New research from F&C Investment Trust highlights the significant impact of social media on Gen Z Investors.
With the rise of social media over the past decade, we’ve grown accustomed to social media influencing all areas of our lives. One area that until now has remained largely untouched by social media is our finance and investing habits. Over the course of the pandemic however, the sharing of investment guidance on social media platforms such as TikTok and Instagram has soared, with some investment content generating viewing numbers in the millions.
New research from F&C Investment Trust highlights the hugely influential role social media has played in shaping young people’s investment habits, with 83% of Gen Z investors saying that social media has also influenced their investment decisions, equivalent to 1.4 million young people.
For over a quarter (28%) of investors aged 18-23, social media has prompted the very decision to start investing, while for one in five (20%), social media has encouraged them to invest more money as a result of their engagement with social content. For one in ten (9%) Gen Z investors, social media has gone as far to influence the very stocks and shares they hold by encouraging them to invest in certain companies.
Many of these young people have become habitual followers of such content, with over one in three (37%) Gen Z investors actively engaging with investment-focused content on social media once a day or more.
Rise of social media comes alongside a more positive attitude towards investing from young people
As investment related content has soared across social platforms over the past year, this has come hand in hand with greater engagement and a more positive attitude towards investing from young people. Over one in four (27%) investors have felt more engaged when it comes to investing over the past 12 months, while a similar number feel more empowered (23%) and educated (26%).
Gen Zs yearn for greater investment guidance
Social media often has a greater influence than just piquing the interest of young investors, with many turning to online platforms as a source of investment advice. However, young people are also recognising there is a need for more formal and professional education and guidance.
One in five (18%) Gen Z investors recognise a need for more affordable and investment advice, suggesting that social media is acting as a stopgap solution for many young people in helping to build their financial education in the absence of such advice. One in four (22%) young investors believe this education should take place before or as children reach financial independence, calling for investment to be taught in schools and colleges.
