A growing number of Australians are renewing their interest in finance, with social media platforms including TikTok becoming a vital source of information, new research has revealed.
Survey results by MLC wealth showed that over half of the population is now placing greater emphasis on savings compared with last year, while 25 per cent plan to start an emergency fund.
Tim Steele, group executive, retirement and investment solutions at MLC Wealth, said that in the face of uncertainty and a hit to financial confidence, it was no surprise more Australians were putting an emphasis on savings.
“Despite strong economic data, the emotional and financial hangover of COVID-19 is very real for many Australians and savings are understandably seen as an important safety net,” Mr Steele said.
“With a greater focus on savings, Australians need to be informed about their financial decisions and take proactive action. Small, educated steps taken now can make a big difference to your future financial outcomes, particularly when it comes to making the most of your savings.”
MLC’s research also found that social media and forums are growing as a source of financial information and guidance among young Australians, with 13 per cent aged between 18 and 34 regularly using platforms such as TikTok, Facebook and Instagram as a financial resource.
Additionally, 4 per cent of Australians aged between 18 and 34 list social media as their most trusted source of financial information and guidance.
Mr Steele said that while it was great to see so many Australians undertaking research before making financial decisions, he said it highlighted a need for Australians to think more broadly about where they source financial information.
“It is important Australians continue to consider their financial decisions, but ensure they back up insights from relatives, friends and members of their online communities with credible information sources such as from the Australian government, financial and consumer associations, superannuation funds or a professional financial adviser,” Mr Steele said.
The survey revealed that two in three Australians strongly or somewhat agree they ‘do a lot of research before making a significant financial decision’.
However, the most common source of financial information and guidance is friends and relatives, with 42 per cent of respondents seeking their input, followed by financial websites and then financial advisers.
“As we move into a stronger economic climate, it is timely for people to take stock of their circumstances. We know having a clear view of your financial outlook is the first step in building financial confidence,” concluded Mr Steele.
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