Two-Thirds of Gen Z Trust Social Media for Financial Advice

• ASIC reports that 23% of Australians aged 18–28 now own cryptocurrency, highlighting Gen Z adoption.
• About 63% of Gen Z rely on social media as a main source of financial information.
• ASIC warns Gen Z relies on social media algorithms that favor clicks over accurate info.

New research from the Australian Securities and Investments Commission (ASIC) shows that about one in four Australians aged 18 to 28 (23%) who are part of Gen Z own cryptocurrency. While the figure highlights the growing adoption of digital assets among younger investors, the regulator says the trend raises concerns about how these individuals are making financial decisions.

The Numbers Behind the Problem

Nearly two-thirds of Gen Z respondents (63%) said they use social media as a primary source of financial information. 30% turn to YouTube, and 18% are using AI platforms to guide investment decisions. More than half say they somewhat or completely trust what financial influencers tell them online.

What concerns ASIC is not that young people are curious about money. It is that the platforms delivering that information are optimised for engagement, not accuracy. Algorithms reward content that generates clicks and emotional reactions, not content that is balanced or technically sound.

Crypto Is Where the Risk Shows Up Most

The consequences are visible in the data. Of those, 66% describe their approach as at least partly short-term or speculative. Almost 30% say they trade based directly on social media recommendations. 

One in four tries to pick winning coins by buying whatever is newest. 15% say they invest, in their own words, just for a punt. Almost three-quarters of Gen Z (72%) have seen social media advertising encouraging them to invest in crypto in the past 12 months. Two in five have been directly contacted by someone offering to help them invest.

What the Regulator Actually Said

The concern is not crypto ownership itself but the behaviour behind it. Regulators say many young investors approach crypto with a short-term, speculative mindset.

ASIC Commissioner Alan Kirkland did not soften his assessment. “What they see on social media is usually shaped by algorithms designed to drive clicks and views rather than providing accurate information,” he said. He added that short-term or speculative trading driven by popular online trends carries real risks, particularly in volatile markets like crypto.

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