62% of Gen Z use social media over advisors for financial advice in 2024, reshaping investing trends

In an era where digital platforms dominate daily life, a striking shift is underway in how younger generations approach financial decision-making. Recent surveys indicate that a significant majority of Generation Z—those born between 1997 and 2012—prefer sourcing financial advice from social media over traditional financial advisors. This trend, highlighted in data from 2024 and extending into 2025, underscores a broader transformation in personal finance, driven by accessibility, relatability, and the allure of peer-driven insights. As Gen Z enters the workforce and begins building wealth, this preference could reshape investment landscapes, advisory services, and even regulatory frameworks.

The Rise of Social Media as a Financial Oracle

Generation Z’s inclination towards social media for financial guidance is not merely a fad but a reflection of their digital-native upbringing. Platforms like TikTok, Instagram, and YouTube have become go-to sources for quick, digestible content on topics ranging from budgeting basics to complex investment strategies. A 2024 PYMNTS Intelligence report revealed that around 79% of millennials and Gen Z consumers turn to these platforms for financial tips, a figure that aligns with ongoing trends into 2025. This shift is propelled by the immediacy of social media, where users can access real-time discussions, viral challenges, and influencer-led tutorials without the barriers of formal consultations.

What makes this trend particularly noteworthy is the contrast with traditional advisory models. Conventional financial advisors often require appointments, fees, and a level of formality that can feel alienating to a generation accustomed to on-demand information. In contrast, social media offers free, bite-sized advice tailored to relatable scenarios—think short videos on “how to invest in stocks with £100” or memes debunking credit card myths. However, this democratisation comes with risks: a Spruce survey from May 2025 noted that most Gen Z individuals have been influenced by online financial trends, yet many lack the tools to discern credible advice from hype.

Key Drivers Behind the Preference

Several factors fuel Gen Z’s pivot to social media. First, trust in institutions has eroded, particularly after economic upheavals like the 2008 financial crisis and the more recent inflationary pressures of the early 2020s. A Forbes Finance Council piece from 2023, still relevant in 2025 discussions, suggested that social media acts as a bridge rather than a barrier, fostering connections through authentic storytelling. Gen Z values transparency and community, qualities abundant in user-generated content but sometimes scarce in polished advisory pitches.

Second, the economic realities facing this cohort amplify the appeal. With rising living costs and stagnant wages, many in Gen Z are grappling with financial dissatisfaction. A USA Today article from August 2025 highlighted that a majority of Gen Z are stepping off parental support but feel overwhelmed by income levels and expenses. Social media provides low-barrier entry points to financial literacy, such as budgeting apps promoted via influencers or entrepreneurial tips on platforms like Medium, where a July 2025 post detailed how Gen Z is redefining personal finance through digital tools and habits.

Third, the gamification of finance on these platforms adds an engaging layer. Hashtags like #ForexTrader have amassed billions of views by July 2025, as per a DIY Investor report, often portraying trading as an exciting path to quick wealth. This contrasts sharply with the cautious, long-term strategies espoused by traditional advisors, appealing to a generation seeking rapid empowerment amid economic uncertainty.

Implications for Investors and Markets

This behavioural shift has profound implications for financial markets and investment strategies. As Gen Z increasingly directs their capital based on social media insights, we may see heightened volatility in certain asset classes. For instance, the rise of “finfluencers”—influencers specialising in finance—has been linked to surges in retail trading, reminiscent of the 2021 GameStop frenzy. A World Economic Forum analysis from 2022 estimated the finfluencer market at $104 billion, a figure likely grown by 2025 given the proliferation of content creators.

From an investor’s perspective, this trend signals opportunities in fintech and social media stocks. Companies enabling user-friendly investment platforms could benefit, as Gen Z’s habits drive demand for seamless, app-based tools. Analyst models from firms like Morningstar project that by 2030, digital-native investors could account for 40% of global retail assets under management, assuming current trends persist. However, this forecast is labelled as model-based and hinges on regulatory stability.

On the flip side, risks abound. Sentiment from credible sources, such as a 2025 ID Times report on Gen Z social media habits, indicates a growing awareness of deceptive trends, like overhyped forex schemes on TikTok. Regulatory bodies, including the UK’s Financial Conduct Authority, have issued warnings about unverified advice, with investor sentiment marked as cautious in recent FCA updates. A Medium article from July 2025 warned that while Gen Z is redefining finance with a focus on entrepreneurship and stability, misinformation could lead to substantial losses—echoing findings where 55% of those following social tips reported setbacks.

Navigating the Risks: A Balanced Approach

To mitigate these dangers, blending social media insights with professional validation is crucial. Traditional advisors are adapting by incorporating digital elements, such as hybrid models that use apps for initial engagement. A 2025 Attest research on Gen Z media consumption predicted a decline in traditional channels, urging brands and advisors to adapt through authentic social presence.

• Educational Integration: Schools and workplaces could embed financial literacy modules that critique social media content, fostering critical thinking.
• Regulatory Evolution: Enhanced disclosure rules for finfluencers, as seen in evolving EU guidelines, could curb misleading advice.
• Investment Strategies: For Gen Z investors, diversifying beyond viral trends—into stable assets like index funds—remains a prudent path, per historical data from Vanguard’s multi-year studies showing superior long-term returns.

In essence, while social media empowers Gen Z with accessible knowledge, it demands discernment. As this generation’s financial footprint grows, markets will likely reward innovations that bridge digital allure with sound principles.

Future Outlook: Analyst Projections

Looking ahead, analyst-led forecasts suggest that by 2028, social media’s influence on financial decisions could encompass 50% of under-30 investors globally, based on extrapolation from 2024 PYMNTS data. This assumes continued platform growth and no major regulatory crackdowns. Investor sentiment, as gauged by verified sources like the NYSSCPA in October 2024, remains optimistic about digital adaptation but wary of unchecked speculation.

Ultimately, the trend illuminates a generational divide that savvy investors can navigate by monitoring fintech disruptions and advocating for informed digital literacy. As Gen Z redefines success through financial stability and entrepreneurship—per a recent AInvest report—the financial world must evolve or risk obsolescence.

References

• Burba, A. (2024). Gen Z trusts social media for financial advice more than any other generation. Inc. https://www.inc.com/annabel-burba/gen-z-trusts-social-media-for-financial-advice-more-than-any-other-generation/91189521
• PYMNTS. (2024). 79% of millennials and Gen Z turn to social media for financial advice. https://www.pymnts.com/consumer-finance/2024/79percent-of-millennials-and-gen-z-turn-to-social-media-for-financial-advice/
• ID Times. (2025). Gen Z social media habits. https://id-times.com/news/industry-analysis-lists/gen-z-social-media-2025/
• Attest. (2025). Gen Z media consumption. https://www.askattest.com/blog/research/gen-z-media-consumption
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• World Economic Forum. (2022). Finfluencer trends. https://www.weforum.org/stories/2022/08/finfluencer-gen-z-financial-advice/
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• DIY Investor. (2025). Deceptive TikTok trends shaping Gen Z’s financial culture. https://www.diyinvestor.net/deceptive-tiktok-trends-that-shape-gen-zs-financial-culture/
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