Key Takeaways

  • Younger people’s understanding of inflation has improved over the past three years, according to data from FINRA.
  • The amount of 18- to 34-year-olds correctly answering a survey question about inflation in 2024 was 10 percentage points higher than in 2021.
  • A separate survey found 40% of Gen Z respondents say they use social media as a source of financial info. 

Having to adapt to high inflation may be giving younger people a real-time understanding of how it affects their finances. 

That’s according to the annual financial literacy survey from the Financial Industry Regulatory Authority, or FINRA. On a question evaluating respondents’ understanding of inflation, the amount of 18- to 34-year-olds answering correctly was 10 percentage points higher than in 2021 (34% to 44%). The 35 to 54 cohort improved 6 percentage points (49% to 55%) and there was no change among those 55 and older (72%).

“[T]hese findings support the hypothesis that living through periods of higher inflation helps people better understand how inflation affects purchasing power,” the FINRA report said.

If you’d like to test yourself, the FINRA Financial Knowledge Quiz can be accessed here. 

How Gen Z Learns About Finance

Gen Z has shown an appetite to educate themselves on financial matters, according to Rod Griffin, senior director of public education and advocacy at Experian.

“Gen Z is much more inquisitive and much more open to learning and engaging in financial activities,” Griffin said. “I talk to a lot of Gen Z people and they’re asking questions I would never have thought to ask at that age.”

The concern for Griffin is whether the information Gen Z is getting is accurate, given their wide breadth of sources of information. For example, he pointed to a Gallup poll conducted earlier this year that found 42% of respondents say they use social media as a source of financial info.

“The thing I take away from this survey and others is that there is a passionate pursuit of information,” Griffin said. “We just have to make sure that passion is fulfilled with accurate, actionable information that’s going to give them the results they want.”