61% of young adults turn to social for investing advice. Why tips from ‘finfluencers’ shouldn’t be your whole strategy

A growing number of young adults are turning to social media for investing and financial advice, and experts warn that this trend could carry real risks.

Recently released data from the FINRA Investor Education Foundation (1) shows that about 25% of U.S. adults surveyed say they use recommendations from social media influencers when making investment decisions. Among people aged 35 and younger, the share jumps to 61%. Even more concerning: 57% of people with less than two years of investing experience reported relying on social media for financial guidance.

So-called “finfluencers” now play a major role in shaping how an entire generation thinks about money. But as Washington Post personal finance columnist Michelle Singletary warns, the advice circulating online isn’t always accurate or trustworthy (2).

The impact of ‘finfluncers’

Financial choices made in your 20s and 30s don’t just affect your balance today — they can shape your financial security for decades. Money invested early has more time to grow, meaning even small missteps can snowball into missing years of potential growth.

There is also a less obvious risk: loss of confidence. Young investors who follow overhyped online advice and get burned may pull out of investing altogether, delaying or abandoning long-term wealth-building strategies such as retirement savings.

According to Singletary, social media isn’t inherently bad, but it’s a shaky foundation for making serious financial decisions. Common red flags include:

• Lack of qualifications: Many finfluencers have no formal training or credentials. They’re also not required to follow ethical or fiduciary standards.

• Hidden financial incentives: Sponsorships, affiliate links and commissions are common moneymakers for influencers, and they’re not required to share that information with their viewers.

• Oversimplified strategies: Complex topics like investing, homeownership or crypto volatility are often squeezed into short videos that gloss over risks and ignore nuance.

• Hype and fear tactics: Sensational claims and “you’re missing out” messaging are designed to drive engagement, not strategic investment decisions.

In the worst cases, some influencers have promoted pump-and-dump schemes, where hype is used to inflate prices before insiders cash out. For young investors or those with limited financial experience, falling for a scam can be a real risk.