Young Americans turn to social media for financial advice
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Diverging Reports Breakdown
Gen Z Financial Literacy: Younger Americans Face Uncertainty but Are More Proactive in Seeking Financial Advice
In April 2023, 36% of Gen Z adults said they were ‘very’ financially literate, surpassing all other generations. Gen Z is less likely than the Gen Pop to say they manage finances well — but half still feel confident in their money skills. Young adults are putting more of their paycheck into savings, but the picture isn’t all positive. Adults 18 to 29 are most likely to set aside between 6% and 10% of their earnings, while the general population is more likely to save between 1% and 5%. And while a growing number of Americans—regardless of age—have reported saving 0% of. their paycheck since 2023,. Gen Z are five percentage points less likely to fall into that category. Discover more data.Use this data like this to understand Gen Z’s evolving saving habits and drive their real-time engagement and engagement with financial advice. The main barriers for Gen Z to financial advice are cost and distrust. The general population cites lack of funds, while Gen Z cites a lack of interest.
As Financial Literacy Month unfolds this April, CivicScience is taking a closer look at Gen Z — a tech-savvy generation coming of age in a time of economic uncertainty. Their approach to budgeting, investing, and financial planning reflects the challenges of today’s economy and points to long-term shifts in how Americans may build and manage wealth.
Here are five key insights on Gen Z investing and budgeting in 2025:
1. Gen Z is losing confidence in their financial literacy.
When it comes to personal finances—like budgeting, saving, and investing—Gen Z adults aged 18 to 29 are now the least likely to say they’re ‘very’ financially literate (excluding those who answered ‘I don’t know’). One-quarter of this age group expresses strong confidence in their financial knowledge, at least four percentage points lower than older generations. This marks a notable shift from two years ago – in April 2023, 36% of Gen Z adults said they were ‘very’ financially literate, surpassing all other generations. This could be a sign that economic challenges, such as inflation, student debt, or rising living costs, are making younger adults more aware of gaps in their financial understanding—or more cautious in how they rate their own skills.
However, it’s worth noting that over the last two years, Gen Z was the most likely age group to say they’re ‘not at all’ financially literate—a figure that increased from 12% to 18%.
2. Gen Z is less likely than the Gen Pop to say they manage finances well — but half still feel confident in their money skills.
Compared to the Gen Pop, Gen Z adults aged 18–29 are consistently less likely to say they manage their money ‘well.’ Between 57% and 62% of the Gen Pop report managing their finances ‘well’ over the past four years, that figure, however, remains notably lower—between 43% and 50%—among Gen Z. That said though, the percentage of Gen Z who manage their finances ‘well’ is at a high of 50%.
Gen Z is also more likely than the general population to rate their money management as ‘badly,’ though that share has declined slightly over time, recently dipping below 17%. In contrast, the general population has remained relatively steady in the 12%–14% range. Neutral responses are also more common among Gen Z, suggesting younger adults may feel less confident or more uncertain about their financial skills than the broader population.
Join the Conversation: How would you describe your personal money management skills?
3. Gen Z has different investment priorities.
Growing up in the digital age, it’s no surprise that Gen Z approaches investing differently than the Gen Pop. While traditional investments like savings accounts, retirement funds, mutual funds, and stocks or bonds are still the most common across the general population—including Gen Z—young adults are more likely to put their money into cryptocurrency and gold or silver. This suggests a stronger interest in often more volatile assets—possibly driven by digital accessibility, skepticism toward traditional financial institutions, or a desire for quicker returns.
4. Young adults are putting more of their paycheck into savings, but the picture isn’t all positive.
At the same time, Gen Z appears to be more intentional about saving, even as their investment strategies diverge from the Gen Pop. Adults aged 18 to 29 are most likely to set aside between 6% and 10% of their earnings, while the general population is more likely to save between 1% and 5%. And while a growing number of Americans—regardless of age—have reported saving 0% of their paycheck since 2023, Gen Z is five percentage points less likely than the general population to fall into that category. Interestingly, Gen Z and the general population are equally likely to save more than 10%, indicating a split within the generation—some young adults are prioritizing savings despite financial pressures, while others may be struggling to set anything aside.
Use this Data: CivicScience clients use data like this to understand Gen Z’s evolving saving habits and monitor shifts in financial sentiment in real-time, allowing them to drive growth and engagement.
5. Gen Z is eager for financial advice.
Gen Z also shows strong interest in using a financial advisor, though they are less likely than the general population to currently have one (15% vs. 23%). However, they’re 13 percentage points more likely to express interest in getting one (33% vs. 20%). The main barriers for Gen Z are cost and distrust, while the general population cites lack of funds, not needing one, and cost. Younger adults are also twice as likely to say they don’t know where to find an advisor. This suggests a growing demand for affordable and accessible financial advice tailored to younger consumers.
Answer our Poll: Are you more likely to give or receive financial advice?
Looking ahead, Gen Z’s evolving financial habits reflect broader shifts in how Americans will approach financial literacy. While this generation faces economic uncertainty, they are actively engaging with their finances in ways that suggest a growing need for more accessible and relevant financial education. From prioritizing alternative investments like cryptocurrency to seeking financial advice, Gen Z is forging its own path. Despite feeling cautious about their financial capabilities, they’re more aware of the need for financial guidance and are keen to improve their knowledge. As they continue to navigate these challenges, Gen Z’s experiences will likely shape the future of financial literacy, driving demand for resources that cater to their unique needs.
Join Fortune 500 execs who trust CivicScience data for a real-time picture that helps them engage and retain customers in today’s uncertain economy.
Why ‘Success Is Quieter’ for Younger Americans
These Americans view achievement in less-traditional ways. Cole Smith, 27, aspired to be someone at the top of the data-analytics field. Smith, who loves to run and spend time with his fiancée, says his priorities have shifted.
Younger adults are redefining success and shifting their focus from wealth to health.
It’s not that young people don’t care about money, but they don’t necessarily care about getting rich. Or status either.
While in college, Cole Smith, 27, aspired to be someone at the top of the data-analytics field, even if it meant working 80 hours a week. Now, he’s not sure it’s worth it.
“I worried about being 40 or 50 and not having any interests outside of work,” says Smith, who with his older brother co-founded Visor, an online car-shopping site. Smith, who loves to run and spend time with his fiancée, says his priorities have shifted and that success is about having a more “holistic” life.
Getting financial advice on social media? Experts say be careful
About 1 in 10 Americans now rely on social media for financial tips. The trend is most common among Gen Z and Millennials. 45% of respondents rely on family and friends for financial guidance. Experts say being informed — and skeptical — can protect your wallet in the long run. The survey also found a surprising level of trust in that advice: many users said they believe the information they’re getting is 100 per cent accurate.
The survey also found a surprising level of trust in that advice: many users said they believe the information they’re getting is 100% accurate.
But Lindsey Crossmier, a financial writer and researcher for MarketWatch Guides, said that’s where things can get risky.
“It’s fine to turn to TikTok and online resources if you’re trying to learn about basic financial concepts, like what is a 401(k) and how does it compare to a Roth IRA,” Crossmier said. “But if it’s something more specific, like what stock should I invest in? Or how do I meet a specific savings goal? That’s when you should not turn to online resources.”
In those cases, Crossmier recommended reaching out to a licensed financial professional who can offer advice tailored to your personal goals and financial situation.
The survey also found that 45% of respondents rely on family and friends for financial guidance. While that may feel like a safe choice, Crossmier urged caution.
“I definitely would recommend verifying their status,” she said. “Perhaps looking up reviews online to really see if they made a positive impact on that person’s finances. Just generally do your own research before reaching out to anyone, whether it is a professional, online resource, or a friend or family.”
And when it comes to working with a professional, don’t assume they’re licensed — look them up and confirm.
Whether you’re just starting to build your financial future or seeking help on a specific goal, experts say being informed — and skeptical — can protect your wallet in the long run.
Copyright 2025 Gray Media Group, Inc. All rights reserved.
How To Choose A Financial Advisor in 2025
Financial advisors offer a range of different types of advice. Ask any prospective financial advisor if they would act as your fiduciary. Financial advisors can help you craft budgets, spending plans and set up short and long-term financial goals. Fiduciary advisors must disclose to you any conflicts they may have when managing your account and how they are compensated. They must put your financial interests first, above their own potential compensation. They are legally obligated to act in their clients’ best interest, even if they don’t have to abide by the fiduciaries standard. The CFP Board, a professional organization that administers the CFP certification, sets the standard for the profession and certification for certified investment advisors (CFPs) CFPs can be individuals or firms that provide financial services, such as taxes, insurance, estate planning and retirement planning, as well as individuals that act as their own financial advisors. They have proven expertise in many facets of financial planning, including personal finance, tax planning and estate planning.
A great financial advisor does more than just manage your investments—they help you to use money as a tool to achieve your dreams.
Some financial advisors might charge a hefty fee, treat you to lunch and ask for referrals while still managing your investments responsibly. A bad one may dazzle you with charm and promise incredible returns, only for your money to vanish. So, how do you choose a financial advisor?
Related: Find A Financial Advisor In 3 Minutes.
Step 1: Realize You Need Help
Financial advisors help clients with varying levels of money knowledge, from beginners to seasoned veterans.
Perhaps you want to start a family, buy a business, change careers or even just make sure you can retire one day. Regardless of why you need help, there will be a financial advisor who specializes in your situation and can help guide you through it, and often for less money than you think.
Financial advisors offer a range of different types of advice. Here’s how they can help you.
Investment advice: Financial advisors research different investment options and make sure your investment portfolio stays within your desired level of risk while meeting your financial goals.
Personal finance: Financial advisors can help you craft budgets, spending plans and set up short and long-term financial goals. Part of their role is to keep you on track, with regular check-ins as well as offering you objective advice.
Tax strategy and planning: Tax planning involves strategizing ways to decrease the amount of taxes you may pay. Remember that not all financial planners are tax experts and that tax planning differs from tax preparation.
Retirement planning: Financial advisors can help you build funds for the ultimate long-term goal: retirement. Then, once you’re retired or nearing retirement, they can help ensure you’re able to keep your money safe.
Estate planning: For those who wish to leave a legacy, financial advisors can assist in figuring out a strategy to transfer your wealth to the next generation, whether that’s family, friends or charitable causes.
People are usually prompted to find an advisor because of one pressing issue. Maybe it’s a new job, an inheritance, or a big family change. But take a little extra time to think about where else you could use support with your finances.
– Jessica Goedtel, a certified financial planner and owner of Pavilion Financial Planning.
Step 2: Learn The Lingo
Ask any prospective financial advisor if they would act as your fiduciary. In most situations, you want to enlist a financial advisor who is bound by the fiduciary standard.
What is a fiduciary?
A fiduciary is someone entrusted to manage assets or wealth who is bound to serve in your best interests at all times. Fiduciary advisors must disclose to you any conflicts they may have when managing your account and how they are compensated.
What is a fiduciary duty?
Fiduciary duty is the legal obligation of a fiduciary to act in the best interest of their client. This includes the duty of loyalty and the duty of care. When an advisor has a fiduciary duty, they must put your financial interests first, above their own potential compensation.
Some, but not all, financial advisors are bound by the fiduciary standard, meaning that they are ethically required to work in your financial best interest.
Not all advisors have to abide by this code. For example, broker advisors are held to a “suitability” standard, meaning they must only suggest products that are suitable to a client’s needs. But that doesn’t necessarily mean the suggestions are the best available options.
The rule “requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile,” according to the Financial Industry Regulatory Authority, an organization that regulates brokerage and exchange markets.
Certified financial planner
CFP stands for certified financial planner, a professional certification that requires education, examination, experience and ethical requirements. In general, CFPs have proven expertise in many facets of financial planning, such as investments, taxes, insurance, estate planning and retirement. CFPs are also bound by the fiduciary standard, according to the CFP Board, a professional organization that administers the CFP certification and sets the standard for the profession.
Registered investment advisor
Registered investment advisors, or RIAs, can be either individuals or firms that provide financial services. As fiduciaries, they are legally obligated to act in their clients’ best interests.
Investment advisors managing $110 million or more in client assets are regulated by the Securities and Exchange Commission, whereas those handling up to $100 million fall under the authority of state securities regulators.
The SEC maintains a comprehensive online database, including a directory of investment advisors by the individual’s name. But we’ll get to that shortly.
Related: Find A Financial Advisor In 3 minutes.
Step 3: Decide What Financial Advisory Services You Need
There are plenty of ways to get financial advice these days. The right option for you depends on what you’re looking for, the kind of help you need and how much you want to spend.
Determining what to do with your money—and the type of service you need—will probably shape the kind of financial advisor you go with.
First and foremost, you’ll need to decide if you want a traditional, human financial advisor or a robo-advisor.
Traditional financial advisors
Commission-only advisors
Some financial advisors make money by earning sales commissions from third parties. Others may charge fees, meaning they derive only part of their income from third-party commissions.
Either way, financial advisors who earn third-party sales commissions derive some or all of their income from selling you certain financial products or services.
Best for:
A specific financial product, like insurance policies or certain investment products
Prefer not to pay upfront fees for financial advice
Reasons to consider alternatives:
They may not recommend the best option for your needs
Potential conflicts of interest
Fee-Based Financial Advisors
Fee-based financial advisors earn money through a combination of fees and commissions. They generally will charge a percentage for the assets under management (AUM).
Best for:
Reduced conflict of interest
Comprehensive financial planning
Reasons to consider alternatives:
Cheaper investment management
Don’t meet the asset minimum
Advice-Only Financial Advisors
Advice-only financial advisors provide financial planning services without managing your investments or selling products.
Best for:
Looking to build an investment plan
Wanting a second opinion on an investment portfolio
Reasons to consider alternatives:
Ongoing investment monitoring and management
Hands-off approach to your financial planning and investments
Robo-Advisors
Robo-advisors offer low-cost, automated investment advice. Most specialize in helping people invest for mid- to long-term goals through preconstructed, diversified portfolios of funds.
Some robo-advisors include access to human advisors. But the portfolio is still managed by an automated set of parameters.
Best for:
Low-cost, automated investment management
Simple financial situation
Reasons to consider alternatives:
Making complex investment decisions
Lacks personalized attention
Related: See Our List of Best Robo-Advisors.
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Step 4: Decide How Much You Can Pay Your Financial Advisor
Make sure you understand the fee your advisor charges.
Commission-only financial advisors may seem free on paper, but they may receive a portion of what you invest or purchase as a payment.
Fee-based financial advisors may charge fees based on the total amount of assets they manage for you, or they may charge by the hour, by the plan, through a retainer agreement, or via a subscription model, to name a few examples.
Average financial advisor fee rates are listed in the table below. This data comes from Envestnet’s MoneyGuide 2024 State of Financial Planning and Fees Study.
Financial Advisor Fee Type Average Cost Percentage of AUM 1.05% Hourly fee $268 Flat fee $2,554 Retainer $4,484 See More See Less
Robo-advisors generally charge less than their human counterparts. It’s not unheard of to pay an AUM fee of 0.24% with an automated investor program.
Traditional asset-based compensation models steer financial advisors to focus on preretirees and retirees. However, emerging hourly and flat-fee structures are enabling advisors to also support midcareer individuals. Working with financial advisors early allows you to benefit from the compounding effect of good investments and financial habits for decades to come. – Lei Deng, CFP, chartered financial analyst and founder of Savor Financial.
Step 5: Find a Financial Advisor
There are a few good ways to find a financial advisor. Ask friends, family, and peers for recommendations when trying to find a financial advisor near you. Keep in mind that unless they are financial experts themselves, their recommendations may be more about an advisor’s charisma than their credentials and ethics.
Alternatively, you can look for financial advisors online. Many professional financial planning associations provide databases of financial advisors:
Step 6: Check a Financial Advisor’s Background
When evaluating financial advisors, consider their credentials and research their backgrounds and fee structures.
You can view disciplinary actions and complaints filed against financial advisors using FINRA’s BrokerCheck. Remember, just because someone is part of a financial planning association, that doesn’t mean they’re a fiduciary financial advisor.
Check if the financial advisor is a fiduciary.
Use the BrokerCheck to verify their investment advisor (IA) status. Check if they earn any commissions that could create conflicts of interest.
How to check a financial advisor’s background online
It’s a good idea to look up a potential financial advisor using FINRA’s BrokerCheck service. On the site, you can check for any disciplinary actions, customer complaints or regulatory issues.
You can also verify their employment history, licenses and registrations. The SEC’s Investment Adviser Public Disclosure database is another valuable resource for researching advisor credentials and any potential red flags.
Looking For A Financial Advisor? Get In Touch With A Pre-screened Financial Advisor In 3 Minutes Find A Financial Advisor
Step 7: Hiring a Financial Advisor
Once you’ve picked out a financial advisor, it’s time to hire them.
Each financial advisor and firm operates differently. But your experience hiring a financial advisor will most likely include these steps:
Contact the advisor or firm you’d like to work with. Many firms have a calendar link on their website to schedule an initial consultation call. Gather some basic information before your consultation call. If you have a partner, sit down with them to determine your short-term and long-term financial goals. During the consultation, your advisor will ask you some basic questions. A great advisor will focus on more than just numbers. After (and sometimes before), your financial advisor will send you a form about your financial picture to complete.
Once you decide to hire a financial advisor or advisory firm, you’ll probably receive legal documents to sign. These usually outline the scope of their practice, fee schedule, and rights and responsibilities.
From there, you’ll have follow-up conversations with your financial advisor.
Questions To Ask a Potential Financial Advisor
When meeting a financial advisor for the first time, it’s important to obtain the answers to these questions and ensure you’re satisfied with their responses:
Are you a fiduciary, committed to acting in my best interest? How do you make money? Do you always act as a fiduciary, even when selling commission-based products? What is your approach to financial planning? What financial planning services do you offer? What kind of clients do you typically work with? Do you have any account minimums? Do you have any conflicts of interest in managing money? What information do you need me to provide to develop my financial plan? How many times and how often will we meet? Will you collaborate with my other advisors, such as certified public accountants (CPAs) or attorneys?
Related: Find A Financial Advisor In 3 minutes
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Why Gen Z Is Turning to Financial Advisors Sooner Than Any Other Generation
According to Northwestern Mutual, 28% of Gen Z turned to a financial advisor for the first time within the past year. Among all Gen Z members who have worked with an advisor, the average age at which they started doing so was 23. The spread of financial content on social media has made investing and the importance of money management more visible and accessible to younger people. The fact that people in their 20s are willing to pay for financial advice is likely due to a combination of earlier exposure to financial products and a more challenging economic and financial landscape, including runaway housing prices, stubborn inflation, and painful student debt. This trend represents an opportunity for financial advisors, although initial compensation might not be as good as they’re used to, and some adaptation to Gen Z’s preferences and desires could be required. It’s been a somewhat rough ride for Gen Z. They’ve come of age as the U.S. has experienced the highest inflation in decades and a growing housing affordability crisis.
According to Northwestern Mutual, 28% of Gen Z turned to a financial advisor for the first time within the past year. Their main objective was to figure out how to grow and protect their wealth, followed by saving for retirement. Among all Gen Z members who have worked with an advisor, the average age at which they started doing so was 23—compared to age 30 for Millennials, age 40 for Gen X, and age 49 for Boomers.
The fact that people in their 20s are willing to pay for financial advice is likely due to a combination of earlier exposure to financial products and a more challenging economic and financial landscape, including runaway housing prices, stubborn inflation, and painful student debt.
Key Takeaways Research shows Gen Z is consulting with financial advisors earlier in life than previous generations.
It’s likely this trend is linked to the spread of financial content on social media, particularly TikTok, as well as economic challenges faced by their generation.
This trend represents an opportunity for financial advisors, although initial compensation might not be as good as they’re used to, and some adaptation to Gen Z’s preferences and desires could be required.
Why Are Younger People Seeking Help From Financial Advisors?
Financial advisors don’t usually receive calls from twenty-somethings. In the past, people generally began paying professionals for financial advice when they were a decade or more older.
That began to change with Millennials and is even more evident with Gen Z. Why? Obviously, each individual case is different. However, in the main, it’s likely the following factors played a key role in convincing today’s young adults to reach out for help.
Social media . The spread of financial content on social media has made investing and the importance of money management more visible and accessible to younger people.
. The spread of financial content on social media has made investing and the importance of money management more visible and accessible to younger people. Changing fashions . Talking about money has become cool, and social media is full of influential people advocating for better management of finances.
. Talking about money has become cool, and social media is full of influential people advocating for better management of finances. Economic challenges. It’s been a somewhat rough ride for Gen Z. They’ve come of age as the U.S. has experienced the highest inflation in decades and a growing housing affordability crisis, among other challenges. Against this backdrop, anxiety is almost guaranteed.
Challenges and Opportunities for Financial Advisors
That people are seeking professional financial advice at a younger age represents a great opportunity for financial advisors. These prospective clients still have many years to live, need help with every angle of their finances, and could eventually be poised to inherit large sums of money.
Still, advisors shouldn’t take for granted that loads of new business are heading their way. Research shows the majority of twenty-somethings are still more likely to get advice from friends and family, social media, banks, credit unions, and books. And those who are interested may make different demands than many in the profession are accustomed to.
Young adults can be more distrustful of traditional institutions and products and receptive to alternative asset classes, values-driven investing, leveraging technology, and bite-sized content that gets to the point. They also lead different lifestyles than previous generations. With them, the traditional milestones of getting married, buying a home, and having children are likely to be delayed, and earnings might be more volatile.
Compensation is another potential sticking point. Many advisors charge a percentage of the total assets they manage. The average person in their 20s isn’t likely to offer much in that regard, at least at the beginning, and an alternative fee structure, such as charging by the hour, might not be affordable to them.
The Bottom Line
Growing awareness of investing and greater economic uncertainty are pushing some of today’s young people to seek out financial advisors sooner than members of previous generations. This could be a win-win for all parties, provided advisors are willing to adapt to the needs of a vastly different generation and accept that they may earn less money from them in the beginning.
Source: https://www.foxbusiness.com/video/6376130937112