You should also scroll back far enough to see their collaborations. Partnerships with other finfluencers and actual experts can give you some insight into a person’s strategy and beliefs around their work. You can see who they’ve worked with, what type of companies they deem as credible and what kind of advice they’ve historically given their followers. See sketchy-looking companies that the person probably doesn’t use themselves? Red flag.
Then ask yourself: Do you understand how this person earns a living? Is it clear when a brand partnership is occurring and does the influencer share their litmus test for taking on a partner? What gives them the credentials to be giving you the advice? Plenty of people use titles like “investing expert,” but what makes them an expert? Is it just that they do their own investing? Or have they formerly worked as a trader and have a Series 7, Series 63 and/or Series 65? Are they a certified financial planner or working as a financial journalist?
There is also a range of advice being given by finfluencers. Explaining how the stock market works or strategies used to invest is different from explicitly telling you which stocks to buy or what crypto and NFTs to purchase. Educating you and selling to you are two different propositions. The trick is to always question whether selling is being dressed up as educating.
In many ways, greater access to financial information and having a wider range of people who can communicate such information are good things. There’s now a greater chance you can get advice from someone who has had similar life experiences to you and can therefore better relate to how you and your family handle money.
The rise of influencers has also made talk of money less taboo. Having healthy, productive conversations around money can result in people learning important life skills such as negotiating, boundary-setting, saving and investing.
So, yes, there is a lot of quality advice to be found. You just have to weed out those looking to cash in on a trend.
This articlewas provided by Bloomberg News.