Following news this week that the FCA is taking action against finfluencers who may be illegally promoting financial products, Sarah Pennells, consumer finance specialist at Royal London, expresses concerns about relying on social media for money management tips.
“Many money bloggers and finfluencers use social media as a way of sharing information about their personal experience of managing money, and this can resonate with people in a powerful way.
“Our own research shows that one in four people aged 18-34 had turned to social media for information about their finances in the last two years, and that was second only to the numbers who’d asked friends and family for advice.
“The problem is that while there is lots of useful information on social media, it can be hard, if not impossible for people to know what’s accurate and what’s incorrect. The bigger concern is that some finfluencers may be promoting financial products when they aren’t authorised or pushing risky investments.
“Seeking advice from a financial adviser can help you keep your money plans on track. They can help you build a picture of your overall personal financial circumstances and identify and prioritise the areas you should focus on.”
