More than four in 10 among 18-34-year-olds have sought financial tips on social media.
A recent survey conducted by investment firm Hargreaves Lansdown in collaboration with Opinium has highlighted the growing trend of young people, particularly those aged 18 to 34, turning to social media for financial advice. This demographic has shown a significant inclination towards using online platforms for guidance on various financial topics including spending decisions, budgeting and investments.
The survey, carried out in September, reveals that among younger people, social media is the foremost choice for financial guidance, especially when deciding what to spend money on. More than one in four young individuals and over one in ten from all other age groups have sought spending tips and inspiration on social media.
When it comes to investment advice, social media serves as the primary source for the younger generation. Although for all age groups combined, financial company websites slightly edged out social media, the latter still holds substantial sway.
While financial company websites provide a traditional avenue for guidance, the appeal of social media lies in its accessibility and diverse content. Platforms like TikTok and Reddit have become particularly popular among young users for spending tips. Budgeting advice is predominantly sought on Instagram, while questions surrounding pay and debt are often directed to X, previously known as Twitter.
The reliance on social media for financial tips is not without its challenges. Many users take advice from individuals who may not have substantial expertise or are only perceived as knowledgeable due to their social media following. This can lead to questionable or potentially harmful financial decisions if the advice is taken at face value without further scrutiny.
Despite these risks, social media remains a convenient and often engaging medium for financial advice, especially for those who prefer learning from peers or engaging personalities. However, the survey indicates a more cautious approach when it comes to delicate subjects such as money worries or debts. In these instances, individuals, particularly those aged 18-34, are more likely to seek help from dedicated charities or their parents, though many still favour social media.
The trend towards using social media for financial advice reflects a broader shift in how people, especially younger generations, prefer to engage with information. The digital landscape provides a platform for shared experiences and insights which, despite the inherent risks, offers a sense of community and support that traditional sources may lack.
Source: Noah Wire Services
More on this & verification
- https://www.moneymarketing.co.uk/news/younger-investors-who-receive-ideas-from-tiktok-on-the-rise/ – Corroborates the increasing trend of young investors using TikTok and Reddit for financial advice and investment ideas.
- https://www.cityam.com/use-of-tiktok-and-reddit-for-financial-advice-soars-among-gen-z-and-millennial-investors/ – Supports the rise in the use of TikTok and Reddit among Gen Z and millennials for financial advice and investment ideas.
- https://www.cityam.com/rise-of-the-finfluencers-instagram-facebook-and-reddit-drive-investment-ideas-in-young-people/ – Highlights the role of social media platforms like Instagram, Facebook, and Reddit in providing investment advice to young people.
- https://www.paymentsjournal.com/more-young-adults-get-financial-advice-from-social-media-than-their-bank/ – Confirms that young adults, particularly Gen Z and millennials, are turning to social media for financial advice more than traditional banks.
- https://fintech.global/2021/11/17/social-medias-grip-on-financial-markets-to-persist-hargreaves-lansdown-reports/ – Indicates the persistent influence of social media on financial markets and the trend among young investors to seek advice from these platforms.
- https://www.cityam.com/rise-of-the-finfluencers-instagram-facebook-and-reddit-drive-investment-ideas-in-young-people/ – Discusses the risks associated with taking financial advice from social media influencers who may not have substantial expertise.
- https://www.moneymarketing.co.uk/news/younger-investors-who-receive-ideas-from-tiktok-on-the-rise/ – Mentions the shift away from traditional financial company websites towards social media for financial guidance among younger generations.
- https://www.cityam.com/use-of-tiktok-and-reddit-for-financial-advice-soars-among-gen-z-and-millennial-investors/ – Highlights the preference for social media over traditional sources for financial advice, especially for spending decisions and budgeting.
- https://www.paymentsjournal.com/more-young-adults-get-financial-advice-from-social-media-than-their-bank/ – Notes the challenges and risks associated with relying on social media for financial advice due to the potential for distorted or unrealistic information.
- https://www.cityam.com/rise-of-the-finfluencers-instagram-facebook-and-reddit-drive-investment-ideas-in-young-people/ – Mentions the regulatory efforts by the Financial Conduct Authority (FCA) to ensure the quality and accuracy of financial information shared on social media.
- https://www.moneymarketing.co.uk/news/younger-investors-who-receive-ideas-from-tiktok-on-the-rise/ – Supports the broader shift in how people, especially younger generations, engage with financial information through shared experiences and insights on social media.
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