62% of Gen Z use Instagram and TikTok for financial advice in 2025, doubling general population’s 36%

In an era where digital platforms dominate daily life, a striking trend has emerged among younger generations: a significant reliance on social media for financial guidance. Data indicates that a substantial portion of Generation Z—those born roughly between 1997 and 2012—turns to apps like Instagram and TikTok for advice on everything from budgeting to investing, far outpacing the broader population. This shift not only reflects evolving information consumption habits but also raises questions about the quality and reliability of such sources in shaping long-term financial decisions.

The Rise of Social Media as a Financial Advisor

Recent surveys highlight a clear generational divide in how people seek financial information. While traditional channels like banks, financial advisors, or established media retain influence among older demographics, Gen Z shows a marked preference for user-generated content on social platforms. For instance, reports suggest that around 79% of millennials and Gen Z consumers look to social media for financial insights, a figure that underscores the platforms’ role as accessible, bite-sized knowledge hubs. This trend is driven by the immediacy and relatability of content creators, often dubbed “finfluencers”, who deliver tips in engaging formats like short videos or infographics.

The appeal lies in the democratisation of financial education. Platforms such as TikTok and Instagram offer free, on-demand advice that feels tailored to young audiences facing unique economic pressures, including student debt, gig economy instability, and soaring living costs. Unlike formal advisory services, which can come with fees or require appointments, social media provides instant gratification. However, this convenience comes with caveats. Analysts note that while these platforms empower users with basic knowledge, they often lack the depth and verification found in professional advice.

Key Statistics and Generational Comparisons

To contextualise this phenomenon, consider broader data points from industry studies. A 2024 report from PYMNTS Intelligence revealed that eight in ten millennial and Gen Z consumers consult social media for financial advisers, a habit that contrasts sharply with older generations’ reliance on certified professionals. Similarly, a Spruce survey from earlier in 2025 indicated that most Gen Z individuals have been influenced by online financial trends, with platforms like TikTok and YouTube serving as primary learning tools for personal finance.

Comparatively, the general population shows more caution. Only about a third reportedly seek financial advice from social media, preferring established institutions. This gap illustrates a broader cultural shift: Gen Z, having grown up with smartphones and algorithms curating their feeds, views social media as a natural extension of education. Yet, drawbacks are evident. A Wall Street Zen analysis points out that while 76% of Gen Z learns about money through TikTok and YouTube, the content can be riddled with misinformation, potentially leading to poor financial choices.

Implications for Financial Literacy and Risk

The implications of this trend extend beyond mere preference. Financial literacy among Gen Z remains a concern, with only 38% deemed financially literate according to some expert assessments. Social media fills this void but often with unvetted advice. For example, trends like “soft saving”—prioritising experiences over traditional milestones such as homeownership—have gained traction on these platforms, reflecting values aligned with work-life balance but potentially undermining long-term wealth building.

Experts warn of inherent risks. Deceptive trends, as highlighted in recent analyses, can blur wisdom and misinformation. A Benzinga report from August 2025 notes that while Gen Z has unprecedented access to data via social media, the lack of context can lead to misguided actions. Certified financial planners emphasise that TikTok videos might promote high-risk strategies, such as speculative investing in cryptocurrencies or meme stocks, without disclosing potential downsides.

From an investor’s perspective, this reliance could influence market dynamics. If a large cohort of young people acts on viral advice, it might amplify volatility in certain assets. Historical parallels include the 2021 GameStop saga, where social media-driven enthusiasm led to dramatic price swings. Analyst models suggest that as Gen Z enters peak earning years, their social-media-influenced behaviours could reshape sectors like fintech and digital banking, with companies adapting to offer more integrated, app-based advisory tools.

Potential Benefits and Evolving Tools

Despite the pitfalls, there are upsides. Social media has democratised access to financial education, particularly for underbanked communities. Influencers like those featured in Federal Reserve Bank discussions focus on empowering minorities with knowledge on credit, debt, and consumer laws. Platforms are evolving too, with features like Instagram Reels and TikTok’s educational hashtags promoting verified content.

Future trends point towards more personalised financial tools. As noted in a 2024 Kansas City Federal Reserve briefing, apps and social features will likely become hyper-customised, blending convenience with safeguards against fraud. For Gen Z, this could mean hybrid models where social insights complement professional advice, potentially boosting overall literacy rates.

Analyst Forecasts and Market Sentiment

Looking ahead, analyst-led forecasts from firms like Deloitte predict that social media’s influence on finance will grow, with Gen Z driving demand for user-centric fintech innovations. By 2030, models estimate that digital-native advice could capture 50% of the under-30 market, pressuring traditional advisors to digitise. Market sentiment, as gauged by credible sources like Forbes Advisor surveys, remains cautiously optimistic: while 80% of young users value social input, there’s growing awareness of the need for verification.

Investor sentiment from verified financial outlets, such as Inc. magazine reports, labels this trend as a double-edged sword—innovative yet risky. To mitigate downsides, regulators may impose stricter guidelines on finfluencers, similar to advertising standards in other sectors.

Strategies for Navigating the Trend

• Verify Sources: Cross-check social media tips against reputable sites like government financial portals or established banks.
• Diversify Learning: Combine platform content with formal education, such as online courses from certified institutions.
• Focus on Fundamentals: Prioritise core topics like budgeting and debt management over trendy hacks.
• Monitor Risks: Be wary of advice promoting quick riches, which often overlooks market volatility.

In summary, the surge in Gen Z’s use of social media for financial advice signals a paradigm shift towards accessible, engaging education. While it empowers a generation, it demands vigilance to ensure advice translates into sound decisions. As of 12 August 2025, this trend continues to evolve, promising both opportunities and challenges for the financial landscape.

References

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