New research reveals a major shift in how younger investors seek financial advice, with social media platforms gaining prominence as sources of investment ideas. Money Marketing cites a study by Hargreaves Lansdown, which shows the number of young investors turning to TikTok for investment guidance has increased from 12% in 2021 to 20% in 2024. Similarly, Reddit’s influence has grown from 17% to 26% among the same demographic.

This trend coincides with a decline in the use of traditional financial company websites among 18-34-year-olds, dropping from 43% in 2021 to 29% in 2024. Susannah Streeter, head of money and markets at Hargreaves Lansdown, notes that the intersection of social media and financial markets is becoming increasingly significant.

The study also highlights changes in other age groups. Middle-aged investors (35-54) increasingly use social media platforms, with Reddit usage doubling from 5% to 10% and Instagram use rising from 4% to 10% between 2021 and 2024. Investors over 55 rely primarily on traditional financial websites and financial advisers.

Gender differences in investment approaches are also apparent, with 19% of men reporting they generate their investment ideas compared to 7% of women. Streeter suggests this could reflect differences in risk tolerance and investment strategies between genders.

The research, conducted by Opinium on behalf of Hargreaves Lansdown, surveyed 2,000 people.