Are Online Knowledge Sources Helping Gen Z Crack The Investing Code?

Do you remember who your parents took financial advice from? In most cases, the answer would be the neighbourhood insurance agent, friends or family, or trial and error.

But Gen Z (those born between 1997 and 2012) are now rewriting the rules with advice and knowledge from various social media platforms.

The oldest among Gen Z were in their early 20s when Covid hit in 2020, and with lives moving digital, that is the medium they are most comfortable with even in matters of investing and financial advice.

Ankur Warikoo, author, entrepreneur and a content creator, says: “When it comes to platforms, YouTube is the most effective, followed by Instagram. Notably, they are more comfortable trusting finfluencers rather than established financial brands.”

Hrutik Tidke, a 22-year-old video producer from Majalgaon, Maharashtra, trusts sources on the Internet whenever he needs to take a financial decision. “I learn about personal finance mostly from YouTube. I also read finance-related articles, but only online—it’s easier and always within reach,” he says. At present, he invests 25 per cent of his salary in equity and bank deposits.

Many Gen Zs we spoke to said that financial education in schools was either minimal or non-existent, forcing them to turn to digital sources for guidance. Social media, online courses, and fintech platforms now serve as the primary sources of financial learning.

Let’s explore how deep is the digital impact on Gen Zs' investing and how feasible these sources of information and advice are.

Bite-Sized And Simple

For most Gen Zs, social media is the easiest way to learn about investing—it’s quick, easy to understand, and always within reach. Since they are always on their phones, short videos and posts fit into their daily routine.

A large part of social media’s appeal is its ability to simplify complex financial topics. When asked what kind of financial content resonates the most with them, many Gen Z individuals pointed to quick, actionable videos on budgeting, investing, and credit management.

Says Warikoo: “Gen Z resonates most with financial content that isn’t prescriptive or condescending. They prefer content that avoids sounding boring, simplifies complex concepts, and speaks in their language. In terms of trends, Gen Zs often turn to bite-sized content like reels and shorts to gain quick awareness, while relying on long-form videos for deeper understanding.”

Srilekha Sarkar, a 24-year-old from Kolkata, who has just started working as a primary school teacher, cites an example of how she benefitted from a Thread on X, formerly Twitter. “A Twitter thread on how to build an emergency fund in six months completely changed my approach to saving. It broke down the process into small, achievable steps, and now I have a fund that covers three months of expenses.” She keeps her emergency fund in a savings account that is not linked to her salary account. She has also started investing in multiple systematic investment plans (SIPs) of mutual funds, all of which amount to Rs 5,000 per month.

Srilekha likes short, engaging financial content over reading books or taking long courses. She says: “With my job and personal life, I don’t have much time to read books or take long courses. Social media helps me stay updated with personal finance hacks, but I always fact check before following any advice.”

There are some who get advice at home and mix it up with what they learn online.

Paromita Ghosh, a 25-year-old nursing professional from Siliguri, West Bengal, saves 30 per cent of her salary in fixed deposits (FDs) and recurring deposits (RDs). While she derives most of her financial knowledge from her parents, she also looks at YouTube videos to understand the basics of finances, such as budgeting, the importance of saving regularly.

Delhi-based 25-year-old Shubharat Kiran, a PR executive, however, learnt the importance of saving only at home. “My parents emphasised the importance of managing money. From a young age, 20 to be specific, they made me track my expenses and save a part of my pocket money. Now, budgeting and investing come naturally to me, and I understand the value of financial discipline. My father has also taught me the basics of futures and options (F&O). A small percentage of my savings go into stocks, for which he helped me a great deal.”

However, experts have a different take. Says Nisha Sanghavi, director, Promore Fintech, “Another problem with Gen Z is that often parents will try to decide for them, without having enough knowledge about anything. Unless and until you take professional help, you will not be able to achieve your goals or multiply or create wealth.”

Deep And Detailed

The shift towards digital learning has made financial education accessible, but has also raised concerns about reliability. The risk of misinformation is high. To bridge this gap, a few Gen Zs are supplementing social media learning with courses from edtech platforms.

Ajay Kumar, a 26-year-old B-School student from Dehradun, was first exposed to personal finance concepts through YouTube, where he watched videos on budgeting, investing, and tax planning. The easy-to-digest format helped him understand the basics, while his father guided him on the importance of managing money wisely. When Ajay landed his first job at 24, he realised that basic financial knowledge wasn’t enough. Managing expenses, taxes, and investment decisions felt overwhelming. That’s when he actively sought structured learning, and enrolled in online courses for investment insights.

He says: “I started learning about money through YouTube; it made finance feel less intimidating. But when I started earning, I realised there’s a lot more to it than just saving and investing. That’s when I knew I had to dig deeper and be more careful about where I got my financial advice from.”

Some do-it-yourself (DIY) enthusiasts resort to reading books and blogs. Parth Raizada, a 24-year-old development sector professional from Lucknow, prefers to read financial books and blogs. He says: “Blogs published by Groww and Zerodha helped me a great deal in learning about the nuances of money management. Even though I have now learned how to use metrics, such as expense ratios for mutual funds, I wish I could learn about the fundamental and technical aspects of personal finance as well.”

Experts feel depending on books and genuine online courses is far better than relying only on information available on social media platforms.

Says Shweta Jain, a certified financial planner and founder of Bengaluru-based financial planning firm Investography: “We all know how misleading social media can be. It is good to read books, take good courses and take advice from professionals.” One can take courses from institutes like the National Stock Exchange (NSE) and National Institute of Securities Market (NISM), she adds.

While the government runs many financial literacy initiatives, they are not yet so popular.

Out of 12 Gen Z individuals we spoke to, nine said they preferred watching YouTube tutorials or reading blogs for detailed content. Most of them had also never heard of the government’s financial literacy initiatives, such as the Reserve Bank of India’s (RBI) National Strategy for Financial Inclusion or capital markets regulator Securities and Exchange Board of India’s (Sebi) Investor Awareness Program.

Then there is the National Centre for Financial Education’s (NCFE), which has programs for college students as well as school students of grade VI to X.

In addition, the National Financial Literacy Assessment Test (NFLAT) conducted by NCFE encourages school students of Class VI to XII, to acquire basic financial skills. NCFE has conducted 60 workshops throughout India, partnering with schools, and has also provided financial knowledge to approximately 38,140 students.

Says Ravi Somani, senior manager at NCFE: “NCFE has implemented various initiatives to improve financial literacy among young people, particularly through integrating financial education in school curriculum, conducting financial education programs, developing financial educational content, and collaborating with various institutions and intermediaries.”

Are They Getting It Right?

There is no dearth of financial content on digital mediums, and more and more young people are turning to the Internet as the primary source of learning.

From social media to brokers to investing platforms and media organisations, to even official channels of financial information such as from RBI, Sebi and organisations like NCFE, there is an overflow of information. But do these sources really help Gen Zs make informed money decisions?

Despite the abundance of online courses and financial content, many Gen Zs feel unprepared when it comes to handling real-world money matters. While they may know the basics of budgeting from YouTube or Instagram, topics such as tax filing, interest rates on loans, and investment risks remain a mystery to them.

For instance, Paromita is saving a substantial percentage of her salary, but only in FDs and RDs. Likewise, Srilekha has multiple SIPs of small amounts, which may not be the best strategy unless her portfolio is diversified across categories.

One of the challenges Ajay faced while navigating financial advice on the Internet was that different sources often gave contradictory information.

“One video suggested aggressive stock investing, while another emphasised risk-free options,” he says. This confusion led him to research more deeply and cross-check information before making financial decisions.

Says Somani, “Financial education entails attainment of a certain level of financial knowledge, behaviour and attitude which can be learnt through structured processes. Randomised trial and error learning can be perilous in a financial market, and more so for Gen Zs.”

From understanding how to optimise savings to making informed investment choices, Gen Zs admit they are still figuring things out as they go.

Says Khiti Sweta Sahu, a 23-year-old PR professional from Naupada, Odisha: “I wish I had learned how credit scores work. I got my first credit card without really understanding how repayment affects my score, and now I’m just playing catch-up.” She used to follow certain newsletters, but felt like the knowledge derived was not enough, which later prompted her to follow some social media personalities.

Abhinay Singh, a 26-year-old merchant navy professional from Bishrampur, Chhattisgarh, feels that searching every corner of the Internet is crucial before one makes a financial decision.

“I started learning about managing my finances at the age of 20 by following famous influencers on Instagram and YouTube, primarily. The knowledge helped me invest in SIPs later,” he says.

Clearly, many Gen Zs are conscious about investment, but are relying on influencers, online courses, and bite-sized content to inform their financial decisions. As a result, sometimes there are huge gaps in the areas of tax and insurance planning, maintaining credit scores and loans, and long-term investing.

Says Warikoo: “Despite having more exposure to information than any other generation, Gen Zs also must deal with misinformation and saturation of content. While some have pursued formal education to plug the gaps, others continue to learn the hard way.”

What Should You Do?

While it’s all right to gather knowledge on the basics of investing from social media posts and online courses, provided it’s cross-checked from multiple sources, when it comes to investing in real life, experience and genuine advice matters a lot.

But advisors differ. Says Nisha Sanghavi, a certified financial planner and the director of Promore Fintech, “Following the advice on social media is not a great way. One should look at getting educated—not from just a random influencer or channel, but from the right mediums. RBI has that educational part, Sebi and Amfi have investment education.”

And for investors in equity, which appears to be a favourite among the Gen Z, proper research is key. Some of them have learnt that the hard way in the past few months as they would have seen the first major downturn post the Covid pandemic.

Warikoo highlights the importance of learning from experience. He says: “Use online to learn, but there will never be any replacement for actually doing it. Investing, much like swimming or cycling or driving, cannot be truly experienced through a video. Invest small amounts every month and see your relationship with money building up, slowly and steadily”.

Also, learning is just one part of the deal, getting professional advice is equally important. “When it's about hard-earned money, you have to go to a planner, financial planner or somebody whom you can rely on, and we'll give you unbiased advice,” Sanghavi says.

It is also important for Gen Zs to steer clear of fads like meme coins and other cryptocurrencies. Investment in these is akin to gambling, say various financial planners who have spoken to Outlook Money in the past on the subject.

Quick gains are attractive, but not taking into account the risk can have disastrous results. In any case, taking advice on social media with a pinch of salt is always advisable.

Says Jain from Investography: “The ulterior motive of people or sponsored advice does not bode well for investors. I’ve seen people lose their lifelong savings, cars and even homes over bad advice. Take advice from professionals, pay for advice, and don’t fall for traps like getting rich faster.”

When it comes to spending, borrowing more than you can afford to repay, especially through credit cards, can throw your life out of gear.

For Gen Zs, learning can start from online sources, but real understanding can only come through experience and well-researched knowledge sources. As for serious investing decisions, seeking professional advice is recommended.

priyanka.debanth@outlookindia.com