33% of Gen Zs investing their money rely on social media for information

Social media has become a powerful platform for content with billions of people using social feeds to learn new skills; from baking to investing. 

But how do you know the information you’re consuming is correct? This is especially important with a subject like investing, as it comes with significant risks. 

We recently surveyed* people in the UK about investing and found that 33% of respondents aged 18-24, who are currently investing, are primarily relying on social media for information and research. This is compared to 7% of respondents aged 55 and over who said the same.

Interestingly, for the Gen Zs that are not investing, 25% of respondents said the main reason preventing them from investing so far was lack of knowledge. 

And of course, knowledge is power. 

But even though those surveyed in this demographic might be concerned about the gaps in their understanding, they are aware of the risks involved. 

Investing money has the potential to generate greater returns than a traditional savings account, but it also puts your capital at risk and you could get less back than you originally invested. 

Gen Zs are aware of these risks as 53% said they felt uncomfortable about the idea of taking investment risks, but if they did take the leap - 31% said they would hope to fund major expenses like a house deposit or further education. 

The survey also highlighted that Gen Zs are aware investing is not a quick fix and it will take time to understand. On average, respondents not currently investing aged 18-24, would be willing to spend up to five hours on a regular basis dedicated to learning and managing their investments.

But, on the flip side, respondents who are currently investing in younger age categories are more likely to have experienced a significant financial loss, with more than 44% of 25-34 year olds having experienced significant financial loss compared to 25% of respondents aged 55 or over. 

So, it’s important to understand all the facts when considering investing. Learning before taking action is essential, and if Gen Zs are turning to social media, there are steps they can take to ensure they are getting the right information. 

Firstly, consider social media as just the starting point for your investing research. Be inspired and then delve deeper into the topic by reading books or comparing information from big banks, like Barclays or NatWest. You can also look closer to home at your own bank as they may offer investing advice based on your circumstances and financial goals. 

Next, always double check the source of the information and use multiple sources for assurance. Look at the content and ask: Who is talking to you and what is their background? This will help you to understand whether the content is trustworthy or not. Plus, if it sounds too good to be true, it probably is.

And remember, everyone’s financial situation is different, so what has worked for someone else might not work for you. That’s why it’s a good idea to consult with a financial adviser as they can offer personalised support and steer you in the right direction. 

For more information about investing, from investment ISAs to share dealing, money.co.uk has a variety of guides on this subject. 

*Survey about investing conducted by Censuswide on behalf of money.co.uk - 2003 respondents from the UK aged 18 and over. This survey was conducted in February 2024.