Today more than ever, young people are turning to the Internet and social media to gain new knowledge on a variety of topics, including personal finance issues.
In April 2021, we surveyed Gen Z and Gen Y investors to learn more about the tools they use to learn more about investing and how they invest. The results show that 91% of Gen Z (ages 18-24) use social media for investment advice. This is more than any other source of knowledge on the subject, including:
- Other sources, such as friends and family, podcasts, traditional investment sites, other (67%)
- Television and newspapers (34%)
- Blogs (25%)
Read on to see why Gen Z gets their investing tips from social media:
One email a day could help you save thousands
Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
When it comes to investment advice, here are the popular sources of social media content Gen Z uses the most:
- YouTube videos (71%)
- Reddit Forums (42%)
- TikTok Videos (36%)
- Twitter posts (32%)
- Facebook groups and posts (28%)
- Instagram posts (27%)
Given that 18-24 year olds use social media in so many aspects of their daily lives, it’s no surprise that they turn to social media for information on investing. But what are the other reasons why it could be?
The Ascent’s Picks for Top Online Stock Brokers
Find the best stock broker for you from these top picks. Whether you’re looking for a special sign-up offer, exceptional customer support, $ 0 commissions, intuitive mobile apps, or more, you’ll find a broker who will meet your trading needs.
See the selections
Here are some ideas:
1. Social media content can be more relevant
Young people may find that they can relate to the news and advice they watch or read when the message is from people of the same age and with similar experiences. They can spend time browsing the content to find what they relate to the most.
For many, social media content may seem more relevant because they feel like they are part of a community. They can consume information, while intervening and sharing their experiences and thoughts. They may feel like they are learning more because it is a collaborative experience. This kind of participation is not possible when you read about investing in a book or newspaper.
2. It’s easier to digest chunks of content at a time
When it comes to social media content, it’s often broken down into smaller pieces of information. It can be easier to digest, especially when it comes to investing knowledge, which can take time to learn.
3. Social media content is entertaining
Much of social media content is based on photos or videos. It can be more fun to watch rather than reading a long written explanation of how to invest. When we looked at our survey results, we found that video content was a popular choice among young investors, especially when it came to Youtube videos.
As mentioned above, 71% of Gen Z use Youtube for investing information. The entertaining aspect of these videos is likely to keep them coming back for more knowledge.
4. Social media offers a variety of content that can be consumed on the go
Social media is convenient because it can be used anywhere. Gen Z may prefer to consume investment advice through social media because they can do it on the go. Young people are busy and often on the move.
Buy your first shares: do it smart
Once you have chosen one of our top rated brokers, you should make sure that you are purchasing the righteous actions. We believe there is no better place to start than with Equity advisor, our company’s flagship stock selection service, The Motley Fool. You’ll get two new stock picks each month, along with 10 Starter Stocks and Best Buys Now. Over the past 17 years, Stock Advisor’s average stock selection has returned 590%, more than 4 times that of the S&P 500! (as of 07/19/2021). Learn more and start today with a special discount for new members.
With the use of their phones, they can easily open apps throughout the day. They can also visit a mix of social media platforms to consume content. In our survey, we found that young investors preferred to use a variety of apps rather than just one social media app or source.
Here are two data points that help prove this theory:
- Thirteen apps were used by at least 10% of Gen Z and Millennials
- No app was used by more than 37% of young investors
No matter how Gen Z chooses to acquire their investing knowledge, it’s clear that they prioritize learning about saving for the future.
If you want to learn more about investing and aren’t sure where to start, we have plenty of resources to help you. If you’re new, be sure to check out our beginner’s guide to brokerage houses before investing in the stock market.