Commission cautions Gen Z about “get rich quick” schemes

Commission cautions Gen Z about "get rich quick" schemes

The Financial and Consumer Services Commission of New Brunswick (Commission) is launching an Investor Education Month (IEM) campaign focused on the importance of setting up good investing habits and managing expectations at a young age, targeting the Gen Z demographic with a message that resonates in today's digital age.

IEM, which takes place every October, is a national initiative aimed at empowering consumers with the knowledge and tools needed to make informed investment decisions.

Young adults tend to be the least likely demographic to use traditional investment professionals and prefer to seek investment information on social media platforms according to the Canadian Securities Administrators (CSA) 2024 Investor Index.

"In an age where information is abundant and often overwhelming, it's more crucial than ever for young people to have access to objective, unbiased resources," said Marissa Sollows, the Commission's Director of Communication and Public Affairs.

"Our goal is to provide Gen Z with a trusted source for the knowledge they need to navigate the investment landscape safely and confidently. We want them to understand that investing at an early age can set the foundation for long-term financial success, but they should think critically about information they find, especially on social media where unqualified financial advice abounds."

The Commission's 2024 IEM campaign, The Right Regimen will involve a series of engaging videos specifically designed to connect with Gen Z on social media. The campaign will focus on why young New Brunswickers should not believe everything they hear online when it comes to making investment decisions, and that there are no magic short-cuts to reaching your money goals. The videos will go on to describe The Right Regimen for investing, which has three core principles:

• Set realistic goals
• Don't be tempted by shortcuts
• Be disciplined and patient

"For a generation that tends to focus on living in the moment and prioritizing short-term satisfaction over long-term planning," added Sollows. "This mindset can make them more vulnerable to get-rich-quick schemes and high-risk financial products. Our campaign aims to highlight the risks of following false promises often made by social media 'finfluencers.'"

The Commission's initiative will also extend into classrooms, with a presentation tailored for high school students. This presentation will emphasize the importance of starting to save early. By connecting with students through examples they can relate to, such as automating savings from their first jobs and utilizing savings vehicles like Tax-Free Savings Accounts (TFSAs), the Commission hopes to inspire the next generation to confidently take control of their financial future.

"With the rise in fraudulent players in the investment world, it's more important than ever to equip people with the tools they need to make informed decisions," said Sollows. "We want to drive home the message that there's no magic trick to financial success, despite what they hear on social media. As they make financial decisions that can have a real impact on their future selves, we're here to be an unbiased and qualified source for information."

New Brunswickers can follow the campaign on the Commission's Instagram page, or visit FCNB.ca to book a presentation.

Audio files of Mariss Sollows, Director of Communications and Public Affairs

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The Financial and Consumer Services Commission of New Brunswick has the mandate to provide regulatory services that protect the public interest while enhancing public confidence, and to promote understanding of the regulated sectors through educational programs. It is responsible for the administration and enforcement of financial and consumers services legislation for mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, the unclaimed property program, and a wide range of other consumer legislation. It is a Crown corporation funded by the regulatory fees and assessments paid by the regulated sectors. Online educational tools and resources are available at www.fcnb.ca.