personal finance influencers share tips and money strategies with their followers through social media platforms, podcasts, and blogs. Millennials and members of Gen Z frequently turn to channels like TikTok, Instagram, Reddit, and YouTube when looking for ways to improve their financial situation. While receiving free money tips influencers can be a cost-conscious move, it’s important to know how to spot potential scammers, fakes, and fraud.
- Personal finance influencers share money information and advice with their followers through social media channels, blogs, and podcasts.
- Professional financial education or experience is not necessarily a qualification to become an influencer; many draw on their own experiences instead.
- Financial advice offered by influencers may be free, but it may not always be accurate or appropriate to your individual situation.
- Supplementing advice from influencers with guidance from a professional financial advisor can help you create a solid plan for managing money.
What is a personal finance influencer?
TO personal finance influencer is someone who uses social media platforms to offer money advice and information to his followers. These are often ordinary people who use their own experiences with money to help others solve their financial problems. While some influencers may have a background in financial services, such as working in banking or being a Financial Advisor—is not a requirement to become one.
Personal finance influencers create content related to different financial topics and provide it to their followers for free. This content may include blog posts, social media posts, podcasts, financial “printables” (downloadable PDF files that you can print), e-books, guides, courses, workshops, and webinars. Some of the most popular channels for financial influencers include:
- tik tok
Influencers can also create their own blogs or websites to promote their content. They can monetize their blog and/or social channels in a variety of ways, including participating in affiliate marketing, run ads, sell digital or physical products, charge fees to access premium content, and create sponsored content. Some influencers may also offer coaching services for a fee.
Who uses social media for financial advice?
Anyone can search social media for financial tips and advice, but it’s particularly appealing to younger adults looking for content that’s easy to consume and understand. A survey by the National Association of Personal Financial Advisors found that more than a third (39%) of Americans under the age of 65 get financial advice online or from social media, while more than a quarter of Gen Z get money tips through social media platforms
In terms of the most popular social media outlets for financial advice, here’s how they rank:
- Sixty-three percent of Gen Z Americans and 71% of millennials use YouTube to discuss financial planning.
- Fifty-six percent of Gen Z Americans search for short financial videos on TikTok.
- Thirty-three percent of Gen Z millennials and young adults say Facebook has influenced their money decisions.
- Thirty-two percent of millennials and Gen Z adults cite Instagram as having an impact on their financial decision-making.
As mentioned, young adults are also turning to Reddit and Twitter as innovative options for financial advice. Part of the appeal may lie in the fact that much of this information is offered free of charge. That may be more appealing to young adults, who prefer to avoid paying 1% to 2% in annual management fees that financial advisers usually charge.
Another attraction is the relationship. A 20-something struggling to increase their income or pay off student loans can relate more to a 30-something who has successfully paid off debt with side hustle than a 60-year-old financial advisor with a seven-figure account. net worth. Similarly, women, people in the BIPOC community, people who identify as LGBTQ+, and people with disabilities may seek out personal finance influencers who share similar backgrounds rather than seek help from an industry that is still significantly lacking in diversification.