More than half of Americans (57 percent) sought financial advice in 2023, and according to a new Bankrate survey, their top resource may surprise you. Friends and family topped the ‘go-to’ list, with 47 percent of those seeking advice saying they used these sources for information.
Popular sources of information varied widely by age group. Younger generations were among the people who most often asked friends and family for advice and also used social media most often for their financial questions. In contrast, older generations were the least likely to use social media for advice and the most likely to use financial advisors.
Despite these numbers, 43 percent of Americans said they would not have sought financial advice in 2023. Older Americans were more likely to not seek advice than younger generations.
Here’s the full breakdown of where Americans get their financial advice, by age and income. Given the wide variety of sources of financial information and the ability of almost anyone to provide advice, Americans should carefully review financial guidelines before taking action.
This is where Americans get their financial advice
The Bankrate survey revealed the wide range of sources Americans use for financial advice and allowed respondents to provide multiple answers for each source they used in 2023.
- Friends and family: 47 percent
- Financial advisors or other professionals: 35 percent
- Social media: 30 percent
- Financial websites: 28 percent
- Banks or other financial institutions: 22 percent
- Radio, TV or podcasts: 18 percent
- Books: 16 percent
- Newspapers/magazines: 14 percent
- Elsewhere: 3 percent
The research also broke down social media by the most popular financial advice platforms, based on the percentage of respondents who mentioned them.
- Influencers on Facebook: 14 percent
- Influencers on Instagram: 12 percent
- Influencers on TikTok: 9 percent
- Influencers on X/Twitter: 8 percent
- Influencers on another platform: 8 percent
Sources of financial information vary widely by age and income
While the top source of financial advice for all Americans was friends and family, the numbers vary considerably when looking at specific generations or income groups.
Percentage of Americans seeking financial advice
The number of Americans seeking financial advice in 2023 decreased with age, with Gen Z reporting the largest percentage seeking guidance.
- Gen Z (ages 18-26): 76 percent
- Millennials (27-42 years): 65 percent
- Generation X (43-58 years): 51 percent
- Baby boomers (59-77 years): 46 percent
Percentage of Americans seeking income advice
The percentage of Americans seeking advice increased with annual household income, with households earning more than $100,000 in particular.
- $100,000 or more: 75 percent
- $80,000 – $99,999: 60 percent
- $50,000 – $79,999: 56 percent
- Less than $50,000: 51 percent
Here’s how other key advice sources were broken down by age for Americans who did seek financial advice.
Friends and family
Younger Americans seeking advice were the most likely to ask friends and family, with Gen Z topping the list, and the percentage decreasing by age:
- Generation Z: 58 percent
- Millennials: 55 percent
- Generation X: 45 percent
- Baby boomers: 33 percent
Friends and family were the most common sources of advice for Gen Z, Millennials and Gen X.
Financial advisors
When it comes to financial advisors or other professionals, baby boomers seeking advice were most likely to have used this source in 2023, with the percentage decreasing with age.
- Baby boomers: 52 percent
- Generation X: 32 percent
- Millennials: 28 percent
- Generation Z: 27 percent
Financial advisors and other professionals were the most popular resources for baby boomers.
Social media
Social media was most popular among younger Americans looking for advice, and was the most frequently cited source by Gen Z. The percentage mentioning social media decreased by age.
- Generation Z: 49 percent
- Millennials: 43 percent
- Generation X: 21 percent
- Baby boomers: 6 percent
For Gen Z and millennials, social media was a more popular source (49 percent, 43 percent) than financial sites (27 percent, 34 percent) or advisors (27 percent, 28 percent), respectively.
Generation X, on the other hand, was more likely to use a financial advisor (32 percent) or a financial site (29 percent) than social media (21 percent).
How to get quality financial advice
Financial advice is a valuable asset. The right advice can dramatically improve your financial future, especially when you are young and small decisions can have a big impact through the power of compounding. That’s why it can be distressing to see so many young Americans turning to social media as a source of financial advice, given its high degree of unreliability.
In fact, Americans are realizing that social media is not a good source of information, with 65 percent saying social media is unreliable for financial advice in a 2023 CreditCards.com survey.
So how can Americans make sure they’re getting accurate advice?
1. Ask for ‘salesy’ financial advice
Financial advice can often be a sales pitch in disguise, whether that’s a pitch to “invest with me” or “buy my product.” If you’re looking for guidance and you hear a sales pitch, first try to understand what’s in it for the salesperson, whether they’re social media influencers or even traditional financial advisors. They may get a commission if they get you to buy or invest.
You can’t just accept a salesperson’s advice without first understanding how their product or approach works. If their motivation is to sell something, chances are it’s not in your best interest. So it’s essential to question every sales pitch you receive, even if (and especially if) it comes from a legitimate source.
2. Turn to objective sources
When it comes to using free media – radio, TV, financial websites and more – it is crucial that you turn to objective sources of information, especially those that have an ethos that is investor or consumer friendly. Avoid sources that merely promote a partisan agenda or ideology.
Consulting a wide variety of objective sources can also help you develop a well-rounded view of the financial landscape and gain confidence in your understanding. Another strategy: See what one expert says about another’s advice, and see how they can provide a better solution.
High-quality information sources are available for free, meaning even younger Americans with little money can access them – if they’re willing to do the work to seek out the good sources.
3. Work with aligned financial advisors
When turning to financial advisors, it is important that you find one that suits your needs. Chances are you’ll get the best advice from a fiduciary advisor who only accepts paying clients. While this setup means you have to pay for the advice out of pocket, this compensation structure helps tailor the advisor to your needs.
Many so-called advisors, on the other hand, are simply salespeople in disguise, and if they get paid for what they sell, their top priority is selling something to you. That’s why it’s critical that you treat finding a financial advisor like a job interview: finding the person who has your best interests at heart. Here are six of the most important tips for finding a financial advisor that’s right for you.
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All figures unless otherwise stated are from YouGov Plc. The total sample size was 2,391 adults, of whom 1,375 received financial advice in 2023. The fieldwork was conducted between November 13 and 15, 2023. The survey was conducted online. The figures are weighted and are representative of all US adults (18+ years).
