Research of 2,025 adults revealed 60 per cent turn to social media channels and influencers for financial advice and tips because it is ‘unfiltered’ and coming from someone in a more ‘real’ way.
While a quarter find financial information on social media easier to understand than other sources.
Tips on things like investing money, budgeting to make cash work harder and how to find the best discounts were actively sought after on these platforms.
And 41 per cent believe social media will be the primary source for credible, expert advice on key life topics within the next five years.
Similar research was also carried out on 1,046 12 to 17-year-olds which revealed 43 per cent rely on social media channels and influencers for financial advice.
And 45 per cent of youths think social media platforms will be used to carry out all money transactions in the next 10 years.
Social media provides greater financial understanding for younger people
The study was carried out by mall builder Westfield, which is hosting a #BossBudgeting event at its Westfield Stratford City centre next week, where 'FinFluencers' will help young people discover clever finance 'hacks' to future-proof their finances.
Ellie Austin-Williams, Founder of This Girl Talks Money, who will be leading three sessions at the event, said: “Today’s economic climate can be daunting for anyone to navigate, let alone for young people who are just starting to manage their own budgets and step into ‘adult life’.
“It’s fascinating to see how many people are turning to social media for financial guidance at this time and to see the trends revealed by Westfield’s How We Shop platform that affect people of all ages – young and old.
“‘I’m so pleased to be in a position where I can share my own experiences and offer tips to help others, giving them the tools to make their own financial decisions.”
It also emerged 45 per cent of all adults are reliant on social media for financial advice with 44 per cent thinking social media will become even more integral to everyday life in coming years, to the point where you can’t get by in daily life without it.
And 36 per cent of young people reckon they’ve gained a greater understanding of the cost-of-living crisis through such channels than they would have done elsewhere.
On average, a third (35 per cent) of young people have learnt skills such as budgeting money, how to save (34 per cent) and even how to invest (34 per cent) on social media and via influencers.
£500 has been saved after following influencer advice
Just over half (51 per cent) said they value the opinions of social media influencers who are similar to them while 42 per cent look to influencers for tips because they’re explained in an easy-to-understand way.
Over the last 12 months, over a third of teens have saved up to £500 following advice they have received from social media channels and influencers.
While of all adult respondents who took part in the survey by OnePoll, 20 per cent of those aged between 45 and 54 are more likely to turn to social media for financial advice since the cost-of-living crisis began.
Sarah Fearon, head of marketing UK at Westfield, added: “Our recent analysis of UK consumer habits carried out as part of our How We Shop platform has uncovered that Finfluencers are shaking up the online world and are the latest development in financial literacy and personal finance management.
“We’re excited to be able to bring a number of these influencers into our centre to host our #BossBudgeting event, meet guests IRL and impart easy-to-digest information and fast-paced financial tips, ultimately empowering them to feel more confident with their finances.”
For more information click here.
