We all know that we should be careful about what we read on social media; everything people post isn’t always true or accurate. But just because we know this doesn’t mean we can’t still be swayed, tricked or persuaded into doing things we normally wouldn't. Because of this, it’s especially important to consider how you may be influenced when it comes to financial misinformation.
Falsehoods and empty promises are out there, in the form of bone-headed tweets and posts about the latest tips regarding stock, investments, bank accounts, credit cards and loans.
It’s gotten worse over the last decade, says Andre Jean-Pierre, an investment advisor and managing director at Aces Advisors Wealth Management in New York City.
“Over the past ten years, I’ve noticed more and more people relying on social media for their investment and financial advice,” says Jean-Pierre.
He thinks that this is partially due to the pandemic.
“I believe that the DIY investor crowd, combined with a higher social media usage early in the pandemic, created the perfect environment for the rise of the social media ‘finfluencer,’” Jean-Pierre says, using a word that’s been coined to describe social media influencers giving financial advice to their followers.
Some of the advice, Jean-Pierre says, has been on-target, which, of course, only deepens the bond between finfluencers and their followers. But Jean-Pierre is also quick to note that plenty of financial advice that goes viral is inaccurate.
So if you spend a lot of time on social media, and if you believe you sometimes make your financial decisions about topics like investments and credit cards, based on what you’re reading (as, of course you do; we all do), you’ll want to first ask yourself a few questions.