Social Media Channels High Income Consumers Use for Financial Guidance

Younger high income (YHI) consumers (18 to 44, annual household income >= $120K) think about wealth differently than their older high-income (OHI) counterparts (45 to 76, annual household income >= $120K). Although the future of wealth rests in the hands of millennials and Gen Z, many wealth and asset management firms have been slow to adapt marketing practices that cater to the new digital demands of this burgeoning cohort.

Consider the following:

• Soon to be wealthy. Projections show that the generational share of wealth will shift to nearly 50/50 by 2030, with millennial and Gen X wealth surging significantly, while boomer and silent generation wealth recedes.
• Financially engaged. Sixty-eight percent of YHI consumers indicate that they constantly adjust their financial goals.
• Savers and investors. Younger consumers allocate a greater proportion of their monthly income to savings and investments compared to older generations.

YHI consumers often struggle to find the information they need to make informed personal finance decisions and one important place they’re turning to is social media platforms. 

Who Uses Social Media for Financial Guidance?

Nearly 40% of YHI consumers agree that social media plays an important role in guiding their financial decisions. This is a significantly higher response rate when compared to the total U.S. population and OHI consumer segments. Why does this matter? For wealth management marketing leaders or financial advisors targeting H.E.N.R.Y.s (high earner, not rich yet) or the emerging affluent, knowing which channels to focus on is critical to your social marketing strategy.

Which Social Media Channels Are Most Relied On?

Although YHI consumers are more reliant on social media channels than OHI consumers, both age brackets favor YouTube and Facebook as their top channels of choice when gathering financial guidance. YHI consumers are also likely to turn to other popular social media platforms like Instagram and Twitter, and less conventional platforms like Reddit and Tiktok. Meanwhile, OHI consumers concentrate their attention toward YouTube, Facebook and LinkedIn, avoiding most other platforms altogether.

Wealth and asset management marketers already rely heavily on social media marketing as a means to garner credibility and reach, generating 16.4 million website visits in a 12-month period across just seven social media channels. Although the bulk of site traffic from social channels among Wealth and Asset Management Index brands stems from established platforms like YouTube and Facebook, opportunities exist in less conventional channels like Reddit or TikTok.

For more detail, read Harness Wealth Management Marketing Tactics That Resonate With Younger High-Income Consumers (subscription required).