Financial advisers need to be on social media to reach millennials and Gen Z

| 14 May 2024

Financial advisers should leverage social media to connect with millennials and Gen Z, as new research indicates they are twice as likely to get financial advice online than from a professional, says financial counselor Myles Ma.

“Advisers need to be where their clients are, and for these younger generations, that’s on social media,” said Mr Ma, a certified personal financial counselor at Policygenius. 

He noted that the willingness of younger generations to try popular “financial hack” trends from social media, and their openness to non-traditional financial assets, indicates they are interested in financial advice. However, he suggested that this should prompt advisors to incorporate more education on the fundamentals of financial planning and investing. 

“It’s clear these groups are still interested in professional financial advice. No matter the generation, the most popular place to turn first for financial advice was financial professionals,” Ma said.

According to the Policygenius 2024 Financial Planning Survey, 62% of millennials (ages 27-24) and Gen Z (ages 18-26) have tried social media “finance hack” trends.

In comparison, just 36% of older generations said they have tried these methods.

“It’s clear they’re interested in finding ways to make their budgets stretch,” Mr Ma said. 

However, the percentage of millennials and Gen Z who first turned to a professional for financial advice was far lower than older ages. 

Thirty-nine percent of baby boomers and 27% of Gen X said they would first turn to a financial professional if they had questions about their finances. In comparison, just 18% of millennials and an even lower 15% of Gen Z said the same.  These younger generations were far more likely to turn to their parents or to online for financial advice than the older generations were, with Gen Z being the most likely age group to get financial advice online. 

“Advisers should establish a strong presence on platforms like Instagram, YouTube and TikTok, creating content that addresses common financial concerns for millennials and Gen Z and introducing financial concepts in easy-to-digest ways. They may also want to partner with influencers who are popular with these demographics,” he said, reported InsuranceNewsNet.