The cost-of-living crisis has seen one in three adults turn to social media platforms like TikTok – for money-saving tips and financial advice, a study has found.
A quarter of adults find financial advice easier to understand on social media than from other sources – from tips on budgeting and investing money, to how to find the best discounts.
And a poll of 2,025 adults revealed that one in five respondents aged 45 to 54 are more likely to turn to social media platforms for financial information since the cost-of-living crisis began.
This is because six in ten feel advice from influencers online is more “real” and “unfiltered”.
And two in five (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 almost half (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.
The study was conducted 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 over a third of young people (36 per cent) 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.
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.
And over the last 12 months, more than a third of teens have saved up to £500 following advice they have received from social media channels and influencers, according to the OnePoll survey.
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.”
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