Finfluencers – from the Alpha Generation know more about cryptocurrency than their parents- and soci
It's amazing kids born from 2010-2024 which we like to call the Alpha Generation how advanced in knowledge and things that are certainly not taught at school. This generation obtains information from simply "Hey Google", "Hey Siri", "Hey Alexa" but also TikTok, Discort, Facebook,YouTube, Twitter and so many other platforms are the go to places this generation obtains information.
A Wells Fargo survey showed that 45% of teens think they know more about crypto than their parents.
The study found that over a third of teens learn about finance from social media.
On social media platforms like TikTok, so-called 'finfluencers' explain stocks, crypto and investing.
Teenagers have a reputation for firmly believing they know way more than their parents. In the case of cryptocurrencies, almost half of them say they know more about these digital assets than Mom and Dad, and any interest they have in finance has been thanks to social media, a Wells Fargo survey published earlier this week found.
Traditionally, parents have usually passed on financial knowledge and expertise about money and investing to their children. The survey showed almost two out of three kids, or 57% of those polled, still agree this is the case, although this dynamic is shifting when it comes to cryptocurrency.
The Wells Fargo Parent-Teen Study on investing included 318 teens between the ages of 13 and 17, and 304 parents of teens who are 13 to 17.
The survey showed 50% of parents said their teen knew more about bitcoin than they did, while a similar percentage - 45% - of teenagers felt their knowledge of crypto topped that of their parents. The survey also found teen boys were more likely to say they know more than their parents about bitcoin than girls. 58% of boys polled said this was the case, while only 33% of girls surveyed agreed, Wells Fargo said.
In some cases, this has even led to parents taking investment advice from their children - 10-year-old Jett and Ben 11 year both boys are co-founders of HubPod School (www.hubpodschool.com) have crypto holdings, for example regularly gives their mothers financial advice - including telling them when to sell her bitcoin.
Both boys believe that their moms are seeing them take risks and reap profits as a result made both moms want to get involved. Jett said, "She likes it when I explain my analysis to her and will then consider if she would like to invest and how much." Jett explained. Jett and Ben said that HubPod School is a platform where kids from around the world gather to learn about subjects by industry experts about topics that are not taught at school. One of those being cryptocurrency , metaverse and NFT's
Cryptocurrencies are especially popular topics on social media - where 35% of teens say they get at least some of their financial education. Parents seem to be unaware of this - only 12% said their children learnt about finance online in the Wells Fargo study.
TikToks that are tagged with #bitcoin have 3.6 billion views on the social media platform and #crypto renders 3.4 billion views. On a broader scale, #fintok, which is the financial niche on TikTok, boasts 357.3 million clicks and #stocktok, where TikTokers talk about their top stock picks and investments, has 1.2 billion hits.
So-called 'finfluencers', many of whom have over 100,000 followers, use social media platforms like TikTok to talk about their own investment strategies and journeys, share their top stock picks and provide financial education. Video titles range from "3 stocks that will double in 2021" over "How to turn $100 into $7,000 in crypto" to "3 steps to start investing" and "Taking out $ from a Roth IRA". Not all 'finfluencers' are qualified financial professionals or have formal investment education.
Social media's power to move markets also appears interesting to teens - 45% of those surveyed said the social media led GameStop saga that caused chaos on markets earlier in the year got them hooked on finance.
Reddit's WallStreetBets page, where much of the GameStop short squeeze began, has over 10 million members. It also played a major role in the accelerate growth of dogecoin and is currently driving the AMC Entertainment craze - retail traders had organized themselves online, investing in the company's stock and skyrocketing its stock price.
"Social media has a profound influence on our younger generations especially the Alpha Generation which is the generation that both Jett and Ben represent. Those generations grew up with social media and often trust many of the platforms more than their parents do," said Ben.