+ scored the best on the quiz (scoring 35%) whilst those aged 18-24 scored the lowest (scoring 17%).

Just one in three Brits are putting their savings into an ISA account with more than a quarter keeping their savings in a current account

With ISAs being one of Brits’ weakest knowledge areas, the study found that just one in three are putting their savings into an ISA, with those aged 18-24 the least likely to do so (24%). Meanwhile, over two-fifths (43%) are putting their savings into other types of savings accounts.

Shockingly, more than a quarter (26%) admit to keeping their savings in a current account where their savings fail to make interest.

Derence Lee, Chief Finance Officer at Shepherds Friendly, says:

“It’s never been more important to take time to understand our personal finances and make sure we’re utilising methods to help grow and protect our savings. 

“Our study shows that there are areas of personal finance that many people struggle with. In particular, we found individuals lack confidence in their knowledge of ISAs. Whether you’ve never attempted to save before or are struggling to manage a realistic savings goal, there are simple steps you can take to help grow your personal finances without feeling overwhelmed. At Shepherds Friendly, we’re here to help you better understand and grow your personal savings with a range of ISAs available depending on your saving goals.”

For more information, see the full results here.

Methodology 

We surveyed 2,003 Brits aged 18 and over on their knowledge of personal finance. 

The pass rate of the quiz was calculated by finding the percentage of respondents who got half or more of the quiz questions on ISAs, investing and personal finance correct.