Gen Z investors, born from 1997 through 2012, are increasingly turning to unconventional sources of financial advice and information. The recent joint study released by the FINRA Foundation and the CFA Institute reveals that only 30% of Gen Z investors sought guidance from financial professionals, which is notably lower compared to the reliance on social media, internet searches, and family members.
The data suggests that Gen Z investors are leveraging the power of social media platforms as well as the vast information available on the internet to educate themselves about investing. Social media, with its ability to connect individuals and share insights, has become a significant influencer in shaping their investment decisions. Meanwhile, the accessibility and convenience of conducting internet searches offer Gen Z investors a wealth of information and perspectives at their fingertips.
The study also highlights the enduring influence of family members on the financial decision-making of Gen Z investors. Given that a substantial percentage of respondents cite family as a source of financial advice, it reveals that familial relationships play a crucial role in shaping their investment behaviors and attitudes.
While the reliance on social media and family for financial advice can provide valuable insights, it is important for Gen Z investors to exercise caution and critical thinking. The abundance of information online, including on social media platforms, can be both a blessing and a challenge, as it requires careful discernment to separate reliable sources from misinformation or biased opinions.
Find this topic and more in a recent episode of Fred Barstein’s Real Talk on www.Wealthmanagement.com
