‘Constant pressure’: Younger Aussies reveal grim money trend

Millions of younger Australians are getting their financial advice through social media, amid concerns they are feeling “constant pressure” to keep up financially while comparing themselves to unrealistic expectations online.

New research released by ING reveals that over 2.25 million Gen Z Australians get their financial advice through social media.

This rivals traditional methods, including a financial adviser, which an estimated 1.4 million young people use, or the 2.2 million young Aussies who get their advice from parents or relatives.

According to the research, these young people using social media for their financial advice are creating financial anxieties and unrealistic expectations.

Nearly four in ten now say they feel “constantly pressured” to be financially successful.

ING head of consumer and market insights Matt Bowen told NewsWire that younger Australians are feeling the pressure to keep up with the Joneses.

“There is certainly an element of peer comparison and we know social media is the glossy version of people’s lives,” he said.

“When Australians compare their individual circumstances to what is effectively the aspirational aesthetic content that exists on social platforms, it can drive a point of comparison.”

Such is the pressure these young people are feeling, 15 per cent say they are pursuing side hustles they would rather not be doing.

ING’s research comes as a social media ban kicks in on Wednesday that will force platforms to verify users’ age.

Failure to do so could see them slapped with fines up to $49.5m.

The 10 platforms covered by the restrictions so far include Instagram, Facebook, Kick, Reddit, Snapchat, Threads, TikTok, Twitch, X and YouTube.

Mr Bowen says while they only surveyed the results from Australians aged over 18, they would expect similar results from Gen Alpha.

“It is clear Gen Z are present on these channels and it is the logical next step for Gen Alphas,” he said.

“While we don’t have the data for under 16s, we think it is trend worthy and indicative of what they are also consuming.

While young Australians are feeling the financial strain Mr Bowen also pointed out that there’s a lot of positives coming out of social media when it comes to creating good financial habits.

“Younger generations are quite savvy when it comes to navigating a challenging landscape financially,” he said.

“They want to get ahead but they don’t want to do it in a way that will damage their mental health, so they know fundamentally that more money makes you happy but they aren’t willing to just pursue money to the point where it impacts their wellbeing.

“There is a nice balance and this kind of self regulation with money being important but it is not a sole focus.”

Overall, 8.9 Australians actively follow financial content through their social media, while 49 per cent admit they have these platforms that have directly influenced their personal financial decision.

Mr Bowen says all Australians should check the validity of these sources.

“Whether you’re a younger, middle-aged or older Australian you do need to make sure you’re checking the ASIC website confirming these Finfluncers or Fintok advisers have the right credentials,” Mr Bowen said.

“Even if they have the right credentials it doesn’t mean it’s personal to your needs, so that is the other key consideration for people consuming this content.

Six tips to navigating online sources

ING also shared six tips for Australians when getting financial advice from social media.

Verify Credibility: Always question the source.

Look Beyond the Hype: Be wary of “get rich quick” schemes. Sustainable growth is built on sound principles, not instant gratification.

Cross-Reference and Research: ING also says Australians should always validate the information from multiple and independent sources.

Understand Your Personal Goals: Filter advice through your own financial situation, risk tolerance, and long-term objectives.

Distinguish Entertainment from Advice: Recognise that much social media content is engaging entertainment, not comprehensive financial planning.

Know When to Seek Professional Help: Social media is not a substitute for personalised financial advice.