Young people’s financial planning: Scrolling for savings

• Author:
• Author name

  Quantumrun Foresight
• February 25, 2025

Insight summary

Young people are turning to social media for financial advice, which makes money management more accessible while also exposing them to misleading or overly simplified guidance. As digital financial education grows, traditional banks and financial advisors may need to adjust their strategies, while regulators could consider stricter policies to ensure transparency and consumer protection. This shift could drive investment habits and financial policies, influencing everything from personal wealth-building to how companies and governments approach financial literacy.

Young people’s financial planning context

Young people today are navigating rising inflation, student loan debt, and stagnant wages. Unlike previous generations who learned financial planning from books or formal education, many young consumers now turn to social media platforms such as TikTok and YouTube for financial guidance. A 2023 survey by WallStreetZen found that 76 percent of Gen Z rely on platforms like TikTok (42 percent) and YouTube (27 percent) to learn about budgeting, passive income, and investing. While this shift in learning methods makes financial education more accessible, it also exposes young people to misleading or overly simplified advice that may not always serve their best interests.

Despite the risks of misinformation, many young consumers demonstrate awareness of the limitations of social media-based financial advice. According to the WallStreetZen survey, 83 percent of respondents acknowledged encountering misleading financial content, and 82 percent recognized that short-form videos often oversimplify complex financial topics. Meanwhile, the Chartered Financial Analyst (CFA) Institute found that only 20 percent of investment recommendations made by social media financial influencers, or "finfluencers," included disclosures about potential conflicts of interest. As a result, financial experts urge young investors to verify advice by cross-checking with reputable sources such as the Certified Financial Planner Board of Standards or the US Securities and Exchange Commission.

Social media’s role in financial education is not entirely negative, as it has also expanded access to financial literacy, particularly for marginalized communities. TikTok has provided a platform for personal finance educators, whose content helps underserved demographics gain financial independence. The pandemic accelerated this trend, with a 2022 report by fintech company Plaid revealing that 79 percent of users sought financial education on saving and building credit through fintech apps. 

Disruptive impact

More young people are developing financial habits based on short-form content, which can encourage better savings and investment strategies but also lead to risky decisions. Without professional guidance, some may fall for misleading advice, affecting their ability to build long-term wealth. Additionally, as financial knowledge becomes more accessible, traditional banking and investment firms may need to rethink how they engage younger customers who prefer fast, digital interactions over conventional financial services.

Companies in banking, fintech, and personal finance may focus more on digital-first strategies, such as partnering with financial influencers or creating engaging, educational content. However, firms promoting financial products through social media may face stricter scrutiny, as regulators could demand clearer disclosures to prevent misinformation. Additionally, traditional financial advisory firms may struggle to attract younger clients who prefer free, online advice over paid professional services.

Meanwhile, governments may need to adapt policies to address the long-term effects of digital financial education. Regulators may introduce stricter guidelines for financial influencers to improve transparency and prevent misleading content from spreading. Additionally, policymakers may consider integrating financial literacy programs into school curriculums to reduce reliance on social media for critical financial decisions. If social media remains a key source of financial education, governments may also explore partnerships with fintech firms to promote accurate, responsible financial information.

Implications of young people’s financial planning

Wider implications of young people’s financial planning may include: 

• More people making independent financial decisions at a younger age, leading to earlier investments in assets like stocks, real estate, and retirement funds.
• Financial institutions adapting their business models to focus on digital engagement, reducing the demand for in-person banking and financial advising services.
• Governments increasing financial education requirements in schools to reduce reliance on social media for critical money-related decisions.
• A higher number of individuals turning to non-traditional investments, such as cryptocurrency and alternative assets, increasing market volatility and regulatory challenges.
• Companies hiring more financial content creators and influencers to market financial products, shifting traditional advertising budgets toward social media platforms.
• The rise of decentralized finance applications attracting younger users, potentially leading to less reliance on traditional banks for loans, savings, and investment management.
• Increased political debates over regulating financial influencers, leading to new policies on advertising, disclosures, and consumer protections.
• Lower financial literacy gaps in marginalized communities as social media provides accessible and free financial knowledge to underserved populations.
• A growing gig economy as more young people pursue passive income streams promoted on social media, affecting traditional employment structures and job benefits.
• Rising concerns over financial data privacy as more individuals share their spending habits and investment strategies online, leading to potential cybersecurity risks.

Questions to consider

• How might the financial advice you receive on social media influence your long-term financial habits and security?
• How would you verify the accuracy of financial information before making important investment or budgeting decisions?