Here’s why Gen Z gets their investing tips from social media

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:

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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?

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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.

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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.

About Abraham Vernon

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