Social media is a primary source of financial guidance for younger audiences looking to take control of their money, new figures show.
Research from ING has revealed that nearly half of all Australians (49 per cent) admit social media has directly influenced their purchasing decisions in the past, with 41 per cent or 8.9 million Australians actively following financial content.
For younger Australians, this trend is even more pronounced, with Gen Z being the most likely generation (40 per cent) more than Millennials (31 per cent), Gen X (11 per cent) and Baby Boomers (2 per cent) to use social media for financial advice or information, and follow ‘finfluencers’ (28 per cent) – with 16 per cent having even acted on their advice.
Over 2.25m Gen Z Aussies get their financial advice or information from social media, rivalling traditional methods like financial advisors (1.4m), parents or relatives (2.2m) and friends (1.9m).
ING Head of Consumer and Market Insights Matt Bowen commented that the research clearly shows that social media has become an undeniable force in shaping how Australians, especially younger generations, engage with money.
“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 added.
“This pervasive digital influence presents a real tension and highlights a significant gap in financial literacy and learning opportunities for younger Aussies, with a huge volume of people seeking free and accessible financial content.”
On the other hand, social media has democratised access to financial information, fostering conversations often absent from traditional schooling or family homes. The findings showed social media has unlocked practical money-saving strategies for young Aussies, like ‘de-influencing’ (13 per cent of Gen Z), ‘subscription audits’ (21 per cent of Gen Z), the ’48-hour rule’ (16 per cent), and ‘loud budgeting’ (15 per cent). This engagement helps demystify financial concepts that were once the exclusive domain of professionals.
Simultaneously, these platforms amplify financial anxieties and unrealistic expectations. A significant 38 per cent of Gen Z feel constant pressure to be financially successful, with 21 per cent regularly comparing their financial journey to curated online portrayal, and 15 per cent of Aussies even feel pressured to pursue side hustles they’d rather avoid.
Bowen offered the following suggestions for those navigating the digital financial landscape:
Verify Credibility - Always question the source. Does the ‘finfluencer’ hold relevant credentials or qualifications? Are they licensed or authorised to provide financial product advice? Do they disclose conflicts of interest?
Look Beyond the Hype - Be wary of “get rich quick” schemes. Sustainable growth is built on sound principles, not instant gratification.
Cross-Reference and Research - Never rely on a single source. Validate information with multiple reputable and independent sources.
Understand Your Personal Goals - Filter advice through your own financial situation, risk tolerance, and long-term objectives. What works for one person may not work for you.
Distinguish Entertainment from Advice - Recognise that much social media content is engaging entertainment, not comprehensive financial planning.
Know When to Seek Professional Help - Social media is not a substitute for personalised financial advice. Consult a qualified, independent financial advisor for complex decisions.