Should You Trust Financial Influencers?

Every day on social media, a new face promises a shortcut to wealth. One influencer shares an “easy” investing formula, while another poses with a rented Lamborghini to promote a questionable cryptocurrency. Meanwhile, certified financial professionals with years of expertise struggle to gain views on their carefully researched advice.

This is the paradox of today’s financial education landscape: quality advice is more available than ever, but bad advice spreads faster. A 2023 MIT study found that 72% of financial TikToks contained misleading or incorrect information, and the SEC reported a 300% increase in enforcement actions against financial influencers last year alone.

Finfluencers: Education or Exploitation?

The rise of #FinTok—with over 10 billion views—proves that people are eager to learn. Traditional finance often uses complex language, while finfluencers break down ideas in creative ways. Some offer real value: for instance, Humphrey Yang explaining Roth IRAs with taco analogies, or The Financial Diet making budgeting accessible for young women.

But there’s a darker side. In late 2023, "Bitcoin Brandon" was fined $1.2 million by the SEC for promoting unregistered securities without disclosing he was being paid $25,000 per post by crypto companies. Another example is "Stock Sista," whose “can’t lose” options trading course led followers to six-figure losses—while she personally made $3 million in course sales.

How to Separate Sense From Nonsense

To protect yourself, apply these three filters:

1. The Credential Check: Don’t get distracted by flashy content. Look for legitimate designations like CFP® (Certified Financial Planner) or CFA (Chartered Financial Analyst)—these require rigorous study, testing, and ethics. Use the SEC’s AdvisorCheck tool to verify credentials in seconds.

2. The Motive Test: Ask yourself: Are they trying to sell me something? If a “free” workshop leads to a $2,000 course or a stock pick just happens to be linked to an affiliate program, take a step back. As SEC Chair Gary Gensler says: “When advice smells like sales, your nose should twitch.”

3. The Reality Filter: Real financial advice doesn’t usually go viral. If someone’s promising 10x returns or “secret” loopholes, be cautious. If it worked that well, they wouldn’t need your likes. Compare that to fiduciary educators like The Plain Bagel, an SEC-licensed analyst who teaches why “get rich slow” actually works.

When to Swipe Left on Free Advice

While finfluencers can introduce useful ideas, they’re no replacement for professionals when dealing with complex financial issues:

• Tax planning: Missteps can cost you thousands in penalties.

• Retirement planning: Viral advice won’t factor in your personal health, lifestyle, or long-term needs.

• Debt management: A strategy for $5,000 in credit card debt may not hold up against $150,000 in student loans.

In 2024, the smartest approach is to use social media for inspiration, not instruction. There are trustworthy voices out there—like Meet Kevin for market commentary or Her First $100K for career-focused financial tips. But when it comes to major money decisions, turn to a fee-only fiduciary advisor, someone legally required to act in your best interest