James Royal, Ph.D., Bankrate.com
Almost a third (30%) of American adults (30%) who were looking for financial advice in 2023 turned to social media, according to Bankrate’s Financial Security Survey. Young Americans are more likely than average seeking financial advice from social media, and can pull them apart in the wrong direction during a critical early savings year where they can build wealth.
Social media may be a common way to access low-cost financial advice, but it is a terrible resource for several reasons. Here’s the reason.
1. Financial advice often comes from non-experts
Anyone – literally anyone – can claim to be a social media financial expert and offer advice when trying to attract an audience. But it’s not that to exist on social media and declare yourself a financial expert.
“Social media is full of misinformation,” says Jeff Bush, financial advisor at Elysium Financial in South Jordan, Utah. “The so-called experts usually lack the education and qualifications to give such advice.”
Some worst-case scenarios could be that the so-called advisors are telling them to do something criminal.
Therefore, it is important to check your social media personality credentials and working with a certified financial advisor will help you get good advice.
2. Financial advice may be selfish
Financial advice from social media tends to be selfish, and “Finfluencers” may be trying to sell you something that personally profits, rather than giving quality advice.
Brad Clark, president and founder of Solomon Financial in Carmel, Indiana, said: “If it’s one of these two, there’s probably a fundamental reason why it’s shared. You’re going to sell something based on this fear or greed.”
So social media may try to show how rich you can be if you buy Finfluencer’s cryptocurrency or if you buy an asset building system that will personally benefit you. Of course, they may also advertise legitimate financial products that will give them a large fee.
“If someone really has a ‘rich quick’ scheme that really works, they’ll do it and get rich and stop wasting time trying to sell other people,” Clark says.
3. Financial advice may not be tailored to your needs
Even if your social media financial advice is accurate, that doesn’t mean that it is specifically the right advice for you. Your particular financial situation is different from that of others and you need advice that suits your needs.
“When it comes to finances, what might work for people might not work for someone else,” Clark says. “That might be good advice for some people, but it could be terrible advice for others.”
Bush agrees: “Goals, savings, debt, risk tolerance should all be considered, and each one is different for each person.”
So social media may be the right advice for someone, but it’s not you.
Where to seek good financial advice
If you are looking for good financial advice, it is important to understand who is offering it.
A high quality website with qualified authors and advisors
A high-quality website with qualified authors and advisors can provide excellent financial advice. Sites such as Bankrate have experienced writers, including Certified Financial Planner (CFP) designations, and often qualified writers, which can provide valuable insight into financial issues. Such a qualified advisor can provide accurate financial advice that may be useful to you.
Despite these positives, many individuals have different financial situations where custom advice may be required. Therefore, you need to carefully assess whether more customized advice is needed.
Trustee Financial Advisor
A fiduciary financial advisor who is always acting in your interest is the solution for those looking for the best advice. The best thing to do here is to find a trustee advisor who only accepts paid clients. This setup means you need to pay for financial advice, but this wage structure provides the best opportunity to align your advisor’s interests with your own interests. If you’re not paying financial advice, it could be because they’re really disguised salespeople.
“A financial advisor who is a trustee brings a lot of value,” says Clark. “Their goal is to understand the client’s situation and create recommendations to help them achieve their goals.”
“An important benefit of working with a financial advisor is receiving a customized financial plan,” says Bush. “Personalized plans allow our advisors to understand your personal goals and provide support in the middle of your life.”
A well-aligned trustee advisor will help you make the financial decisions that make the most sense for your situation. And the best financial advisors can help you build wealth in the long term. Here are four of the most important tips to find a financial advisor that is consistent with you.
Conclusion
Those looking for the best financial advice for a particular situation can look to top financial advisors tailored to their needs and avoid questionable social media advice.
“You need to be careful, get the information you find and talk to your own financial advisor,” Bush says. “This is the safest way to build a solid financial plan and avoid costly mistakes.”
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors recommend that past investment products performance is not a guarantee of future price increases.
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Original issue: March 22, 2025 9am Edit
