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Data Snack: Gen Z turn to social media for financial advice

  • Social media influencers are becoming a popular source for Gen Zers hoping to improve their financial literacy
  • At the same time, users admit to taking advice from people they don't know. That's risky -- especially when it comes to advice on where and how to invest.
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Data Snack: Gen Z turn to social media for financial advice

What do you picture when you think of a financial advisor? Most likely — it’s a person with a nice suit sitting across from you at a nice desk and pouring over your financial files with you. 

Just ask Google Images

But if you’re a Gen Zer, you may be picturing someone else — a person who isn’t sitting at a desk, and may not even be wearing a suit. 

And that’s because the majority of Gen Zers aren’t usually going to these desk-occupying financial advisors for advice — they’re going to social media.

A study by Credit Karma found that 63% of Gen Zers go to social media to get their financial advice — these topics range from budgeting and taxes, to crypto and paying back student loans. 77% say they follow specific social media influencers who create content about these topics. 

One reason for this generation’s preference is the classic one — Gen Zers are a digital-first generation and these platforms offer fun, bite-sized material that can be consumed on a mobile device. Then there’s the interactive aspect, which lets users engage directly with the material.

“Learning in this setting is a collaborative, engaging experience, as Gen Z can share their own experiences and opinions, while getting advice from influencers they trust,” Poulomi Damany, GM of Credit Karma. “That makes the learning and advice a lot more fun than reading a book on investing.”

 


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