What’s helpful and what’s potentially harmful
Social media has changed the way people learn about money. From budgeting tips to investment strategies, financial influencers (often called “finfluencers”) are reaching millions of viewers, especially younger audiences, through platforms like TikTok, Instagram and Facebook. Their videos are quick, engaging and often make complex financial topics feel more approachable.
But not all advice online is created equal. A recent survey found that more than one in four social media users have been misled by inaccurate financial information. While some finfluencers genuinely want to help, others may lack the training or credentials to offer sound guidance. And in some cases, the content may be designed to sell rather than serve.
What to watch out for
Many finfluencers do not hold professional certifications, such as Certified Financial Planner (CFP) credentials or investment advisor licenses. Yet they still offer advice that can be oversimplified or misleading. Some promote financial products or services for commissions without clearly disclosing their relationships, which violates Federal Trade Commission (FTC) rules.
Even more concerning, some posts may be tied to scams. Fake investment ads, phishing links and pressure tactics often target a viewer’s fear of missing out. Regulators like the SEC and FINRA have started cracking down on influencers who make unrealistic claims or fail to disclose risks.
General advice can also be risky. What works for one person may not work for another, especially when it comes to investing or managing debt. Without understanding your unique financial situation, even well-intentioned tips can lead to costly mistakes.
How to protect yourself
Start by checking credentials. Tools like FINRA’s BrokerCheck can help you verify whether someone is licensed or registered. Look for clear disclosures, such as #ad or “sponsored,” and be cautious with affiliate links.
Always cross-check advice with trusted sources like the Consumer Financial Protection Bureau (CFPB) or the North American Securities Administrators Association (NASAA). Be skeptical of promises like “guaranteed returns” or “no-risk investments.” If it sounds too good to be true, it probably is.
For important financial decisions, consult licensed professionals rather than relying solely on social media. And if you believe you’ve been misled, report the issue to the CFPB to help protect others.
Your financial future matters
At Alpine Bank, we believe financial education should be empowering, not confusing. Social media can be a great starting point, but it’s no substitute for trusted advice. By staying informed and asking the right questions, you can make confident choices that support your goals.
Contact Alpine Bank Wealth Management today to learn more about how we can support your financial journey. Let us help you find the peace of mind that comes with working with a trusted financial partner.
*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the bank
