Once upon a time, getting financial advice meant booking an appointment with an accountant or an advisor at a bank or a wealth management firm. Today, you’re just as likely to find someone breaking down investment strategies on TikTok in front of a ring light. These “finfluencers” form a new generation of social media creators shaping how millions learn about money, often from the comfort of their bedrooms. But not without risks.
According to the World Economic Forum, interest in financial content on platforms like YouTube, Instagram, and TikTok has exploded, especially among younger generations, such as Gen Z and Millennials. This attention resulted in practical action, as confirmed by the institution: retail investing volume has doubled over the past 10 years, with 19.5% of all stock market shares traded coming from such investors in 2020.
On the one hand, these influencers explain basic concepts as budgeting, credit scores, savings accounts and even cryptocurrency, that can help people to navigate their personal finances. But this type of “creator” also offer tips on investing, often framed as relatable “life hacks” rather than proper financial planning suitable for the audience on the other side of the screen. Orientation is standardized, which can be another problem.
The appeal is obvious: access, informality, and entertainment. While traditional advisors often come with jargon and a paywall, finfluencers “translate” the concepts to people without formal education on the field and serve up advice in a casual tone. More importantly: free of charge. In a world where financial literacy is low and skepticism toward institutions is rising, social media feels like a democratic arena.
Risks and Consequences
But there’s a catch. According to a new report by Edelman Financial Engines, 27% of financial advice on TikTok was misleading or outright false. From promises of quick returns to unregulated investment tips, bad advice can spread on social media faster than a market crash. And unlike licensed professionals, most finfluencers don’t carry fiduciary responsibility. Meaning: if you lose money, that’s on you.
Still, the distrust of traditional financial institutions is not a new phenomenon. A CFA Institute report from last year revealed that younger investors are more likely to seek advice from digital channels than from professional advisors—many of whom they view as inaccessible or misaligned with their values. In a way, finfluencers are just filling this gap.
Regulation
Platforms are beginning to react. TikTok and Instagram have introduced rules requiring financial content to be tagged appropriately, and some creators are partnering with licensed professionals to lend credibility to their content. But regulation still lags behind influence. There’s no formal vetting process for going viral.
Financial firms are watching closely. Last year in the UK, te Financial Conduct Authority (FCA) charged nine individuals, including former reality TV stars, for promoting unauthorized financial schemes to their combined 4.5 million social media followers. And education also plays a central role in this discussion.
A few weeks ago, OCDE promoted the Global Money Week. “Finfluencers” was one of the topics opened up for debate during some of the conferences. Most participants emphasized the dangers of trusting financial advice from unregulated social media personalities, warning against promises of quick wealth.
The core question remains: can finfluencers replace traditional advisors? For most experts, the answer is no—but they can complement them. Social media is great at raising awareness and sparking curiosity. But when real money is on the line, especially for complex decisions like retirement planning or tax optimization, expertise still matters.
