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Gen Z adults (ages 18 to 28 in 2025) are all too familiar with complex financial challenges like student debt, rising living costs, and volatile job markets. Yet, despite these hurdles, only 1 out of 5 adults of this generation would turn to an expert for financial guidance, according to Investopedia’s 2025 American Dream Study.
Let’s unpack the reasons behind Gen Z’s hesitation to seek professional financial help and explore how early guidance can have an outsized impact on your lifetime wealth and security.
Key Takeaways
- Many Gen Z individuals turn to family, friends, and social media for advice due to its accessibility. However, the advice may not be reliable or relevant for their situations.
- Professional guidance from a knowledgeable, reputable expert can help Gen Z adults avoid common financial traps like high-interest debt, underinvesting, and a lack of diversification.
- Early financial planning lets you take advantage of compounding benefits and long-term investing, giving you more time to grow your wealth.
- Ignoring professional advice now could lead to significant financial disadvantages in the future—even if you don’t have much capital right now.
- Professional advisors can better connect with this demographic by adapting their communication style and pricing models to meet younger adults where they are.
Why Gen Z Avoids Professional Advice
Investopedia’s study found that when asked where they go for financial advice, only 20% of Gen Z choose financial advisors. Here’s why, according to the data:
- They’d rather teach themselves. Digital-first Gen Z prefers “DIY” online learning to formal financial advising sessions. More of them say they would turn to short- and/or long-form video content on social media (50%), online forums like Reddit (23%), or books and self-help guides (22%) rather than seek out professional insights. While these resources may be more self-paced and readily accessible, they’re driven by user-created content and crowdsourced opinions, which means they may be inaccurate or insufficient for an individual’s unique circumstances.
And according to other research we reviewed:
- They don’t trust financial institutions. Gen Z grew up in the wake of the 2008 financial crisis and watched their parents struggle to make ends meet. Now, as adults, they’re wary of banks’ lack of transparency and predatory tactics with financial products. Even with the means to invest, deciding which institutions and professionals to trust with one’s most valuable assets can be challenging for those just beginning to manage their finances.
- They don’t know all their options. Plenty of affordable and free financial advisory services exist, but Gen Z adults may not know where or how to access them. Banks and credit unions, employers, 401(k) providers, pro bono financial services, and the Consumer Financial Protection Bureau all offer low- or no-cost financial resources to help you make the best decisions for your current situation and future wealth goals.
Why This Matters
Neglecting financial literacy and planning for the future will only delay your long-term wealth-building and big financial goals. Regardless of what’s in your bank account, taking a proactive approach to wealth management today means you can leverage compounding benefits from early investments.
Seeking financial advice from a pro can also help you make smarter investment decisions and manage your risk more effectively. Informed financial preparation is key to navigating medical emergencies, sudden job disruptions, and other unexpected expenses. Personalized insights and planning strategies can also make you more financially resilient during economic downturns.
Finally, professional advice can help you avoid debt traps—cycles of borrowing that are hard to pay off. “Buy now, pay later” plans or credit cards with appealing introductory interest rates and incentives may seem like convenient, quick fixes, but improper management of these products can leave you with hefty accumulated interest charges.
Note
Experts can help spot hidden terms and predatory fine print to help protect your wealth and support smarter, informed decisions.
How To Bridge the Gap
Traditional financial advisory models may not resonate with or be accessible to Gen Z adults. To encourage more members of this generation to explore professional services, advisors and institutions need to meet them where they are, which means prioritizing a digital-first, financially flexible approach.
Digital-First Advisory Models
Robo-advisors—automated, algorithm-driven platforms that use user-provided data to generate personalized financial advice and investment support—offer a lower-cost alternative to in-person financial services. However, they may lack the nuance required for more complex situations.
Tip
A hybrid advisory model can deliver the efficiency and convenience of robo-advisors with the personalized insight of a human professional.
Social Media Engagement
Financial advisors can capitalize on Gen Z’s preference for learning through social media platforms by creating credible and relatable content for platforms like TikTok, Instagram Reels, YouTube, and Reddit. They can offer engaging, helpful advice for common financial situations while encouraging users to seek out professional services for individualized advice.
Flexible Payment Options
Advisor fees are commonly structured as a percentage of total assets; under this model, a minimum asset requirement typically applies. However, they’re far from the only payment structure. Some professional services charge hourly or project-based fees, while others offer subscription-based financial planning. These models can appeal to Gen Z adults with fewer assets or more modest income, or who simply want to test the waters of professional services.
How Much Does Professional Financial Advice Actually Cost?
The cost of professional financial advice varies by service provided and payment structure. Investment management services under a financial advisor typically cost between 0.5% and 1.5% of assets under management (AUM). Similar services provided by a robo-advisor tend to have lower rates, usually between 0.25% and 0.5% of AUM.
Broader financial planning services—such as tax optimization, estate planning, and retirement strategies—may be included in asset-based fees. Alternatively, they may cost a separate flat rate ($1,000 to $3,000) or an hourly rate ($150 to $400).
Can I Get Meaningful Financial Guidance Without a Large Investment Portfolio?
Yes, even if you don’t have a large investment portfolio, you can still receive meaningful guidance from a financial advisor. In addition to portfolio management, financial advisors also offer a range of services, including but not limited to: budgeting and debt management, retirement and estate planning, education and long-term healthcare planning, and tax efficiency strategies.
What’s the Risk of Relying Solely on Social Media for Financial Education?
While social media can be a solid starting point for financial education, its creators aren’t always vetted financial professionals. This, combined with the nature of social platforms and the content they prioritize, means you’re likely to see oversimplified or one-size-fits-all information at best and misinformation or outright scams at worst. Consulting a financial advisor can help you separate the noise from what’s genuinely helpful and empower you to make decisions that are best for your circumstances.
How Can I Tell if an Advisor Is Trustworthy and a Good Fit?
First and foremost, verify your prospective advisor’s qualifications and legitimacy through the SEC’s Investment Adviser Public Disclosure platform or FINRA’s BrokerCheck. From there, you can determine if your financial advisor is trustworthy and a good fit for your needs by asking the following questions:
- What are their core values? Look for an advisor interested in developing long-term relationships, not just commission.
- What is their payment model? Make sure you’re comfortable with their fee structure. Transparency in what, when, and how you’ll be paying is key.
What is their professional background? Ideally, your financial advisor will have knowledge and experience with clientele and circumstances similar to yours. Professional financial certifications, such as Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP), can further signal their expertise and commitment.
The Bottom Line
Gen Z’s overall reluctance to seek out professional financial advice is understandable, but relying solely on DIY approaches is a risky strategy. Tech-driven advisory models, relatable digital content, and more flexible payment options can encourage Gen Z adults to explore professional guidance, which will, in turn, help them build strong financial foundations while they’re young.
