Sunday, November 24African Digital Business Magazine

The rise of fin-fluencers: Gen Z turn to social media for share trading advice

  • One in five Gen Zers (21%) go to social media for investing advice.
  • Older generations prefer online news and blogs for trading tips.
  • Just 3% of South Africans use a Certified Financial Planner.
  • Commentary from Finder.com’s investment editor Kylie Purcell.

Social media is the go-to source for share trading advice among young adults in South Africa, according to Finder.com’s Financial Planner Statistics.

Finder’s survey of 1,201 South African adults found that 21% of those aged 18-24 turn to social media sites like Instagram and TikTok for their share trading advice.

In fact, Gen Z are more than twice as likely to get trading advice from social media sites like Instagram and TikTok than any other age group.

However older generations are still looking online for trading tips, but they prefer blogs and news sites over social media apps. In fact, news sites are the preferred source for trading tips among those aged 25-34 (17%), 35-44 (12%), 45-54 (14%) and 55-64 (10%).

Meanwhile, those aged 65+ are the only group to prefer receiving advice from family and friends, with 11% getting investing advice this way.

One thing all generations have in common – they rarely turn to a Certified Financial Planner for their financial advice, with just 3% of South Africans using a CFP.

Investment editor at Finder.com, Kylie Purcell, says she isn’t surprised by the high number of young South Africans turning to social media for their share trading advice.

“Gen Z grew up alongside the internet, and most have been exposed to social media for a large chunk of their lives.

“Some studies have even shown that Gen Z are using social media like TikTok and Instagram for search instead of Google; so it makes sense that these platforms are also where they turn to for trading advice.”

However, Purcell adds that although it’s great that investing information is more accessible than ever, it’s important to check the credibility of the people they’re getting advice from.

“Social media is filled with personalities who claim they know the best stocks to invest in or the quickest way to grow your money fast – but chances are, not a lot of these “finfluencers” have had formal financial training,”

“Many finfluencers actually get kickbacks from the products or stocks their promoting or they’re trying to sell something themselves, such as an online course, so take any ‘advice’ with a grain of salt.”

“It’s important to consult a variety of other sources, including licensed professionals, before acting on any tips you find online.”

You can view the full report here: https://www.finder.com/za/financial-planner-statistics

Photo credit: Tracy Le Blanc (Pexels.com)