A recent national study has uncovered some eye-opening patterns in how investors make investment decisions. The FINRA Foundation’s 2024 National Financial Capability Study1 surveyed thousands of investors and found significant gaps between where young investors get their information and what makes for sound financial decision-making.
So where are investors getting their information? And what should you know about each source?
1. Friends, family, and colleagues
85% of young investors turn to people they know as their primary source—even more than professional advisors. However, consider that your family member’s or friend’s success might be luck, not skill. They may have different risk tolerances, might not share their losses, or be in completely different financial situations. What worked for them may not align with your goals or timeline.
2. Social media, such as influencers, YouTube, and Reddit
Social media has become a dominant source of investment information for young investors. Among this group, 61% report turning to influencers, 61% use YouTube, and 36% consult Reddit when making financial decisions.
- Finfluencers often have undisclosed conflicts of interest and may be compensated to promote specific investments, since their goal is engagement and audience-building, not personalized fiduciary advice for your situation.
- YouTube and social platforms reward dramatic content over accurate content, with algorithms favoring exciting stories about huge wins and risky bets rather than proven but less exciting strategies like diversified index fund investing.
- Echo chambers, such as Reddit, can normalize risky behavior. The study found 29% of young investors have purchased “meme stocks,” or extremely volatile investments driven by social momentum rather than fundamental value.
3. Mobile trading apps’ “popular” or “trending” features
Apps have made investing so accessible that 80% of investors under 35 report trading on a mobile app. But apps often highlight trending stocks to increase your trading activity—not necessarily to build your long-term wealth. They profit when you trade frequently, which research shows typically means higher costs and lower returns for investors.
4. Research from brokerage firms
This is generally more reliable than social media for factual information. 75% of all investors rely on research and tools provided by brokerage firms. Most major firms offer free, fact-checked resources and educational tools, though it is worth keeping in mind that brokerages may emphasize their own products or services.
5. Financial professionals
While 69% of all investors consult financial professionals, young investors tend to use this resource less than other sources. Professionals such as CERTIFIED FINANCIAL PLANNERS® provide valuable personalized guidance tailored to your specific situation. Key questions to ask include “Are you a fiduciary?” and “How are you compensated?” Fee-only fiduciaries are required to put your interests first, while commission-based advisors may have incentives to recommend certain products.
While social media, friends, and apps can be useful starting points for learning about investing, they shouldn’t be your only basis for making financial decisions. As data shows, many young investors are getting information from sources designed to generate engagement or sales rather than help them succeed based on their individual circumstances.
So, before you invest based on a TikTok video, a friend’s tip, or a trending app notification, ask yourself whether you actually understand the investment and why it makes sense for your specific financial situation. Your financial future deserves informed, thoughtful decisions based on solid knowledge and credible sources—not just what’s trending.
1 https://finrafoundation.org/sites/finrafoundation/files/2025-11/NFCS_Investor_Survey_Report_White_Paper.pdf. All statistics cited above are drawn from this report.