NEW YORK--(BUSINESS WIRE)--Zip (ASX: ZIP), a digital financial services company offering innovative, people-centered products, today released findings from its Breaking Financial Taboos survey, highlighting the critical need to address the culture of financial secrecy that pervades American society. Zip surveyed over 16,500 individuals aged 18 and over nationwide to uncover the barriers for having open financial discussions and to emphasize the need for comprehensive financial literacy and transparency.
“Americans deserve to be financially empowered as they navigate everyday obstacles like rising costs of living and inflation,” said Joe Heck, CEO, US of Zip. “That begins with fostering a more open dialogue around personal finances. This data is meant to spark a public discourse, promote financial literacy, and humanize financial issues that can affect anyone in today’s society.”
Silence Isn’t Golden: Americans Dodge Money Talk, Even With Family
While 73% of respondents feel comfortable discussing their finances with their spouse or partner, only 29% are willing to share financial details with friends, and a mere 12% feel comfortable discussing these matters with their children. Almost 1 in 10 (8%) respondents reported that they do not discuss their personal finances with anyone at all.
Work colleagues (33%) and friends (32%) are the most commonly avoided groups when it comes to financial conversations. Even among close family members, such as parents and children (26% each), there is a significant tendency to avoid these discussions.
Fiscal Family Feuds: Struggle with Money Talk Starts at Home
7 in 10 (71%) of respondents also admitted to secret spending, with 36% having spent over $500 without informing their partner. 1 in 20 respondents (5%) claim to have spent over $5000 without telling their partner. Many respondents believe it can be taboo to discuss certain financial matters, including debt, salary and bonuses, and financial struggles, as it may lead to uncomfortable comparisons or misunderstandings. However, those from younger generations have a strong desire to learn how to have these conversations, with trusted figures in their lives.
Fiscal Etiquette: The Societal Norms That Silence Frank Discussions About Finance
1 in 2 (46%) of respondents view personal finances as a private matter or are concerned about privacy, illustrating a greater need for a cultural shift towards more open financial dialogues. The most taboo financial topics are debt (38%), savings (28%), and salary and bonuses (27%). 1 in 5 (19%) also find it a taboo to discuss their FICO score.
Dollars and Sense: Who We Trust for Financial Wisdom
Parents and family (42%) and financial advisors (40%) are the primary sources of financial knowledge for many respondents. In today’s digital world, online resources (33%) and YouTube (29%) play significant roles. YouTube is the top social media platform for financial learnings, with 29% of respondents preferring it, followed by Instagram at 20% and Facebook at 18%. Traditional sources like schools and colleges (19%) lag behind.
For tech-native Gen Z, social media is a key tool in gaining financial literacy. Among the platforms they turn to, YouTube stands out, with 33% of Gen Z respondents using it more than any other source, apart from their parents, to learn about finances. Participants falling in pre-retirement and retirement years appear uncertain for many, as 7 in 10 respondents aged 50 to 65 report not having received any financial education or counseling.
To learn more about Zip, visit http://www.zip.co.
About Zip
ASX-listed Zip Co Limited (ASX: ZIP) is a digital financial services company, offering innovative and people-centered products. Operating in two core markets - Australia and New Zealand (ANZ) and the United States (US), Zip offers access to point-of-sale credit and digital payment services, connecting millions of customers with its global network of tens of thousands of merchants.
Founded in Australia in 2013, Zip provides fair, flexible and transparent payment options, helping customers to take control of their financial future and helping merchants to grow their businesses. US loans through the Zip app and Zip Checkout are originated by WebBank. All loans are subject to credit approval.
For more information, visit: www.zip.co.
