While social media can have positive financial influence, the overwhelming risks signal a greater need for professional advice as Australians continue to seek financial education on social media.
According to ING, more than 2.25 million Gen Z Australians are getting their financial advice or information from social media, far exceeding the 1.2 million who are accessing a financial adviser.
Financial content on social media has become so prevalent now that 49 per cent of all Australians have admitted social media has had a direct influence on their purchasing decisions at some stage and some 8.9 million (41 per cent) are actively following financial content online.
The Gen Z generation are the most at risk, ING said, finding that Gen Z are the most likely generation to use social media for financial advice (40 per cent) and follow ‘finfluencers’ (28 per cent), and 16 per cent said they had acted on the advice they found online.
Millennials were only slightly less likely to turn to social media for advice with just under a third (31 per cent) admitting to doing so, followed by Gen X (11 per cent) and Baby Boomers (2 per cent).
The high cost of professional advice has proven the most challenging barrier for Australians wanting to access advice, driving many to social media in search of guidance.
Part of the issue with this, ING said, is social media platforms often amplify financial anxieties and create unrealistic expectations of what the guidance from finfluencers can help them achieve.
This is particularly true for Gen Z with 38 per cent saying they feel “constant pressure” to be financially successful, while one in five (21 per cent) find themselves regularly comparing their financial journey with curated social media posts and 15 per cent feeling pressure to pursue a side hustle.
It is important to note that social media can have positive traits as ING suggests open discussions about finances online can foster important conversations often missing from school or family homes.
“This engagement helps demystify financial concepts that were once the exclusive domain of professionals,” ING said.
Head of consumer and market insights at ING, Matt Bowen, said it is clear social media is playing a significant role in shaping Australians’ financial decisions, particularly for the younger generation, making it increasingly important that there is access reliable financial information online for those who want it.
“While digital channels open vital conversations and introduce valuable budgeting concepts, they can also expose young people to aspirational content that can amplify unrealistic expectations, high-risk trends, and financial comparison,” Bowen said.
“At ING, we believe financial education should be accessible to everyone. We want to facilitate these essential conversations and demystify money topics, helping Australians of all ages, particularly young Aussies, navigate the complexities of digital financial content with confidence and critical thinking.”
