Financial influencers, or “finfluencers,” are shaping how people learn about money through social media. While some provide credible advice, others mix entertainment with education and may promote ineffective strategies. Spotting the difference is crucial for financial health.

Younger Americans are increasingly turning to social media for personal finance advice, with 42% using financial websites and social media. A Gallup survey found that adults aged 18-29 rely on friends and family for advice but also follow personal finance content creators.

Finfluencers can make money less intimidating and motivate financial stability. However, some misleading creators have led to regrettable financial decisions. Social media simplifies complex financial decisions, potentially sacrificing accuracy for speed and simplicity.

Online financial content can be educational and provide money-saving tips, but it’s vital to verify the source’s credibility and accuracy. Be cautious of “get rich quick” schemes and content that taps into fear or shame. Good financial education should empower, not pressure or mislead.

To vet information, check a finfluencer’s credentials and verify them online. Credentials like CFP®, CFA®, CPA, and RIA indicate expertise in specific financial areas. Titles like “money coach” lack legal meaning, so it’s essential to verify claims against trusted sources.

Credible finfluencers disclose sponsorships, affiliate links, and personal benefits from recommendations. Any incentive for a creator to promote a product should be viewed skeptically. The goal is to build confidence and knowledge to independently evaluate information.

Extreme financial claims, promises of guaranteed results, or one-size-fits-all strategies are red flags in finfluencer advice. Real-life financial decisions involve risks and uncertainty, so be wary of claims that sound too good to be true or leave out important details.

Read more at Yahoo Finance: The rise of ‘finfluencers:’ Can you really trust financial advice on social media?