Nowadays, there’s a social media influencer for just about everything. From cosmetics to cars, interior design to health and fitness, there are plenty of influencers out there, eager to provide advice and product suggestions to their followers.
While influencers may provide helpful ideas, care should always be taken when considering their advice. In many cases, the influencer is providing a personal opinion and in some cases may not be qualified in their area of ‘expertise’.
Worse still, they may be being paid to promote a product whether it’s suitable or good value or not. This is why financial influencers, otherwise known as ‘finfluencers’, could be particularly damaging to your wealth.
Despite this, research by Barclays revealed that nearly a quarter (23%) of Britons use social media, community messaging apps and online forums for investment guidance. It may not come as a surprise to learn that online investment guidance is most popular among younger generations.
According to the study, 40% of younger generations use social media for investment support, with 46% of 18–24-year-olds (Gen Z) using it. The reason for this, Barclays explained, is because finfluencers are ‘free to use’ and ‘quick and easy’.
Yet if you have adult children or a younger member of your family using finfluencers to make decisions, it could cost them dearly. So, with this in mind, read on to discover three important reasons why relying on a finfluencer could jeopardise a younger family member’s financial stability.
1. The ‘advice’ isn’t tailored to your needs
Finfluencers speak to a large and varied audience and as such, take a ‘one size fits all’ approach. When it comes to finances, this can be extremely risky as what might work for one person may be completely wrong for another.
As a finfluencer won’t take individual circumstances into account when they promote an investment or product, there’s a good chance it won’t be suitable for your adult child or family member.
For example, if the level of risk involved with the finfluencer’s suggestion is too high for their circumstances, it could result in significant losses the family member can’t afford to take. As a result, they may need to significantly reduce their lifestyle, and it may put their financial security at risk.
As financial advisers have a duty to fully understand their client’s wealth, they’ll only ever recommend investments and products that are suitable to their client’s needs. This means your family member’s money will be exposed to as much growth potential as possible while being exposed to a level of risk that’s right for them.
2. Finfluencers may not be qualified to advise
Finfluencers are often very articulate and charismatic, which makes them seem very knowledgeable and wise. In some cases, they may claim to be a financial ‘expert’ or ‘guru’ but the reality could be very different.
If the finfluencer doesn’t have the qualifications needed to give good financial advice, they may invertedly provide incorrect – and potentially damaging – information. As a result, your family member may end up with an unexpected (and significant) tax charge or suffer major losses.
Financial advisers, on the other hand, are professionals who have passed a series of rigorous exams to ensure they understand the investments and products they offer. Furthermore, advisers must show that they’re maintaining and enhancing their knowledge through an ongoing program of Continuous Professional Development.
As a result, you and your family member will have peace of mind that any advice or recommendation made will be based on a deep level of understanding. This means they will have considered any taxation implications, regulatory changes and the pros and cons of the financial product.
This in turn dramatically reduces the risk of a mistake being made that could seriously damage your family member’s wealth and financial security.
3. The product being promoted could be a scam
In many instances, the finfluencer may have been paid or given incentives to promote an investment or financial product. As such, they will be eager to make them sound as good as possible and could ‘gloss over’ any pitfalls.
On top of this, the finfluencer’s lack of experience and knowledge means they may not realise that they’re promoting a financial scam. This could result in a family member investing in a product that costs them dearly later on.
As financial advisers have a duty to fully understand the investments and financial products they offer, you can rest easy that anything recommended will be bona fide. Furthermore, this knowledge means they’ll be able to provide your family member with clear explanations of the risks and potential opportunities, tax implications and charges involved.
They’ll also explain whether there are any alternatives the family member should also consider. This will help to protect them from potential future losses that could substantially reduce their standard of living.
How could AFH Wealth Management help?
If you have a younger member of the family who believes that working with a financial adviser isn’t for them, we hope the above provides food for thought. As one of the UK’s leading financial advice companies, you and your family member can rest easy that our independent advisers will only every recommend the most suitable financial product.
Furthermore, they’ll explain the options that are available in a clear, jargon-free way, so your family member will be better placed to make good decisions. If you would like to discuss this further, please contact us on 0333 010 0008 and we’d be happy to arrange a no-obligation initial meeting with one of our advisers.
28 August 2026