I have spent over 20 years helping people across the country learn about credit and personal finance through a variety of forums and channels and helping people increase their financial knowledge is a personal passion. We know that many consumers are hungry for tools and resources to improve their understanding of credit and personal finance. The challenge is often determining the most effective ways to reach consumers and disseminate information.
Early in my career, this consisted of planning events in the evenings and weekends, printing and mailing brochures, and creating rudimentary web pages. Over time, print almost disappeared and we began reaching consumers through our “online credit advice column” (years later we learned it was one of the first blogs of our sector) and to engage directly via social networks and video conferencing.
Today, we are entering an exciting new era with the emergence of generative artificial intelligence (AI) solutions and capabilities.
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Generative AI is a technological advancement that promises to revolutionize many industries, much like the introduction of the Internet and the smartphone in their time. Just as these innovations have transformed the way we communicate, access information, and manage our daily lives, generative AI has the potential to reshape the way we approach learning and managing our personal finances.
Many Americans are already noticing this. Actually new search for my business reveals that 63% of consumers are familiar with generative AI, including 84% of Gen Z and 79% of Millennials. Most of these consumers are not only aware of generative AI; they actively use it to learn about new topics, including personal finance. Nearly half of respondents have used or are considering using AI-based tools to manage their finances with a staggering 96% reporting positive experiences.
The appeal of generative AI
For many, the appeal of technology lies in its accessibility and efficiency. In many cases, it’s free, easy to use, can save consumers time and money — and they feel good about using it.
Our research indicates that 67% of users feel more productive and make decisions faster with generative AI . These tools can make tasks like answering basic financial questions easier, helping users understand key concepts like credit scores Or interest rate and even offer personalized suggestions for creating a budget.
For young consumers who do not have access to financial literacy school programs or for parents willing and equipped to share their financial knowledge, generative AI can be a revolutionary resource available at your fingertips.
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Three Tips to Keep in Mind When Using Generative AI
As with any new tool, it is important to be aware of potential limitations and responsible use. If you are currently using or considering using generative AI to learn more about or manage your personal finances, here are three tips to keep in mind to protect your financial health long term:
Remember the fundamentals. While generative AI can be a valuable tool for financial management, it’s important not to neglect traditional methods of protecting your financial health and credit, including regularly checking your credit reports and scores.Validate the information. Generative AI tools rely on the data they are trained on, and there is a lot of misinformation about credit scores and financial management online. Always verify AI-generated financial advice from trusted sources.Use AI responsibly. Many generative AI tools collect and store user data. Be careful when sharing personal information, to ensure the security of your data.
There is no one-size-fits-all solution to improving financial literacy and health. Generative AI is a promising addition to the toolbox, but it should be used in conjunction with others financial resources and practices .
By combining traditional approaches to financial literacy with the innovative capabilities of generative AI, consumers can navigate their financial journey more effectively.
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The information provided here does not constitute investment, tax or financial advice. You should consult a licensed professional for advice regarding your specific situation.
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