Like many people, money and personal finance were not topics often talked about when I was growing up. The same was true when it came to credit. In fact, I was raised to believe credit was something to avoid. I didn’t learn credit can be a financial tool to unlock many of the things we want in life until I was much older. This meant I learned a lot about credit and personal finance by making mistakes. And new research reveals this is the case for many Americans. Understanding credit and personal finance is paramount for financial well-being, especially for younger generations navigating today's financial landscape. Yet, against the backdrop of Financial Literacy Month, our new research shows a lack of financial knowledge is leading to costly financial mistakes for many. In fact, our survey of 2,000 adults across the U.S. revealed three in five adults feel their limited understanding of credit and personal finance has led them to make financial mistakes, with 60% of this group stating these mistakes have cost them $1,000 or more. This trend is particularly apparent among younger groups with 71% of Gen Zers and 70% of Millennials claiming their inadequate knowledge of credit and personal finance has come at a price. Twenty-nine percent of Gen Zers and 38% of Millennials report these financial mistakes have cost $5,000 or more. ADDITIONAL KEY FINDINGS INCLUDE: STATEMENT TOTAL GEN Z MILLENNIALS GEN X BOOMERS SILENT I have poor or no understanding of credit and personal finance 12% 18% 14% 12% 7% 0% I want to know more about credit and personal finance 66% 80% 79% 63% 48% 47% My limited understanding of credit and personal finance has led me to make financial mistakes. 60% 71% 70% 61% 44% 24% Financial mistakes I’ve made due to my limited understanding of credit and personal finance have cost me: $5K or more 37% 29% 38% 43% 33% 38% $1K or more 60% 58% 63% 64% 52% 63% $10K or more 23% 12% 22% 31% 24% 38% I learned about credit and personal finance: Through online research 32% 25% 36% 35% 27% 32% In school, college or community classes 33% 35% 26% 35% 35% 38% From a parent of family member 36% 31% 30% 38% 42% 47% Social media in some form 30% 52% 47% 24% 7% 0% I believe personal finance should be a required course in high school. 78% 72% 72% 81% 85% 88% I believe access to credit plays a significant role in my overall financial health. 80% 77% 82% 81% 78% 88% Bridging the Knowledge Gap These statistics underscore the importance of ongoing financial education. It's evident there's a strong desire among individuals, especially younger generations, to enhance their understanding of credit and personal finance. However, without adequate knowledge, many are susceptible to making costly financial mistakes. Navigating the mainstream financial system has its complexities, and if consumers don’t have a baseline understanding, it can be overwhelming. At Experian, we're committed to bridging this knowledge gap and empowering individuals to take control of their financial futures. We offer a range of free tools and resources designed to educate and empower consumers, including: Free Credit Reports: Gain insight into your credit history and monitor your financial health with a free copy of your Experian credit report and FICO Score®[1]. You can access these through our free mobile app or our website. Credit Monitoring: Stay informed about changes to your credit report and receive alerts about potentially fraudulent activity as part of our free Experian membership. Educational Resources: Check out our official credit advice blog, Ask Experian, where you'll find answers to common questions and expert advice on credit-related topics. Experian Boost®: Take advantage of this innovative tool to potentially improve your credit scores by adding positive telecom, utility, and other payments to your credit file.[2] Experian Go™: If you're new to credit, our mobile app offers a free membership to help you establish and build credit responsibly. Join Us in Celebrating Financial Literacy Month I also encourage consumers to join Experian’s weekly #CreditChat hosted by @Experian on X with financial experts every Wednesday at 3 p.m. Eastern time. In recognition of Financial Literacy Month, consumers can learn personal finance basics from experts each week on topics, including budgeting, savings, credit and debt, and more. Survey Methodology Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The makeup of the sample is representative of the U.S. population based on national census data regarding demographic variables such as gender, age and geographical regions. The margin of error for the overall sample is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 17 and March 21, 2024. [1] Credit score is calculated based on FICO® Score 8 model, unless otherwise noted. In addition to the FICO® Score 8, we may offer and provide other base or industry-specific FICO® Scores (such as FICO® Auto Scores and FICO® Bankcard Scores). Your lender or insurer may use a different FICO® Score than FICO® Score 8 or such other base or industry-specific FICO® Score (if available), or another type of credit score altogether. Learn more. [2] Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.
Experian’s purpose-driven culture is woven into our company’s DNA and informs everything we do. It empowers our people to thrive and excel in their roles. Additionally, it fosters a high-performance workplace centered on diversity, equity, inclusivity and making a positive impact on the communities where we and our families work, play and live. Our culture of innovation and “Together, We Win” workplace is a driving force behind Experian North America being named to Fortune’s 2024 100 Best Companies to Work For list for the fifth consecutive year. Great Place to Work® sponsors the prestigious Best Companies list, surveying more than 1.3 million employees and gathering data from companies representing more than 7.5 million employees. The survey enables employees to share confidential feedback about their organization’s culture by responding to 60 statements that – when put together – describe their experience, defined by levels of trust, respect, credibility and more. According to the Great Place To Work® 2024 Global Employee Engagement Study, 90% of employees at Experian say it is a great place to work compared to 57% of employees at a typical U.S.-based company. Ninety-three percent of respondents cited that they were “made to feel welcome” when they joined the company, and 91% indicated that they are “proud to tell others [they] work [at Experian].” This recognition continues Experian’s momentum with recent award wins, including winning the 2024 BIG Innovation Awards from the Business Intelligence Group; earning the top score on the Disability Equality Index® (DEI) for the second consecutive year; being named a 2023 “Best Place to Work for Disability Inclusion” by the American Association of People with Disabilities (AAPD) and Disability:IN; being recognized with the prestigious Fast Company 2023 World Changing Ideas Award for Experian Go™, a free program that empowers “credit invisibles” to establish their financial identity within minutes; and being named to Fortune’s America’s Most Innovative Companies list in 2023.
While cheering on your favorite tournament team during March Madness, basketball fans can become MVPs in financial literacy with Experian’s B.A.L.L. for Life™ (Be a Legacy Leader) gesture-controlled game. On the virtual court, the game can help students create their own shining moment in their financial health journey. The B.A.L.L. for Life program helps young adults and their families set up a game plan to building generational wealth; the gesture-controlled game tests players’ knowledge about credit. Credit and financial coaches teach the basics of budgeting, saving, credit, investing, homeownership and more. B.A.L.L. for Life debuted at the 2023 Iverson Roundball Classic, for which Experian has supported as the exclusive financial literacy partner since 2022. Back then, a younger Cason Wallace (now with the Oklahoma City Thunder) talked with our Chief Diversity and Talent Acquistion Officer Wil Lewis and Experian partner and recording artist Lecrae about the importance of understanding money matters. B.A.L.L. for Life serves as a catalyst for engaging with young adults and people who are credit invisible through live events and digital financial education. It powers in-person experiences such as the #IYKYK Pitch Competition (If You Know You Know) featuring HBCUs across the country, and The Legacy League Game Show which was part of the National Urban League’s 2024 Empowerment Summit. B.A.L.L for Life kicked off its college tour in November at the University of Texas San Antonio; Shaw University and Morgan State University will be its next stops in April. To learn more about B.A.L.L. for Life™, visit experian.com/legacy.
Today, we stand at the forefront of a digital revolution that is reshaping the financial services industry. And, against this backdrop, financial institutions are at vastly different levels of maturity; the world’s biggest banks are managing large-scale infrastructure migrations and making significant investments in AI while regional banks and credit unions are putting plans in place for modernization strategies, and fintechs are purpose-built and cloud native. To explore this more, I recently had the privilege of attending the annual Reuters NEXT live event in New York City. The event gathers globally recognized leaders across business, finance, technology, and government to tackle some of today’s most pressing issues. On the World Stage, I joined Del Irani, a talented anchor and broadcast journalist, to discuss the future of lending and the pivotal role of data and AI in building a more inclusive financial system. Improving financial access Our discussion highlighted the lack of access to traditional financial systems, and the impact it has on nearly 100 million people in North America alone. Globally, the problem affects over one billion people. These people, who are credit invisible, unscoreable, or have subprime credit scores, are unable to secure everyday financial products that many of us take for granted. What many don’t realize is, this is not a fringe subset of the population. Most of us, myself included, know someone who has faced the challenges of financial exclusion. Everyday Americans, including young people who are just starting out, new immigrants and people from diverse communities, often lack access to mainstream financial products. We discussed how traditional lending has a limited view of a consumer. Like looking through a keyhole, the lender’s understanding of the person in view is often incomplete and obstructed. However, with expanded data, technology, and advanced analytics, there is an opportunity to better understand the whole person, and as a result have a more inclusive financial system. At Experian, we have a unique ability to connect the power of traditional credit with alternative data, bringing a more holistic understanding of consumers and their behaviors. We are dedicated to leveraging our rich history in data and our expertise in technology to create the future of credit and ultimately bring financial power to everyone. The future of lending After spending two days with over 700 industry leaders from around the world, one thing is abundantly clear: much like the early days of the internet, today, we are at the cutting-edge of a technical revolution. Reflecting on my time at Reuters NEXT, I am particularly excited by the collective commitment to drive innovative, and smarter ways of working. We are only beginning to scratch the surface of how data and technology can transform financial services, and Experian is positioned to play a significant role. As we look to the future, I am excited about the ways we will create new opportunities for businesses and consumers alike.
The advertising ecosystem has seen significant transformation over the past few years, with increased privacy regulation, changes in available signals, and the rise of channels like connected TV and retail media. These changes are impacting the way that consumers interact with brands and how brands understand and continue to deliver relevant messages to consumers with precision. Experian has been helping marketers navigate these changes, and as a result, our marketing data and identity solutions underpin much of today’s advertising industry. We’re committed to empowering marketers and agencies to understand and reach their target audiences, across all channels. Today, we are excited to announce our acquisition of Audigent—a leading data and activation platform in the advertising industry. With Audigent’s combination of first-party publisher data, inventory and deep supply-side distribution relationships, publishers, big and small, can empower marketers to better understand their customers, expand the reach of their target audiences and activate those audiences across the most impactful inventory. I am excited to bring together Audigent’s supply-side network as a natural extension to our existing demand-side capabilities. Audigent’s ability to combine inventory with targeted audiences using first-party, third-party and contextual signals provides the best of all worlds, allowing marketers to deliver campaigns centered on consumer choices, preferences, and behaviors. The addition of Audigent further strengthens our strategy to be the premier independent provider of marketing data and identity, ultimately creating more relevant experiences for consumers. To learn more about Experian and Audigent, visit https://www.experian.com/marketing/ and https://audigent.com/.
When it comes to cybercriminals and threat vectors, we need to expect the unexpected. Experian’s 12th annual Data Breach Industry Forecast highlights several potential trends for 2025, with AI playing a central role. This year has already seen more data breaches and impacted consumers than 2023, indicating that global data breaches are not slowing down. Some things to watch out for next year includes the potential for more internal fraud. As companies train employees on AI, there is a growing risk that some will misuse their knowledge for internal theft and sourcing sensitive information. Another trend may be cyberattackers targeting large data centers, with the growth of generative AI introducing power as a new attack vector. It’s reported that a single ChatGPT query uses significantly more electricity than a standard Google search, making data centers and cloud infrastructure vulnerable, especially in countries with varying security standards. We expect AI-related attacks to dominate the headlines next year and investments in cybersecurity will increase to tackle this emerging threat, as hackers leverage AI for phishing, password cracking, malware, and deepfakes. Jim Steven, Head of Crisis and Data Response Services at Experian Global Data Breach Resolution in the UK, anticipates that global data breaches will persist at their current rate next year. He notes that ransomware attacks are likely to become even more sophisticated with the integration of AI. Additionally, Steven predicts that threat actors will escalate their tactics to achieve greater rewards, and the misuse of consumer data to damage reputations will increase in 2025. To access the complimentary report, click here.