ORLANDO, Fla. – Instead of stepping into a financial office, many people are logging onto social media for money-saving steps. Financial influencers or “Finfluencers” are everywhere, attracting young people looking to invest.
In fact, 25% of 18-to-24-year-olds are using social media when seeking financial advice. But experts warn you to be careful who you trust.
More and more millennials and Gen-Z’ers are turning to Finfluencers for financial advice. They’re social media influencers who focus on everything, from money-saving challenges to advice on how to invest in the stock market.
#Fintok, which features financial advice videos, has 4.9 billion views.
“It’s hard to know, what’s good advice. The ones that worry me the most are the ones that are about very specific, stocks for example,” said Chet Cowart, Financial Planner.
Videos promoting ways to ‘get rich quick’ are also popular right now.
“It’s just what’s going to get me these returns right now. And that’s a dangerous game to play,” explained Cowart.
Finfluencers don’t need any financial qualifications and they are not regulated. Finfluencers make money via sponsored posts, referral fees and by promoting financial products. So, it’s important to not assume they’re an expert.
Also, be aware that Finfluencers may look popular, but they can buy fake followers. It’s also important to be scam and risk-aware by always doing your own research and starting when you’re young.
“Realize that you will be, old one day. Planning for the future is important and the younger you start the better off you’ll be,” said Cowart.
The Federal Trade Commission now requires influencers to disclose their material connection to what they are promoting on social media. One of the best ways to avoid bad advice that could cost you in the long run, go through a regulated financial advisor. They can guide you with your immediate investing goals as well as how you want to start saving for the future.