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In brief
- Nearly two out of three respondents said they had logged on to social media platforms to seek financial advice.
- The ASIC says financial information on social media and accessed through AI tools can be incomplete, promotional or misleading.
Young adults are increasingly turning to social media and artificial intelligence for guidance on financial investments, with a significant portion placing their trust in these digital sources.
A recent study conducted by the Australian Securities and Investments Commission (ASIC) reveals that 56% of Gen Z individuals (aged 18 to 28) have at least some level of trust in the financial information they find on social media platforms.
The survey highlights that nearly 63% of participants have actively used social media to seek out financial advice.
This poll, involving 1,227 young respondents, indicates that 30% watch YouTube videos for financial guidance, while 18% turn to artificial intelligence tools for advice on managing their finances.
Additionally, more than half of those surveyed, 52%, express trust in “finfluencers”—or financial influencers—while 64% feel confident in AI-driven platforms for their financial decisions.
Using social media for financial advice was a risk, ASIC commissioner Alan Kirkland warned.
“Financial information on social media and accessed through AI tools can be incomplete, promotional or misleading,” he said.
“While gen Z value credibility when seeking financial advice, the information they see most often is shaped by algorithms that are designed to drive clicks and views rather than providing accurate information.”
The study found gen Z also had a strong appetite for reputable and trustworthy financial content, with 60 per cent reporting they used formal or professional sources.
But their personal research often led them down a virtual rabbit hole of unreliable accounts designed for engagement rather than accuracy.
Almost one in four members of gen Z own cryptocurrency at 23 per cent, and of these individuals, 66 per cent take a short-term speculative approach to at least some of their crypto investment.
But nearly a third — 29 per cent — said they trade based on social media and influencer content or recommendations.
The financial watchdog said that strategy set unrealistic expectations about returns, price volatility and the realities of long-term investing.
ASIC reminded those in that cohort wanting to invest wisely to access free, reliable and independent guidance through the government’s Moneysmart website.
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