A newly released study by personal finance portal MoneySmart reveals that social media has become a dominant source of financial information, influencing key decisions around investments, savings and spending habits.
The study, which interviewed 2,000 adults in Hong Kong SAR and Singapore, found that more than half (52%) now rely on social media as their main source of financial advice, trumping the likes of family and friends, financial advisors, and personal finance books. Platforms such as YouTube, Instagram and Facebook emerged as the most popular for accessing financial insights.
Nearly half (43%) of those surveyed believe social media has improved their financial knowledge, with 19% using it daily to seek financial tips and advice. According to the study, Millennials are the generation most frequently turning to social media for financial advice, with 53% seeking information at least weekly.
The most popular topics across all age groups include investing (59%), saving (57%) and budgeting (34%).
Social media is shaping our financial behaviour and investments
In today’s digital age, financial information is more accessible than ever, with social media empowering individuals to take a more proactive approach to managing their finances. Nearly a quarter (23%) have changed their spending habits due to social media, with 30% starting a budget, 16% initiating an emergency fund and 11% increasing their retirement savings contributions.
Interestingly, regional preferences emerged, highlighting unique usage patterns in Singapore and Hong Kong SAR. YouTube stands out as the most popular platform for financial advice in both markets, reflecting the possible appeal for video-based learning.
However, platform preferences diverge beyond YouTube, with TikTok gaining popularity in Singapore as a hub for short-form financial content, while Whatsapp and LIHKG forums resonate more with Hong Kongers for community-driven discussions.
This diversity in platform usage underscores the importance of adopting tailored strategies to engage and educate consumers effectively across different markets.
Beyond habit shifts, social media is also encouraging Singaporean and Hong Kong SAR adults to make substantial financial decisions. Nearly a quarter (24%) have opened a savings account, while 18% have applied for a financial product such as a credit card or loan due to social media advice.
Investments, in particular, were heavily influenced by social media, with 37% of respondents making investments based on advice seen online, with popular choices including US stocks (45%), bonds (24%), etc. This illustrates how recommendations on social media are actively shaping financial behaviour and underscores the importance of ensuring that consumers are equipped with the skills needed to assess the credibility of financial advice online.
The financial risks of social media
While social media provides broader access to financial information, the study reveals significant risks tied to unverified advice.
Alarmingly, almost 1 in 5 (18%) respondents lost money on investments influenced by online advice, and a further 14% fell victim to financial scams after following social media recommendations.
Among those who followed social media advice, 9% reported substantial financial losses. These findings underscore the serious consequences of following poor or even malicious financial advice on social media, with many suffering direct financial losses that could have a lasting impact on their overall financial security.
Adding to these concerns, 70% of respondents encounter financial advice passively through their social media feeds, suggesting that they may be influenced by financial content even when they’re not actively seeking it.
Additionally, a number (12%) of respondents reported feeling more confused or overwhelmed by the sheer volume of financial information on social media, highlighting the need for better guidance. These findings emphasise the real dangers of unverified advice and the critical importance of seeking reliable financial guidance from trusted sources.
Abel Lee, General Manager at MoneySmart Singapore and Hong Kong commented, “Our study reveals a significant shift in how consumers approach financial advice, with social media now taking the lead over traditional sources. While it’s encouraging to see more individuals engaging with their finances, it’s crucial to ensure the credibility and accuracy of the information they rely on.
“While social media has made financial advice more accessible, it also comes with risks from unverified sources. In a landscape where unverified advice is prevalent, our focus is to empower individuals with the tools, trusted guidance, and personalised recommendations they need to make informed decisions that lead to positive outcomes,” said Lee.
