Finfluencers: Do They Help or Hinder?
From budgeting hacks to “get rich quick” investment tips, financial influencers are changing the way women talk about money. However, can we really trust everything that we see on our feeds?
Take a scroll through Instagram, TikTok or YouTube and you’re likely to come across them – the finfluencers.
They’re the social-media personalities, turning money matters into bite-sized videos about saving, investing, paying off debt, buying a home and building wealth. For many women, they’re making conversations about money feel a bit less intimidating and much more relevant.
As we all know there are at times, another side to the story. Behind the polished videos and confident advice, not every finfluencer is a qualified financial expert. Some may be promoting products, chasing clicks or making money from the very said advice, which they give.
Now it begs the question… Are finfluencers helping women become more financially confident? or, Potentially leading them down the wrong path?
Making money talk less scary
For years, personal finance could feel like an exclusive club. The whole space of dealing with our money could be filled with complicated terminology and intimidating spreadsheets. Finfluencers have helped to change this.
A creator explaining compound interest in a 60-second video can make the concept feel far more approachable. A post about creating a realistic monthly budget, might encourage someone to finally take control of their spending. Additionally as we see other women openly discuss salaries, debt, investing and financial goals, this can help break the silence around money.
It is the accessibility that matters.
For women, having financial confidence can be an important part of independence. It is learning how to manage money, understanding investments and planning for the future, that can provide a greater sense of control over our lives.
When inspiration becomes mis-information
The problem can begin when entertainment is then mistaken for expertise. It is always a good thing to have a cross reference and other sources of information including a financial expert, rather than just relying on one entity.
Social media rewards content that is dramatic, simple and attention-grabbing. “Three investments that could make you rich” is likely to attract more views than “Understanding your personal risk tolerance”.
Financial decisions, however, are rarely that simple, as there is no one size fits all solution.
What works for one person may be completely unsuitable for another. An investment that makes sense for someone with a high income and substantial savings may be inappropriate for someone who is paying off debt, or even struggling to cover their everyday expenses.
There is also the question of qualification, since being good at explaining money, or having made money yourself, does not automatically make someone a financial adviser. Heck if not there’d be so many more persons that we can trust and listen to out there today.
Follow the money
Before taking financial advice from anyone online, it is worth asking one simple question:
How does this person make money?
Some influencers earn income from sponsorships, affiliate links, courses or commissions. That doesn’t automatically make their advice bad, but it does mean we should understand whether they have a financial interest in what they are recommending to you the person watching.
A creator enthusiastically promoting a particular investment, app or financial product may not be giving a completely independent recommendation. If a post promises guaranteed returns, effortless wealth or even some secret investment strategy that “banks don’t want you to know about”, consider that as a serious red flag.
The comparison trap
There is another danger that has little to do with investment advice and everything to do with social media and its impact on persons. Finfluencers often present carefully curated versions of financial success. Maybe it is the designer handbag, the dream home, or the holidays and the investment portfolio supposedly generating thousands every month.
It can leave viewers wondering: Why am I not doing this too?
Be minded that social media rarely shows the full financial picture. We don’t see the debt, family support, inherited wealth, business expenses or even the years of hard work that may sit behind the lifestyle. Financial well-being isn’t a competition. Building an emergency fund, paying down debt or simply learning how your pension works may be a much bigger achievement than buying that latest luxury item.
Should we unfollow finfluencers?
Not necessarily – short answer. The best finfluencers can be excellent financial educators. They can introduce you to concepts, as well as to encourage healthy money habits and give people the confidence to ask even better questions. The trick is knowing where inspiration ends and the financial decision-making begins.
Use social media to learn, and as a tool. Do not rely on a single influencer to decide, what you should do with your money. Check important claims against trustworthy financial institutions or independent sources, read the small print and consider getting professional advice when the stakes are high, and most importantly, remember that your financial life is personal.
Your goals, income, responsibilities and tolerance for risk are unique to you. No 30-second video can know your circumstances better than you do.
Let’s Get Going Then
Finfluencers have opened the door to conversations about money that many of us were never taught to have, and that is also a good thing. Please note that financial confidence isn’t about blindly following someone else’s formula for success. It’s about asking questions, the right questions especially within your own circumstances, doing your own research and making informed choices.
So the next time a financial guru appears on your feed promising to transform your finances, don’t immediately reach for your wallet. Reach for your questions first.
