Social media is a widely used resource. It provides quick access to information and ideas from recipes, decorating, and educational resources. There is also a wide range of financial topics.
I recently read an article in Kiplinger’s Personal Finance titled Should You Take Financial Advice From a Finfluencer? The article provided insight into what you might find regarding financial topics on social media, as well as some precautions.
Consider this: social media offers a platform (YouTube, Facebook, Instagram, X, Pinterest) where anyone can create content and appear to be a financial guru. The challenge is determining who is qualified to provide financial advice and who is bluffing.
Let’s say you are looking for ideas on budgeting. That’s a pretty straightforward topic, and the information you receive can be easily applied to your situation. However, suppose you are looking for something more complex, for instance, ideas on investing, creating a viable financial plan, or preparing for retirement. In that case, you may find good information, but it’s general and not centered on your values, goals, or your financial situation.
It is true that knowledge is power, and everyone should gain as much financial education as possible. However, we strongly encourage everyone to use a financial advisor, preferably a Certified Financial Planner who is also a fiduciary – this represents all advisors at Smedley Financial. An advisor can better understand what you are trying to accomplish and apply their experience and education to provide you with tools and ideas that can lead you to financial success.
The downside of getting advice on social media is what may not be so obvious to many people. It is that scammers also use social media where they appear genuine and knowledgeable. This provides them with unjustified credibility. After all, how can you tell if someone is credible by watching a video? Over social media, scammers create a sense of trust. Once they have your confidence, it is easy for them to get to your wallet.
You are the first line of defense when it comes to protecting your hard-earned money. Protect your personal information. Be cautious when providing your email and phone number. Don’t fall prey to social media scammers. Please call us if you ever have a question about a financial topic. We are here to help you reach your goals!
We wish you and your family good health, happiness, and a prosperous new year!
