Financial literacy is undergoing a radical transformation, driven by Millennials (age 29-44) and Gen Zs (age 13-28), who are rewriting the norms of money management. Unlike previous generations, which relied on financial advisers, banks and formal education, younger consumers’ financial classrooms encompass the likes of TikTok, YouTube, and fintech apps.

Bite-sized videos explaining credit scores, investment strategies, and budgeting techniques are reaching millions, and these younger consumers are empowered with immediate, accessible, and highly relatable financial advice – often delivered by peers who share their economic realities.

Daniel Hawkins, head of marketing at PayJustNow, says that the shift is not only redefining how younger people learn about money, but also how they spend, save, and borrow.

“The rise of digital financial literacy marks a clear departure from traditional models. Today, influencers can explain the nuances of credit scores in 60 seconds, and fintech apps can approve credit in minutes. Younger generations are leveraging this technology to make informed decisions and take control of their finances.”

But, says Hawkins, not all financial advice on social media is created equal. As of April 2025, the Financial Sector Conduct Authority (FSCA) is taking a firmer stance on the growing number of unregulated ‘finfluencers’ dispensing financial advice online.

“It’s essential for consumers to distinguish between general educational content and actual financial advice,” Hawkins explains. “Before acting on any recommendations check whether the person is a registered financial services provider.”

Consumers can verify if someone is an authorised financial adviser by searching the FSCA’s official database. “Stick to trusted sources like your bank or payment provider for financial education, beware of promises of guaranteed returns or pressure to act quickly, and always consult with a licensed adviser if you’re unsure,” Hawkins adds.

Millennials and Gen Zs are also increasingly rejecting traditional credit models in favour of alternatives that offer more control and transparency. According to TransUnion’s Q4 2024 Consumer Pulse Report, 54% of credit-seekers abandoned their applications due to high costs or the availability of more convenient alternative funding sources. Instead of high-interest credit cards and revolving credit facilities, younger consumers are turning to interest and fee-free options like buy-now-pay-later (BNPL).

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Source: https://it-online.co.za/2025/04/29/millennials-and-gen-zs-are-redefining-financial-literacy/