ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Seeking Financial Advice From Influencers? Here are Red Flags to Watch out for

A recent poll conducted by Generation Lab and Morning Brew revealed that nearly 20% of college students turn to social media for financial guidance
PUBLISHED JAN 25, 2024
Representative Image | Pexels | Photo by Tima Miroshnichenko
Representative Image | Pexels | Photo by Tima Miroshnichenko

Social media dominates the consumption of information in the digital age and the way it is used in the real world. Among influencers talking about everything from fashion to beauty to diet and healthcare, there are also those who provide investment insights as well as know-how on savings and personal finance. A recent poll conducted by Generation Lab and Morning Brew revealed that nearly 20% of college students turn to social media for financial guidance, and TikTok in particular, has become a hub for financial advice with 34% of Generation Z relying on the platform. While social media can be a valuable source of financial knowledge, it has also become a breeding ground for scams orchestrated through finfluencers doling out dubious advice and misinformation. To stay vigilant in such an environment, these three key signs can help netizens steer clear of shady influencers.

Pixabay | Pexels
Pixabay | Pexels

The allure of quick and big returns can be tempting, but if an influencer's advice seems too good to be true, it could be a red flag. Get-rich-quick schemes or overnight success stories rarely align with reputable personal finance strategies. Quick fixes in personal finance often involve more risk than reward, and in the world of financial planning, patience, and careful consideration are virtues.

Don't fall for fake Amazon calls, it's a TRAP. Follow these precautionary measures and stay woke|Pexels
Don't fall for fake Amazon calls, it's a TRAP. Follow these precautionary measures and stay woke|Pexels

Financial influencers who adopt extreme stances or speak in absolutes, especially when it comes to handling debt, should be approached with caution. A one-size-fits-all approach to managing debt must be avoided since all debt is not the same. While some influencers may advocate paying off all non-mortgage debt before building an emergency fund or investing, a nuanced approach is recommended.

Cover Image Source: Pexels | Photo by Karolina Grabowska
 Image Source: Pexels | Photo by Karolina Grabowska

Financial influencers offering a single solution for every financial woe may lack the nuance required for effective financial planning. A uniform fix for diverse financial issues, such as promoting life insurance as a panacea for various financial goals, is unlikely to be sound advice. Personal finance is inherently multifaceted, and a one-size-fits-all solution may not address the unique circumstances of each individual. Vigilance is necessary when influencers present a singular solution as the answer to all financial challenges.

To discern credible financial advice from influencers, first check their credentials. Financial professionals are likely to showcase their certifications, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), in their profiles. Being regulated by organizations and regulatory agencies adds a level of accountability and ensures that influencers adhere to industry standards. Look up a financial professional's track record on platforms like BrokerCheck to assess their past performance and potential red flags.

But credentials alone might not tell the whole story, making it essential to investigate an influencer's background, to uncover any notable complaints or concerns. Understanding how the influencer generates income is crucial. If their revenue is tied to selling specific products, there might be a bias in their recommendations.

MORE ON MARKET REALIST
The rising star of the show's Prime Video spinoff could take over as the full time host.
1 day ago
Rick who couldn't tell the difference between Pokemon and Charizard lost out on a deal of a life.
1 day ago
The guest later happily gave it away for free to a Folk Americana Roots Hall of Fame collection.
1 day ago
The guest had stumbled into the rare artifact online and didn't have to shell out a lot for it.
2 days ago
Jennings answered the question that was making the rounds on social media for quite some time.
2 days ago
While her letter picks gave her just one clue, Angie nailed the final puzzle in seconds.
3 days ago
While the player wasn't too bothered with the loss, fans didn't seem to let it go.
3 days ago
This wasn't the first time that a contestant made a fool of himself on the show.
4 days ago
Even the stingy star of the show, Rick Harrison couldn't resist paying top dollar for the item.
4 days ago
Kevin O'Leary's deal did offer more capital but didn't align with Strauss's goals.
5 days ago
Harvey was waiting for a long time for someone to give that answer.
6 days ago
All the guest could say was, "I am never going to be able to talk to my wife again."
7 days ago
The TikTok creator claimed that the brand is trying to gain attention, but some viewers disagree.
Apr 16, 2025
Harris made a last ditch attempt for the 'Holy Grail' item but it didn't go as he expected it to.
Apr 16, 2025
Jay Tope, who lost $75,000 earlier in the week, redeemed himself while playing with the star.
Apr 16, 2025
While the question was direct, the entrepreneurs kept beating around the bush.
Apr 15, 2025
Fans are posting videos of the game that they discovered at Costco retail stores.
Apr 15, 2025
Catherine also got some help from her mother who was sitting in the studio audience.
Apr 15, 2025
As David walked up to the host, Carey immediately noticed his clothes and said, "What a great shirt!"
Apr 15, 2025
Even the fans agreed that the answer to the puzzle was just too random for someone to guess.
Apr 14, 2025