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Gen Z knows TikTok isn't the best place for financial guidance—but the young cohort uses it anyway. A report issued by the CFP Board finds that while young adults rate the social media among the least trustworthy for money advice, it remains one of their most common sources.

The study shows the skepticism is real. About 4 in 5 Americans say they question the accuracy of financial information they find in the broader internet at least once a month. Friends and family are still the top source of financial advice for 55% of people, but 40% now turn to social media, a share that rises to 47% among adults under 45.

Within that group, YouTube is the most used for financial content, with Instagram and TikTok close behind. A growing slice of social media investors are also starting to check what they see with a professional by looking for an advisor who can review their situation, not just their feed.

The report found that 37% of respondents say they feel comfortable acting on advice from social media without verifying it, but for adults under 45 that figure rises to 44%. The CFP Board found that nearly 3 in 5 Americans have made a financial decision based on online information they later discovered was misleading, and among Gen Z and younger millennials that share climbs to about 64%.

That is why speaking with a financial advisor who can stress‑test what you see online against your actual numbers can be a useful second step before acting.

The consequences are concrete. Roughly a third of respondents said they had delayed major decisions like buying a home or saving for retirement because of something they saw online. Nearly 30% reported making financial moves without any professional input, and 28% said they ended up paying unnecessary fees or expenses. Almost 1 in 5 reported losing more than $1,000 due to bad online advice, and another 21% lost between $250 and $1,000—sums that could have gone toward debt payoff, an emergency fund or long‑term investing instead.

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There is an emotional cost as well. About 21% of those who acted on misleading advice said they now feel more anxious about their finances. A quarter said they had made a rushed decision they later regretted, and 23% reported losing some trust in financial institutions after realizing they had followed poor guidance.

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At the same time, the survey shows that people do see a better alternative. Financial advisors rank as the most trusted source of money advice, with 74% of Americans saying they would feel comfortable acting on an advisor's recommendations without extensive second‑guessing.

Yet only about 32% report actually working with one. For readers who are starting to feel the limits of DIY and social‑driven advice, tools that match you with financial planners who work with clients like you offer a way to test what you're hearing against a full view of your income, debt and goals.

The CFP Board report doesn't dismiss online content outright. It notes that the internet has broadened access to financial information and helped introduce basic concepts to people who might not otherwise encounter them. But it also documents the common patterns found in misinformation. Those include exaggerated investment returns, incomplete or inaccurate AI‑generated tips and misleading claims about Social Security rules and benefits.

Most people say they are at least trying to verify what they see. The study found that 93% of Americans attempt to validate online financial information in some way.

The data describes a generation inundated with unprecedented access to information and an equally unprecedented volume of noise. Many Gen Z users understand that not everything on their ‘For You' page should drive a major financial decision, but the immediacy and convenience of social platforms make them an easy default when questions come up.

Bridging that gap is the challenge for both Gen Z and the financial industry. One approach is to treat social content as a starting point and then route important decisions through a planner who is required to act in the client's best interest. A financial advisor can help evaluate whether a trend, strategy or product seen online fits a specific balance sheet and time horizon, and can point out tax or risk issues that short videos often skip.

SmartAsset's free matching tool is built for that role. After answering a brief questionnaire, users are matched with up to three financial advisors who serve their area, making it easier to compare approaches and decide whether to bring a professional into the loop before acting.

For younger investors in particular, that's about adding a second layer, one that is grounded in full‑picture planning rather than algorithms. Using a service like SmartAsset to find an advisor who can help turn scattered tips into a coherent plan is one way to make sure a viral idea doesn't carry more weight in your financial life than it should.

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This article Gen Z Says TikTok Is the Least Trustworthy Place for Financial Advice — And Then Uses It Anyway. A New Study Shows Exactly What That's Costing Them originally appeared on Benzinga.com

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