Are you tired of sifting through social media for reliable financial advice? Look no further! In a recent talk at BBVA’s EduFin Summit 2022, Manuel Ángel Méndez shared valuable insights on how to distinguish between entertainment, education, and investment advice in the world of ‘finfluencers’.
According to Méndez, it’s crucial to evaluate the qualifications and experience of influencers before taking their advice to heart. Many self-proclaimed experts lack the necessary certifications and knowledge to offer sound investment advice.
Ready to learn the five key questions to ask yourself when evaluating financial content?
1. What are their certified qualifications and experience? Before following investment advice found on social media, be sure to thoroughly research the background of the person offering the advice.
2. Are they insistent on passive income? Beware of influencers who push the idea of earning passive income as a quick and easy solution, especially if they suggest dropping out of college or abandoning your job to rely solely on passive income.
3. Do they show off a luxury lifestyle? Keep an eye out for influencers flaunting a lavish lifestyle, as this often appeals to the aspirations of young and impressionable audiences.
4. Is popularity their business model? Consider whether an influencer’s motives are genuine or if they are focused on generating income through advertising or selling online courses.
5. Do they mix in toxic messages with their content? Be cautious of ‘finfluencers’ who blend useful content with toxic and subversive messages that can be misleading and harmful.
