The Pros and Cons of Turning to Social Media for Financial Advice

There are a staggering 54.5 million active social media users in the UK alone, with 98% of Millennials and Gen-Z consumers regularly logging into at least one social media platform. With so many of us online, information on a variety of topics, such as money and personal finance, is within easy reach.

A study carried out by TSB revealed that 42% of survey respondents aged between 16 and 24 said that they’d turned to social media for financial advice in the last 12 months.
In addition to this, the term ‘MoneyTok’ has 3.1million posts on the popular social media platform, TikTok, as of January 2026.

Despite its growing popularity, can we really trust financial advice found on social media?
Little Loans examines the advantages and disadvantages of social media financial advice, as well as strategies for safeguarding yourself and your money online.

What is a ‘finfluencer’?

A finfluencer – a financial influencer - is a social media figure who shares financial advice and tips. Finfluencers typically cover a range of topics, including investing and saving. Some may even promote ‘get rich quick’ schemes, which you should be very wary of – more on this later.

While some finfluencers may have a background in financial services, the reality is that many have not, meaning that the credibility of their information can be questionable, at best.

Can I trust financial advice given by finfluencers (financial influencers)?

This really depends on the type of financial content you’re looking for and the authenticity of the source you’re getting it from.
Financial advice found on social media should be approached with caution. There may be less risk associated with topics like basic money-saving tips; however, advice on serious subjects such as debt, investments, and mortgages should be left to qualified professionals.

Why you might consider turning to social media for financial advice

• Easy to access
  In the past, before the internet was as prominent as it is today, someone looking for financial advice would have made an appointment to speak with their bank or a financial advisor. Now, we have information at our fingertips, 24 hours a day, 7 days a week.


• It’s impersonal
  Talking about money can be uncomfortable.
  Seeking advice online is a way to get around the awkwardness of an in-person or verbal conversation with a loved one or a professional advisor. However, we’ll look into the reasons why this isn’t necessarily a good thing in the section below.


• Motivation to work towards your financial goals
  When done right, genuine, fact-checked financial content could be useful, helpful, and even motivational.
  For example, content explaining the risks of debt or highlighting the importance of saving money could actually have a positive impact on how we manage our finances.


• Unintentional exposure
  Perhaps you didn’t set out to search social media for financial advice; 83% of users report that they have been shown financial content without having actively looked for it.
  Once financial content starts showing up on your social feeds, you might then begin to engage with it.

Things to be aware of if you use social media for financial information

Consuming financial advice online comes with significant risks.
Despite 70% of users claiming to trust financial advice that they see online, 55% have actually lost money as a result of following such advice.

• Risk of consuming misinformation
  In theory, anyone can start a social media channel and talk about finance - but that doesn’t mean that what they’re saying is factual.
  Individual financial content creators are not regulated, which means they can’t be held accountable if you lose money after following their advice.


• Danger of over-generalising situations
  Everyone’s financial situations are unique to them, and it’s important to remember that tips and hacks that work for one person won’t necessarily work for another.
  Social media posts may try to entice you with wording such as, ‘everyone must try this one hack to save X amount of money!’ or ‘get on the property ladder with these simple steps!’.
  What this attention-grabbing wording doesn’t tell you is that there are likely to be many ‘ifs’ and ‘buts’ – and it won’t be a suitable choice for everyone.
  Do your own research, weigh up any potential risks, and see whether the advice is a good fit for your personal circumstances.

How to protect yourself from financial misinformation on social media

• Be vigilant of scams
  According to TSB, 67% of investment fraud cases come from social media, with an average loss of £3,706 per case.
  There are several ways to spot potential scams, including paying attention to the urgency of the wording used within the content. Phrases such as ‘one-time offer’ and ‘don’t delay – sign up for more investment advice now!’ are red flags.
  Be wary of any social media account that requires you to pay a fee to access financial information or join schemes.
  If something sounds too good to be true, then it probably is - and a prime example of this is ‘get rich quick’ schemes. Put simply, if it were that easy to get rich quickly, we would all be millionaires.
  Finally, never share your personal or financial information with anyone online, unless you can be absolutely certain of their authenticity.
  You can read more about spotting and preventing scams in our guide here. Worried about investment scams? MoneyHelper have put together this useful guide.


• Check the credibility of the content
  42% of social media users admit that they don’t know how to check the credibility of the content they view.
  Here are some steps you can take:

1. Who created/ posted the content? If it has been posted by a legitimate company like Santander, it will be credible and fact-checked. Remember to make sure that any companies you follow are genuine by checking for a tick or badge of authentication. If the content has been posted by an individual, such as a finfluencer, more research is needed to decide whether the information can be trusted.
2. What’s their post history? Have they always shared financial content, or does this theme seem somewhat random in the context of their other posts? For instance, if they typically post sports commentary or beauty tips and suddenly post a video about investment opportunities, take a step back and dig a little deeper into their agenda.
3. What is the motive? Finfluencers and finance accounts simply sharing generic money-saving tips, such as supermarket swaps, are less likely to pose a risk. Accounts encouraging a sign-up, promoting a product as a paid advertisement, or requesting money should be approached carefully.
4. Are there any statistics and sources available to back up their claims? A finfluencer claiming that people have saved ‘thousands of pounds’ by signing up to a finance course, for example, should be able to support their figures with a source.

Important: In the UK, any company or individual offering financial services must be authorised and regulated by the Financial Conduct Authority (FCA). You can check to see whether a company or individual appears on the FCA register here.

• Follow trusted, official accounts
  Many legitimate finance companies, such as NatWest, Money Wellness, and thimbl Credit Card, have active social media accounts. Give them a follow and gather your financial advice, hints, and tips from a credible source instead.


• Do your own research
  As discussed, financial advice and tips, whoever they have been supplied by, are not one size fits all, and not all are genuine. Be sure to do thorough research before acting on any information you pick up from social media.

How does social media affect money?

Social media could affect your financial situation and relationship with money in a number of ways.

• Blurs the lines of reality
  It can be so easy to fall into the trap of ‘doomscrolling’ and assuming that everyone has a better life, healthier relationship, bigger house, and more money than us. This could lead to us making rash decisions, such as throwing our money at ill-informed investments in a bid to grow our ‘wealth’.
  It’s vital to remember that social media is a carefully curated slideshow of the ‘best bits’ of life and rarely reflects reality for most people.


• Increased financial anxiety
  As touched upon in the point above, social media is a limited snapshot of real life, but that doesn’t mean it can’t hurt how we feel about ourselves, our finances, and our life in general.
  One survey revealed that 43% of users felt worse about their financial situation after spending time on social media.
  Consider blocking any accounts that leave you with anxious, negative feelings.


• Impulse spending
  70% of UK adults have made a purchase influenced by social media, and a huge 61% have later regretted it.
  The fact is, many influencers are paid to promote certain products and services, so of course, they are going to talk positively and persuasively about them. We’re sold the promise that this product or that service will enhance our life in some way, so naturally, we’re going to be tempted to buy, but, as we’ve talked about, what you’re being shown is very rarely the full picture.
  The danger of social media and online shopping as a whole is the ease with which you can buy from the comfort of your home without even thinking about it, just by tapping and confirming.

What to do if you’re struggling with money

We understand that money worries are really frightening, and we appreciate that scanning social media for advice might feel like the most comfortable choice for you. However, please know that there are multiple charities and organisations that provide free, confidential advice on a range of money and debt topics. Many offer a telephone and/or online chat service, or you may simply prefer to browse their websites for now.

• StepChange
• MoneyHelper
• Citizens Advice
• National Debtline.

Please refer to each website for availability of services and potential call charges.