Money Saving Monday: Gen Z turns to AI for financial advice, but experts urge caution
Study finds 80% of young Americans use chatbots for money decisions, with mixed results.
PHOENIX — A growing number of young Americans are skipping the financial advisor’s office and opening a chat window instead, turning to artificial intelligence for help managing debt, building budgets and navigating their financial futures.
According to Fortune, 80% of Gen Z and millennials now use AI for financial advice. More than half reported they made poor financial decisions as a result.
For 25-year-old Emma Mannal, the technology proved to be a lifeline. After graduating from college with both student loan and credit card debt, she turned to ChatGPT to help sort through her repayment options.
“There were so many methods of repaying that debt, and I wanted to figure out the best one for me,” Mannal said. “It did give me some pretty good advice to get the ball rolling.”
Over the next six months, she paid off $7,000 in debt — a result she credits in part to the strategy AI helped her map out.
But not everyone’s experience mirrors Mannal’s.
Financial professionals say there are important boundaries users should understand before handing their money questions over to a machine.
Angelica Baeza, digital marketing manager for TruWest Credit Union, said AI performs well within a specific lane.
“AI is really good for understanding financial jargon, for planning out basic budgeting tips and even for getting advice on how to improve your credit score,” Baeza said.
But she draws a hard line when it comes to sensitive information, saying users should never enter a social security number, full name or any personally identifiable information into an AI chatbot.
“Anybody can use that information. It’s out there on the internet after that,” Baeza said.
She also flagged the risk of outdated data, noting she once found AI-generated information that appeared credible, but upon further research, it turned out to be incorrect.
“Any information you get from AI, you absolutely need to cross-reference with other sites,” she said.
When financial decisions become more complex — involving personal circumstances, long-term planning or sensitive data, both experts and everyday users agree that human advisors remain the stronger option.
Baeza said a licensed financial professional can offer something AI fundamentally cannot: a tailored conversation built around a client’s specific situation.
“They can offer more tailored conversations and better planning around your own information,” she said.
Mannal echoed that sentiment, even as someone who benefited from AI assistance.
“Someone who can give you more tailored advice is probably a better bet,” she said. “But if you’re confused and don’t know where to begin, I think AI can be a great first step.”
Her broader takeaway reflects what financial professionals have been saying all along — discipline, verification and knowing when to seek human expertise are just as important as the tool itself.
“It also requires you to be very disciplined to have the plan in place,” Mannal said. “Definitely approach with caution.”
Baeza offered a similar closing thought, summing up the tension between AI’s growing popularity and its real-world limitations.
“Use it in small doses,” she said, “because popular does not always mean accurate.”
If you have any money-saving topics you would like us to look into, email us at money@12news.com.
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