Younger Americans get financial advice from social media: Survey
Finance experts warn financial social media content often lacks credibility and isn't accurate.
Story at a glance
- A survey conducted by Prolific, a market research company, found that 79% of millennials and Gen Zers have gotten financial advice from social media.
- "Sixty-three percent of the advice on stocks on TikTok is misleading, so do not follow that," said Pattie Ehsaei, a finance expert and host of the “No Romance Without Finance” podcast.
- A Deloitte survey found that 30% of Gen Zers and 32% of millennials feel "financially insecure," with over half of both groups living paycheck to paycheck.
(NewsNation) — Gen Zers and millennials are turning to social media apps not just for the latest news and trends but also for financial advice.
A survey conducted by Prolific, a market research company, found that 79% of millennials and Gen Zers have gotten financial advice from social media.
Pattie Ehsaei, a finance expert and host of the “No Romance Without Finance” podcast, said Monday on "Morning in America" that consumers need to be cautious because a lot of people offer advice without credentials or a financial background.
"I think the topics that people should be wary of is advice specifically on stocks — what stocks to buy, what stocks not to buy. Sixty-three percent of the advice on stocks on TikTok is misleading, so do not follow that," Ehsaei said. "No one can predict the market, period, OK? The market cannot be predicted. So, you need to buy ETFs and unify index funds and just let it ride."
A Deloitte survey found that 30% of Gen Zers and 32% of millennials feel "financially insecure," with over half of both groups living paycheck to paycheck.
Ehsaei advises consumers to create a budget or get a side hustle to help make ends meet.
"It is easier now than ever to get a side hustle with ride-shares, or you can even do data entry at home. So, anything you can do to get that extra money to invest for your future is going to make you feel more secure," she said.