Social media has evolved rapidly from a platform to keep track of friends and build community to a place where we find gossip, news, and life advice. “Fin-fluencers”—financial influencers who share wealth-building tips, investment strategies, and money hacks—have become increasingly popular. A TIAA study found that about one-third of all new investors get their investment ideas from social media.
While many influencers provide valuable insights and success stories, others spread misleading information or even harmful advice that can have serious consequences, potentially derailing your financial plan or leading to poor investment choices. Many of them have no financial background, designations, or education; they are just sharing what has worked for them, or what they think viewers would react to seeing.
With so much financial “noise” out there, it can be difficult to decipher the good advice from the bad. Following the wrong guidance can easily get you off track from saving for your future or retirement. Before acting on any financial advice you find on social media, consider these three tips:
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Check Your Source
Research the influencer’s background. What qualifications, education and experience do they have regarding the topic they are discussing? Do they have a formal education in finance, financial planning or investing? Do they hold any credentials such as CERTIFIED FINANCIAL PLANNER® certification?
Remember that social media is unregulated, and anyone can claim to be an “expert” in whatever they wish. Keep in mind that many influencers are more concerned with online engagement and follower numbers than the actual content they are producing.
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Look for Red Flags
View “fin-fluencers” like you would any form of media — they are trying to get eyeballs on their content. This may mean that what they say is designed to trigger you or get you to act instead of having your best interest in mind.
Be extra cautious of “guarantees” or pressure to “act fast.” Scammers often try to create a sense of urgency to make viewers react impulsively to enroll in their class, invest in their product or buy their “solution.” Investments always come with some level of risk, so be sure to do your due diligence before engaging in a program online.
Influencers are often paid to promote certain content. Are they promoting this solution because it is the best option for YOU or because they get paid to talk about it?
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Consider Working With a CFP® Professional
Social media is entertainment for the masses, not personalized advice. What you see on social media can be a good starting point for general financial education, but nothing is one-size-fits-all when it comes to money.
A CFP® professional can help you evaluate financial trends and strategies that work for YOUR unique situation. They take a comprehensive look at your entire financial picture to see if you are on track for meeting your goals, maximizing your future and managing risks that could trip you up along the way. This helps ensure your financial plan stays aligned with your priorities and doesn’t veer off course because of misleading advice.
If you want reliable advice tailored to you, engaging with a qualified financial professional could be a good next step.
Social media has made financial information more accessible, but it has also amplified the spread of misinformation. While many “fin-fluencers” provide helpful insights, their content is often general in a way that may not align with your unique financial goals. Take time to evaluate the source of the information, watch for red flags and think critically before acting on what you see online. The right financial decisions start with reliable information and a clear understanding of how it fits into your bigger financial picture and plan.
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