Why College Students Rely on Family for Financial Guidance

Introduction

When it comes to seeking financial advice, college students are more likely to turn to their parents or family members than banks, friends, mentors, or even celebrities. This was revealed in a recent survey conducted by Morning Brew and Generation Lab, which found that 64% of college students rely on their family for financial guidance. The survey, conducted among 978 college students in the US, sheds light on the financial behavior of the younger generation.

The Role of Family

According to the survey, 64% of college students turn to their parents or family members for financial advice. This far surpasses the other options such as banks, friends, mentors, entrepreneurs, or celebrities. The strong reliance on family for financial guidance is not surprising considering another survey by Experian found that over 6 out of 10 Gen Z respondents admitted to being financially dependent on their parents.

The Influence of Social Media

While family is the primary source of financial advice, it is not the sole source. The survey conducted by the CFA Institute and Financial Industry Regulatory Authority Investor Education Foundation revealed that 48% of US Gen Z respondents used social media to learn about investing and financial topics. This makes social media the most frequently used source, slightly ahead of web searches and family.

Financial Expectations

The survey also identified that 45% of Gen Z college students expect to achieve financial success in their 30s, while over 7 out of 10 students said they would be satisfied with a net worth of $1 million. Interestingly, Microsoft founder Bill Gates emerged as the top financial icon among the respondents of the survey.

Conclusion

College students increasingly rely on their family for financial guidance. High percentages of students turn to their parents or family members for advice, showcasing the trust and support they receive from their loved ones. Meanwhile, social media plays a significant role in shaping their financial knowledge and decision-making. As the younger generation navigates their financial journey, they seek a combination of trusted sources, including family and digital platforms, to guide them toward financial success.

Source: Gen Z doesn’t want financial advice from banks or celebrities. They’re going to mom and dad instead.