Young people are turning to social media influencers before financial advisers for help on money matters, a conference heard.
Market research from Savanta found just 20 per cent said they would use a financial adviser, with 47 per cent saying they would first go to a family and 41 per cent saying social media was their first choice.
A panel of 19-23 year olds spoke on at the annual Defaqto conference on September 7.
They gave financial services professionals an insight into what is important for Gen Z, which spans those born between 1996 and 2010.
The four young people on the panel said they simply didn't have the disposable income to think about investing at this point in their lives but hoped to do so in the next 10 years.
One said: “I see financial services as not so much being aimed at me, I see it as something that is aimed at my dad or mum.
“Gen Z is seen as a poor generation, just not having that income for it to be necessary [to access financial services].”
They told advisers social media is where they would look for financial advice, with one citing forum website Reddit.
Another said financial services need to make the case for their products on apps like TikTok but warned against boring adverts which don't state the benefits straight away.
The idea of investing is becoming more popular according to the young people - partly put down to the idea of having a “passive income” in a challenging and changeable financial market.
Savanta director Kathy Ellison said the company's research confirmed young people were heading online to learn about finance, particularly to video content.
She said: “They cite influencers and people on Fintok [financial content on TikTok]. It is video that is their media of choice and 24 seconds is the sort of video their are willing to watch.
“Gen Z are growing up in a complicated time. There is a great opportunity for us to advise in the right setting.
"Many of them have savings and want to invest - It might be the time to encourage them to invest.”
tara.o'connor@ft.com
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