Gen Z’s Risky Reliance on Social Media for Financial Advice

A growing number of young Australians are turning to social media and artificial intelligence (AI) for financial guidance, raising concerns about the quality and reliability of the information they receive. A recent survey by the Australian Securities and Investments Commission (ASIC) reveals a significant trend: over two-thirds of Gen Z are using these platforms to create investment decisions.

Trust in Untraditional Sources

The ASIC study, conducted in March 2026, found that 63% of Gen Z individuals utilize social media platforms for financial advice. 56% report trusting the financial information they encounter on these platforms. The survey, commissioned by YouGov and encompassing 1,227 young Australians, also highlighted the increasing reliance on newer technologies, with 30% consulting YouTube videos and 18% using AI tools for financial guidance.

Concerns from ASIC

ASIC Commissioner Alan Kirkland has warned about the inherent risks of relying on social media and AI for financial advice. He cautioned that the information found on these platforms can be “incomplete, promotional or misleading.” Kirkland emphasized that algorithms prioritize engagement—clicks and views—over accuracy, potentially leading young investors astray.

The Appeal of ‘Finfluencers’ and AI

Despite the risks, a substantial portion of Gen Z expresses trust in “finfluencers” (financial influencers), with 52% reporting some level of trust. Even more—64%—place their faith in AI platforms. This suggests a preference for readily accessible, often personalized, financial information, even if its source is unverified.

Cryptocurrency and Speculative Investment

The trend towards social media-driven financial decisions is particularly pronounced in the realm of cryptocurrency. Approximately 23% of Gen Z Australians own cryptocurrency, and a concerning 66% of these investors adopt a short-term, speculative approach. Nearly a third (29%) admit to making trading decisions based on content and recommendations from social media influencers.

The Importance of Reputable Sources

While Gen Z demonstrates a willingness to seek financial information from various sources, 60% still report utilizing formal or professional sources. ASIC encourages young investors to complement information from influencers and AI with guidance from reputable and evidence-based resources, such as the MoneySmart website.

Key Takeaways

• Over 60% of Gen Z are using social media for financial advice.
• More than half trust financial information from “finfluencers” and AI platforms.
• A significant portion of young crypto investors base decisions on social media recommendations.
• ASIC warns about the risks of incomplete, misleading, or promotional content online.
• Young investors are encouraged to use reputable sources like ASIC’s MoneySmart.