Member Exclusive

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.

Email a Friend

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.”


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Data Snack: Gen Z turn to social media for financial advice”

Data Snacks, Member Exclusive

Data Snack: SMBs are growing increasingly resilient against macro headwinds

  • SMBs are confident they can successfully get through another period of economic difficulty despite inflation and supply chain issues, a new survey by Kabbage shows.
  • Having experienced the pandemic, SMBs feel better prepared to successfully navigate another period of economic turbulence.
Iulia Ciutina | June 28, 2022
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: What can we learn from the Celsius withdrawal freeze?

  • This week, we try to make sense of the Celsius withdrawal freeze and discuss its implications for investors and the wider industry.
  • We also hear from Zero Hash co-founder Edward Woodford on the convergence of DeFi and TradFi.
Ismail Umar | June 28, 2022
Finance Everywhere, Member Exclusive

Embedded Briefing: How embedded platforms rose in preference for SMBs looking to borrow

  • In 2021, alternate lenders led the uptick in SMB loan application approval, approving 24.5% of the loans, as against the 23.8% approved by institutional lenders.
  • Why have traditional lenders been unable to effectively meet SMB demand? Because they can't figure out how to do it profitably.
Subboh Jaffery | June 27, 2022
Green Finance, Member Exclusive

Green Finance Briefing: Greenwashing on Wall Street, and climate tech stocks outperforming the market

  • Regulators have started to investigate misleading ESG claims at big banks, signaling that they’re paying close attention to the wave of greenwashing happening in finance.
  • Elsewhere, climate tech stocks continue to outperform the market, and UN Secretary General Antonio Guterrez bemoans the counterproductive attitude of the finance industry towards climate change.
Iulia Ciutina | June 24, 2022
Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
More Articles