Trending
Written by: Nigel Green | deVere Group
The rise of ‘finfluencers’—financial influencers who leverage social media platforms like TikTok, Instagram, and YouTube to share personal finance tips—has revolutionized how younger generations, particularly Gen Z, engage with financial advice.
These content creators have tapped into the growing demand for digestible, relatable, and accessible financial information, often breaking down complex topics like investing, budgeting, and credit management into easy-to-understand snippets.
But with this surge in popularity comes both opportunity and risk.
While finfluencers can play a pivotal role in guiding young people toward smarter financial decisions, it’s crucial to ensure that their advice remains grounded in expertise and ethics.
We must strike a balance: embracing the unique value that finfluencers offer while ensuring they don't replace professional financial advice or devolve into a modern version of ‘the guy in the bar’ offering half-baked tips.
Why finfluencers matter for Gen Z
Gen Z, born between the mid-1990s and early 2010s, has grown up in the age of digital media. They are comfortable seeking information online and often turn to social media for advice on everything from health and fitness to career choices and, increasingly, personal finance.
Traditional financial institutions have often struggled to engage this generation, as they tend to communicate in jargon-filled language that feels distant and unapproachable. Enter finfluencers.
Finfluencers excel at making financial education relatable. They talk about money in a way that resonates with their followers: casual, direct, and often personal. This generation is drawn to authenticity and relatability, and finfluencers can provide that in spades.
Whether it’s through Instagram posts about saving for a first apartment, YouTube videos on paying off student loans, or TikToks breaking down stock market trends, finfluencers have created a new avenue for financial literacy that fits seamlessly into the lives of Gen Z.
And they meet Gen Z where they already are—on social media. Unlike traditional financial advisors, who may require scheduled appointments and formal meetings, finfluencers provide on-demand financial content that can be consumed anytime, anywhere. This accessibility is a key driver of their popularity and effectiveness.
The potential for finfluencers to drive positive financial behaviors is enormous.
By introducing financial concepts in a digestible format, finfluencers can encourage their followers to seek more in-depth guidance from professionals.
For instance, after learning the basics of investing through a YouTube channel, a young person might be more inclined to consult a financial advisor to help them build a tailored investment strategy.
In this way, finfluencers can act as the first step on the ladder toward more sophisticated financial planning.
The danger
However, while finfluencers have tremendous potential, there are inherent risks that must be managed.
The danger is that without proper oversight, finfluencers could offer financial advice based on hearsay, speculation, or incomplete information. Unlike licensed financial advisors, many finfluencers aren’t regulated and lack the qualifications to provide sound financial advice.
The stakes are high. Poor advice from a finfluencer can lead to significant financial consequences for their followers, from missed investment opportunities to harmful debt management strategies. Furthermore, the rapid-fire nature of social media content can sometimes oversimplify complex financial topics, leading to misunderstandings or misguided actions.
This is where the role of regulation and ethical standards becomes crucial. While finfluencers can democratize financial knowledge, they must also be held to a standard that ensures their content is accurate, responsible, and transparent.
Financial institutions, regulatory bodies, and the social community itself must collaborate to establish guidelines that protect consumers without stifling the creativity and relatability that make finfluencers so effective.
By striking the right balance—leveraging the strengths of finfluencers while safeguarding against the pitfalls of unregulated advice—the financial industry can embrace this new wave of influencers as powerful allies in the mission to improve financial literacy and help young people build brighter financial futures by working with a professional advisor.
Related: Advisors Should Engage in Crypto Conversations With Clients