Financial literacy for the social media generation

There’s something genuinely positive about the rise of financial content on social media. Money was, for a long time, a topic shrouded in silence, shame, and exclusivity. Anything that gets Australians talking about budgeting, investing, and superannuation is, in principle, a good thing.

However, the problem is what’s getting mixed in with the good stuff.

The scale of the shift

Nearly nine million Australians have now consumed financial content on social media. For Gen Z, social media has become the dominant source of financial guidance. More than 2.25 million young Australians now turn to social media for advice. That exceeds both financial advisers at 1.4 million and parents or relatives at 2.2 million.

Research shows that social media influences financial product decisions for more than half of consumers. Platforms such as TikTok and Instagram are particularly influential when it comes to mortgages and credit cards.

That’s an enormous shift in how financial decisions are being shaped. It’s also happening faster than regulation can comfortably keep pace. These platforms have made it easier for younger consumers to learn about finance through short-form video content, sometimes referred to as #Fintok. However, this shift also brings risks. These include fragmented information and exposure to high-risk investments. As a result, regulators have increased scrutiny, including ASIC’s 2026 actions against finfluencers.

What the regulator is doing about it

ASIC has been watching closely. In April 2026, as part of the second Global Week of Action Against Unlawful Finfluencers involving 17 regulators globally, ASIC issued warning notices to four finfluencers suspected of providing unlicensed advice and promoting claims of guaranteed returns.

However, the concern is not limited to individual bad actors. ASIC Commissioner Alan Kirkland noted that algorithms shape much of what people see online. These algorithms are designed to drive clicks and engagement rather than deliver accurate information. As a result, consumers are increasingly exposed to biased or misleading content.

Under Australian law, finfluencers must hold an Australian Financial Services licence or operate as an authorised representative before they can legally provide financial product advice. If someone on social media promises easy money or guaranteed returns, there’s a real risk they are breaking the law. In that situation, followers may be the ones who lose money.

Red flags to watch for

Not all finfluencers operate unlawfully. Some provide genuinely useful educational content. However, the distinction matters. Here is what I tell my clients to watch for.

Guaranteed or unusually high returns are an immediate red flag. No legitimate investment strategy comes with guarantees. Likewise, be cautious of lavish lifestyle imagery used to sell trading strategies. Invitations to join paid “inner circles” or copy-trading groups should also raise concerns. Another warning sign is the absence of credential disclosures. These tactics often indicate that the content is designed to profit from you rather than educate you.

Meanwhile, ING’s research highlights another issue. Social media platforms often amplify financial anxieties and create unrealistic expectations. In fact, 38% of Gen Z report feeling constant pressure to be financially successful. Many content creators deliberately fuel that pressure to drive engagement.

How to engage with financial content more safely

The first step is to check credentials. ASIC’s professional register tool at moneysmart.gov.au lets you verify whether someone is licensed to provide financial product advice in Australia. If they aren’t listed, treat their content as entertainment rather than guidance.

The second step is simple. Treat social media as a starting point, not an endpoint. It can be a useful way to discover topics worth exploring further. However, any significant financial decision deserves more than a social media post. Whether it involves investing, superannuation, debt, or insurance, it should include a conversation with someone who understands your personal situation.

Ultimately, that’s what a financial planner is for. Not to gatekeep information, but to make sure the advice you act on is built for you.