Scroll through any social media platform today—Instagram, TikTok, YouTube, or even LinkedIn—and you’ll likely stumble upon someone talking about money. From crypto tips to side hustles, investing hacks to FIRE (Financial Independence, Retire Early) strategies, financial influencers are everywhere. They speak in catchy soundbites, show off glossy lifestyles, and make managing money look easy and fun.
But with so many voices offering advice online, how do you know who to trust? More importantly, should you follow them at all when it comes to decisions about your personal finances?
In the age of information overload, this isn’t just a modern dilemma—it’s a crucial one. Because the wrong financial advice isn’t just annoying. It can cost you real money.
The Rise of the Finfluencer
The rise of financial influencers, or “finfluencers”, isn’t accidental. During the COVID-19 pandemic, retail investing exploded, with platforms like Robinhood, Trade Republic, and eToro seeing millions of new users. Meanwhile, lockdowns gave people more time to explore side incomes, investing, and budgeting.
Social media became the new classroom. But unlike a traditional classroom, anyone can claim to be a teacher. Some financial creators are certified professionals—CFAs, economists, or analysts. Many more, however, are self-taught investors, storytellers, or marketers riding a wave of virality.
According to a 2023 report by FINRA, nearly 60% of Gen Z investors say they’ve taken financial advice from social media. That’s a powerful influence—especially when only a fraction of those creators are held to fiduciary or professional standards.
The Value They Can Offer
To be fair, financial influencers have helped democratize access to basic financial education. Topics like budgeting, passive income, ETFs, or compound interest have reached audiences that traditional finance media rarely touched.
Many beginners feel more comfortable learning from a relatable creator than reading a complex financial report. In fact, some of the most-followed creators have sparked real interest in saving and investing among audiences under 30—a group historically disengaged from the financial system.
Some influencers also share their own personal finance journeys with honesty, transparency, and humility. This can be motivating for those who are just starting to save, get out of debt, or build their first investment portfolio.
The Risks You Need to Watch For
But not all content is created equal. One of the biggest problems in the influencer economy is the blending of education with entertainment—and worse, with promotion.
A creator may talk about a “top 5 stock to buy now,” but fail to disclose they’re being paid by that company. Or they might show enormous gains from options trading without mentioning the risks or the losses. Worse still, some promote products like forex scams, meme coins, or leveraged platforms with little regard for their followers’ financial health.
In 2022, the UK’s Financial Conduct Authority issued new warnings about influencers pushing unregulated financial products. The Italian CONSOB and other EU regulators followed suit, as pump-and-dump schemes tied to social media gained traction.
These are not fringe cases. In a world where virality often matters more than validity, it’s easy to get lured by charisma and ignore credibility.
How to Filter Signal from Noise
So, what should a beginner investor do?
First, look for transparency. Does the creator disclose partnerships or affiliations? Are they clear about risks and limitations?
Second, check their background. Do they have credentials, experience, or a history of responsible advice? You don’t need a finance degree to be helpful—but consistent, fact-based content is a must.
Third, be wary of absolutism. If someone tells you to “never buy bonds” or “only invest in gold” or “Bitcoin is the only safe haven”—pause. Real financial planning is about balance and nuance, not one-size-fits-all slogans.
Lastly, diversify your sources. Don’t build your financial strategy based solely on Instagram reels or TikTok. Read books. Follow economists. Learn from both data and experience.
A Better Way to Learn in the Age of Finfluencers
Following financial influencers isn’t inherently a bad idea. Some can be incredible entry points into a world that once felt closed off or intimidating. But like any financial tool, they need to be used with caution and critical thinking.
If you’re new to investing or financial planning, consider social media as the spark—not the full fire. Use it to inspire you, but build your knowledge with depth, from trusted, transparent, and well-rounded sources.
In the long run, the best financial advice is rarely the loudest. It’s the one that helps you stay invested, grow consistently, and sleep peacefully—whether or not it goes viral.
