In the 21st century, teenagers and young adults prefer to find out more about investing money online. A study found that YouTube is particularly popular as a source of information among young people. But apparent tips and tricks are also advertised on social media.
Information gathering prefers to take place online
In 2019, the Commerzbank subsidiary comdirect launched a nationwide survey via an online portal. The information provided by 1,600 teenagers and young adults between the ages of 16 and 25 on the topic of “money and investments” was examined. The study found that 60 percent of the people surveyed only find out about current topics on the Internet, of which 42 percent use social media. Only one in four young people now reads the traditional newspaper or discusses important things with their friends or acquaintances.
Based on the study, Arno Walter, CEO of comdirect Bank, sees new ways to reach young people and make information available on as many channels as possible. He thinks it makes sense to reach people via multiple platforms and to use services such as blogs, podcasts and websites to diversify fields of information and, for example, to specifically target women with your own concepts on the subject of finance. The use of social media also offers the opportunity for personal and digital exchange, so a dialogue can also take place among users.
YouTube replaces the financial advisor
Although 36 percent of respondents still visit their bank branch when they have questions about investments, there is a clear trend towards obtaining information digitally. Young people use familiar channels to get up to date on financial matters. Google subsidiary YouTube is by far the most popular source of information among participants in the 2019 survey and is particularly popular with young men. 26 percent of male and 13 percent of female respondents to the survey said they regularly research current topics on YouTube. The importance of digital sources is therefore constantly growing. While in 2016 just seven percent of those surveyed used the video portal, in 2019 the figure was already 20 percent.
TikTok & Co. are also on the rise
A survey by the market research institute Appinio on behalf of the influencer agency WeCreate showed that one in three teenagers or young adults devotes more than six hours a day to their cell phone. The video portal TikTok from the Chinese company ByteDance seems to be particularly popular among 14 to 25 year olds. According to survey results, the application, which is known for short videos, achieves much higher popularity than YouTube or the Instagram platform, which belongs to the Meta Group. However, together the three platforms account for more than half of the reported screen time. So there is plenty of time to deal with a wide variety of topics.
Similar to YouTube, there are more and more so-called “finfluencers” on TikTok and Instagram who share what appear to be the best strategies for investing with their audience. The spectrum ranges from facts worth knowing, to possible exchanges, to specially created seminars and workshops.
Nevertheless, caution is advised
The possibilities of the Internet are limitless, which is why information is in abundance. This makes it difficult, especially for young people, to differentiate facts from untruths and allegations. False information can be widely disseminated and spread, especially on platforms such as TikTok, Instagram and YouTube. As broad as the spectrum of offers seems, the characters of the Finfluencers are just as different. And not all of them can be assumed to be serious; some of them are involved in pyramid schemes. What signs should you look out for to avoid such a financial trap?
According to the “Tagesschau”, advertising partnerships with financial partners, for example, are an indication of dubious intentions. Affiliate links that redirect to product providers and thus provide influencers with a commission should also be treated with caution. Both aspects reduce the influencer’s independence and therefore represent potential stumbling blocks. But their appearance can also be an indication of a lack of seriousness. Finfluencer Michael Flender told the news portal “t3n” that he criticized influencers who advertised with thick wristwatches and expensive champagne. “They then promise something that is absolute nonsense because it simply doesn’t work,” he continues. Finally, investment recommendations or payment requests are an absolute warning signal, consumer advocate Philipp Rehberg told “t3n”. Finfluencers are not in a position to make general recommendations because financial advice should be as individual as the people themselves.
Ultimately, it is always important to check all the information yourself and form your own opinion.
J. Vogel / editorial team finanzen.net
Selected leverage products on Alphabet A (ex Google)
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Alphabet A (ex Google)
The leverage must be between 2 and 20
Advertising