Which sources of information should you rely on when it comes to your savings?

When it comes to finance, social media remains the primary source of financial information in Europe, ahead of traditional media, according to the third edition of Pictet AM's study on financial literacy.

Institutions and schools should be responsible for financial education, except in the United Kingdom, where participants believe that financial advisors should also support efforts to educate the public on financial matters.

These are the findings of the third edition of the study conducted by Pictet Asset Management in collaboration with FINER Finance Explorer.

The study examines the level of financial literacy in France, Italy, Spain, Germany, and the United Kingdom. The sample included investors and non-investors from Generations Z, Y, X, and the baby boomer generation, with varying levels of financial assets. The data was collected by FINER Finance Explorer over a one-month period, based on interviews with more than 9,000 participants in the European Union and the United Kingdom.

Growing Interest in Finance
Market uncertainty, the complexity of the economy, and increasing geopolitical instability have led to a resurgence of general interest in finance this year, with participants from diverse backgrounds and countries showing a growing curiosity and desire to delve deeper into the subject. 
Interest in finance has increased across Europe since the 2022 study. In 2023, in France, 37% of participants said they were very interested in the subject (up 4% from 2022), while 39% said they would like to learn more about finance, even though they have very little knowledge of the subject (up 3% from the last survey). 
Life plans (41%) and savings (29%) are the main reasons why French participants wish to improve their financial literacy and potentially invest their money. However, despite these reasons, many fears are holding participants back from investing. In France, the two main concerns are panic during a stock market crisis (29%) and an ill-prepared financial advisor (36%).

Sources of Information
Social media has become the primary source of information on finance-related topics, raising questions about the accuracy of the information it provides to an ever-growing audience. This shift has occurred as trust in these platforms has grown significantly. This year’s study shows that social media and digital content are among the most popular sources of financial information. In France, 36% of the sample reported using social media to stay informed about financial issues, ahead of television (14%) and print media (9%). The same trend is observed throughout Europe.

The importance of social media as a reliable source of information is evident across the entire sample (investors and non-investors), regardless of the participants’ generation or net worth. There are, of course, differences in social media usage across generations. Facebook and LinkedIn are most commonly used by older generations, while Instagram and Telegram are more popular among younger demographics. In France, Instagram became the most widely used social media platform for financial content in 2023. Twenty-four percent of participants use this platform primarily to interact with experts and stay informed about the latest developments in the financial sector. 
 

Although trust in social media platforms has increased by 19% in France, it is interesting to note that this year’s study also shows that most participants find it difficult to find reliable and relevant information when it comes to financial topics. Forty-four percent of the French sample said they were unable to find the right information or the right people to develop and expand their financial knowledge. 
 

Who Should Be Responsible for Financial Education?
The responsibility for educating the public on financial matters lies with various entities that play a crucial role in imparting financial knowledge and promoting financial literacy across all regions covered by this year’s study. Government institutions and regulators remain at the top of the list, with 37% of French participants believing that it is their responsibility to educate citizens about finance, ahead of schools (30%) and financial advisors (17%), as is the case almost everywhere in Europe.