The Finfluencer Problem: 73% Find False Advice from Unregulated Gen Z Gurus

Key Takeaways

• 89% of Gen Z uses social media for financial education, with 83% primarily relying on TikTok.
• 73% say they’ve encountered misleading financial information on social media.
• More than half, 62% have made investments based on social media advice, yet only 15% were fully aware of the risks.
• 35% say social media financial advice has decreased their net worth.
• Platforms or influencers should be responsible for warning users about investment risks, says 81% of Gen Z.

The Rise of Financial TikTok

Findings from Olymptrade's March 2025 survey of Gen Z adults reveal a staggering 89% use social media platforms to learn about personal finance, with TikTok dominating as the platform of choice. A decisive 83% cite TikTok as their primary financial information source, followed distantly by Reddit (10%), YouTube (5%), and Instagram (2%).

This phenomenon has created massive engagement across financial hashtags. Among the most popular, #financialfreedom and #finance appear in over 3 million videos each. While other popular hashtags include #moneytok (2.9 million videos), #personalfinance (951,900 videos), and #moneymindset (928,600 videos). In the last 60 days alone, popular financial hashtagshave appeared in nearly 1 million new TikToks.

Building an Empire of Trust Without Credentials

Recent research from the CFA Institute reveals that finfluencers appeal to Gen Z investors because they produce educational content that is instantly accessible and free, making complex financial concepts more approachable. In their 2025 study "The Finfluencer Appeal: Investing in the Age of Social Media," found that finfluencers are filling a critical gap for Gen Z investors who receive little formal financial education and have limited interaction with regulated financial advisors.

This influence has created a lucrative industry. A study by the Dutch AFM examined 150 financial social media personalities and found a pattern of monetization: 50 sold courses, 17 offered self-authored books, and 24 provided trading signals. These revenue streams demonstrate how finfluencers have transformed free social media content into profitable business empires.

The scale of this influence is significant. Olymptrade's research showed 94% of Gen Z follow at least one financial influencer, while 36% follow four to six finfluencers, and 20% follow seven or more. These digital relationships aren't brief – 78% spend at least an hour weekly consuming financial content on social media, with 34% spending four or more hours weekly.

But it’s not just how Gen Z consumes financial content; it’s also how much. Most users spend between one and three hours per week (54%) engaging with financial content on social media, while 24% spend four to seven hours, and 10% dedicate more than eight hours weekly. This significant time investment demonstrates how deeply embedded financial social media has become in young adults' lives.

Simon Varen, spokesperson for Olymptrade explains, “Young investors relate more strongly to finfluencers than traditional advisors because their style feels genuine and personal. These young people see themselves in these social media personalities, and that builds trust.”

The Trust Paradox: Aware of Misinformation, Yet Still Following Advice

This extensive consumption of financial content on social media has created a paradox: while 73% of Gen Z users report encountering misleading financial information on these platforms, with 62% encountering it "occasionally" and 11% "frequently," many continue to view these same platforms as trusted sources.

This trust manifests in concrete ways: 27% believe user-generated content is more trustworthy than traditional financial advice, and 51% choose social media specifically because they "like the creators." Even more telling, 41% of respondents rely solely on social media for their financial advice, having no other sources of financial information.

“Inexperienced investors are likely to feel emotionally connected to these charismatic financial influencers, which can cloud their perception of risk,” continued Varen.

The implications of this trust become more concerning when examining the awareness gap. Among those who have made investments based on social media advice, only 15% were "fully aware" of the risks involved. A substantial 46% were either "somewhat aware" or "not very aware," while 17% admitted to being "not aware at all" of the potential risks.

The impact of social media financial advice on Gen Z’s wealth presents a mixed message. While 42% of Gen Z investors report that social media financial advice has increased their net worth (7% greatly and 35% somewhat), a roughly equal proportion (35%) say it has decreased their wealth, with 24% reporting somewhat decreased net worth and 11% experiencing great decreases. Nearly a quarter (23%) report no effect at all. These findings add another layer of complexity to the finfluencer phenomenon: while many young adults are turning to social media as their primary source of financial guidance, with 41% relying solely on these platforms for advice, the outcomes appear highly variable. This variability in financial outcomes, combined with the finding that 73% of users encounter misleading information on these platforms, suggests that while social media financial advice can potentially benefit some users, it may pose significant risks for others, particularly given that only 15% of investors report being "fully aware" of the risks involved in their investment decisions.

The Regulatory Vacuum

The current regulatory landscape hasn't kept pace with the explosion of financial content on social media. While traditional financial advisors operate under strict oversight, finfluencers often work in a regulatory vacuum. This disparity becomes more concerning when considering the low rate at which financial influencers give investment warnings that licensed advisors must disclose by law.

In Olymptrade’s survey, traders seem to recognize this gap, with 81% believing influencers, platforms, or both should be responsible for warning users about the risks of trading. However, 79% believe finfluencers and platforms currently fail to provide adequate risk warnings, and only 15% of investors were "fully aware" of risks in their investments.

The CFA Institute report highlights that only 20% of finfluencer content containing investment recommendations included any form of disclosure about potential conflicts of interest, professional status, or whether they received commissions or payments.

Reshaping Financial Beliefs

Beyond driving specific investment decisions, finfluencers are fundamentally reshaping Gen Z's core financial beliefs. Our survey reveals striking departures from traditional financial wisdom, with 68% questioning the need for a traditional 9-5 job and 65% doubting the importance of a college degree. Similarly, 44% question the importance of homeownership as a financial goal, while 41% reject conventional warnings about cryptocurrency investments. Nearly half (49%) disagree with traditional cautions against credit cards. These shifts represent a significant departure from conventional financial guidance and may reflect both changing economic realities and the influence of finfluencer content promoting alternative paths to financial success.

Finding Balance: Responsible Platforms and Consumer Education

As concerns about unregulated financial advice grow, some platforms are working to bridge the gap between accessibility and responsibility. Olymptrade, a licensed and regulated online broker, represents one approach to bridging traditional financial services with modern digital preferences.

The rise of financial influencers represents both an opportunity and a challenge for the financial services industry. While these new voices have helped make financial education more accessible and engaging for young investors, the lack of regulation and oversight presents real risks.

The data suggests that while Gen Z appreciates the accessibility and relatability of finfluencers, they also recognize the need for better oversight and risk disclosure. This awareness creates an opportunity for platforms that can successfully combine the engagement of social media with proper regulatory compliance and risk management.

Methodology

This survey was conducted in March 2025 among 1,753 Gen Z adults aged 18-28. Respondents were asked about their social media usage patterns, investment behaviors, financial beliefs, and experiences with financial content online. TikTok hashtag data was collected in March 2025.