It’s no secret that Gen Z and Millennial generations of taxpayers are seeking wealth advice primarily through social media. A survey of 1,009 people in January 2024, commissioned by Forbes Advisor and conducted by market research company Prolific, found that 79% of members of the Millennial and Gen Z generations have gotten wealth advice from social media.
Some might say it’s a train wreck waiting to happen, but we say it’s good news for your firm! Is there an abundance of terrible advice on TikTok? Yes. Can you, a professional and licensed wealth advisor, knock out the competition with a simple 2-minute advice video once a week? You can! Let’s jump into the why, where, and when so your firm doesn’t get left in the dust as social media becomes the primary influence of our future society.
Why are taxpayers under 40 going to social media for tax advice?
Social media gives the viewer a feeling of compassion and understanding. In Forbes’ survey, 76% believe financial content on social media has made it less taboo to talk about money, and 62% feel empowered by their access to wealth advice on social media.
Where should your firm spend the most time for the most growth?
The top social media sources where young adults are getting their information are YouTube and Reddit, both at 47%. The least used social sites are LinkedIn at 7% and Facebook at 3%. These platforms are over-saturated with poor advice and very little research behind it.
Outside of social media, those surveyed primarily get wealth advice from family (35%) and internet searches (33%). Using wealth advisors is comparatively rare (11%).
When can you start?
After you comment on this article! It takes a solid 3 minutes to create a new profile on your choice of social media platform. It’s normal to feel nervous at first, but after some practice (and a few deleted videos), you’ll get the hang of it. Remember to talk to the camera like you would a new client and let the algorithm do the rest of the work for you.