Nearly one-third of American adults now trust social media for financial advice: Why that’s a terrible idea
By James Royal, Ph.D., Bankrate.com
Nearly one-third of American adults (30%) who looked for financial advice in 2023 turned to social media, according to Bankrate’s Financial Security Survey. Younger Americans are even more likely than the average to seek out financial advice from social media, potentially setting them off in the wrong direction during their crucial early saving years, when they could get a jump-start on building wealth.
While social media may be a popular way to access low-cost financial advice, it’s a terrible resource for a number of reasons — here’s why.
1. Financial advice often comes from non-experts
Anyone — literally anyone — can claim to be a financial expert on social media and offer advice as they try to attract an audience. Having a presence on social media and declaring yourself a financial expert doesn’t make it so, however.
“Social media is flooded with misinformation,” says Jeff Busch, financial adviser at Elysium Financial in South Jordan, Utah. “So-called experts typically lack education and credentials to give such advice.”
