Americans have more options than ever when they need financial advice — financial websites, influencers on social media, newspapers, and magazines. But the most popular place Americans turn first is still financial professionals like CFPs, CFAs, and CPAs, according to the 2024 Policygenius Financial Planning Survey.
However, while 26% of Americans would turn to financial professionals first, younger generations often turn to other sources. For example, adult members of Generation Z are 65% less likely to turn to a financial professional first with a question about their finances compared to baby boomers. Plus, Gen Z “zoomers” are nine times more likely than boomers to turn to social media first.
Financial professionals are still the go-to source for financial advice
More than a quarter of American adults (26%) said they would turn to a financial professional first when they had a question about their finances, ahead of other sources like their parents, news outlets, or search engines.
Favoring a financial professional for money questions was highly correlated with higher incomes. 39% of Americans earning $150,000 or more per year would turn to a financial professional first for financial questions, compared to just 19% of Americans earning less than $40,000 — a group that may have just as much need for professional financial advice. Instead, Americans earning less than $40,000 are more likely to have used “none of these” sources compared to other earnings groups (20% vs. 11%). Race is also a strong predictor: 30% of white Americans would turn to a financial professional first with money questions, compared to 20% of Black Americans and 21% of Hispanic Americans.
Favoring professional financial advisors is also linked to owning certain sources of wealth, including stocks, bonds, and real estate. Americans who would turn to a financial professional first for financial questions are more likely (46%) to own real estate than those who use some other source of advice (26%). Even among Americans earning less than $40,000 a year, those who would turn to a financial professional first are more likely to own real estate (23% vs. 15%).
Older Americans are also more likely to turn to a financial professional first. While 39% of boomers and 27% of Gen X (43 to 58) would look to professionals first, just 18% of millennials (age 27 to 42) and 14% of zoomers (age 18 to 26) would do the same. Members of Gen Z are more likely to ask family and friends their financial questions before other sources.
How Americans who favor financial professionals for money advice manage their estates
Americans who would turn to a financial professional first for financial questions are more likely to feel “very confident” their loved ones would be financially stable if they died today (38%), compared to Americans who would turn to another source of advice first (23%). The same holds true even for Americans earning less than $40,000 a year (29% vs. 20%).
Asking questions to a financial professional first is also correlated with different views on life insurance compared to people who turn to other sources of advice first. Americans who would talk to professionals first when they have financial questions are more likely to view life insurance mainly as a way to provide for their dependents. In contrast, Americans who wouldn’t turn to a financial professional first are twice as likely to view the main purpose of life insurance as a way to invest and grow money.
Millennials are the most likely to turn to social media first with financial questions
Only about 5% of Americans would turn to social media first when they have a financial question. But almost half of those that would are millennials (47%), and 30% are in Gen Z. Americans who would turn to social media first with financial questions are nearly twice as likely (28% vs. 15%) to own cryptocurrency compared to those who would use other sources of financial information. Americans who would turn to social media first are more likely to try financial hacks like envelope budgeting (29% have tried, compared to 14% of those who would turn to other sources of financial information first), day trading (24% vs. 11%), no-spend challenges (21% vs. 12%), and infinite banking (26% vs. 7%). They’re also more likely to feel proud of their finances (39% vs. 27%).
Methodology
Policygenius commissioned YouGov to poll 4,063 Americans 18 or older. The survey was carried out online from Oct. 16 through Oct. 19, 2023. The results have been weighted to be representative of all U.S. adults. The average margin of error was +/- 2%.
About Policygenius
Policygenius, a Zinnia company, is a one-stop insurance platform that makes it easy to compare and buy policies, get unbiased expert advice, and manage an insurance portfolio in one seamless digital experience. Alongside the intuitive enterprise technology solutions and insights offered by parent company Zinnia, an Eldridge business, Policygenius is helping create better end-to-end insurance experiences for shoppers, advisors, and insurers alike — and enabling more people to protect their financial futures along the way.
Infographics by Anna Konson
