Why Social Media Money Tips Could Be Hurting You More Than Helping
Written by Karlisle Morocco
Social media has transformed almost every part of modern life, including how we learn about money. Platforms like TikTok, Instagram, YouTube and X, formerly Twitter, have given rise to a huge wave of finance influencers who share advice on budgeting, investing, saving, side hustles and wealth building. These short and catchy posts reach millions within minutes and shape the way people understand financial success.
As a Millennial, I have a love hate relationship with this world. I grew up in a time before TikTok, before short form video culture, and before AI driven feeds that learn your behaviour and tailor content to your impulses. Back then, our approach to money relied more on patience, privacy and real-world experience. Social media has made financial information incredibly accessible, but it has also created an environment where speed, entertainment and virality often matter more than accuracy or real strategy. This creates risks for anyone who is trying to make smart, informed financial decisions.
Online finance content can be educational and motivating, especially for people who did not grow up discussing money at home, but it can also be misleading and even harmful when taken at face value. Whether you are dealing with rising living costs, childcare expenses, a mortgage, or preparing for retirement, social media money advice rarely accounts for your personal circumstances. And that is where the problems begin.
Lack of Personalization
One of the biggest and most consistent risks is that social media money tips are not personalised. Financial decisions are deeply individual. They depend on your income, your debt levels, your goals, your responsibilities, your risk tolerance and your long-term plans. A strategy that is perfect for one person could be completely wrong for someone else.
Social media posts are designed for mass audiences. This means they must simplify and generalise. A thirty second video on investing cannot possibly cover tax implications, market cycles, risk factors, personal income considerations, or the stability of your employment. Yet many creators make bold claims and offer direct instructions as though these tips apply universally.
For example, you might see someone recommending a certain investment strategy, but they do not mention that they have a much higher risk tolerance than you. Or they might share a budgeting approach, but they do not explain that the cost of living where they live is completely different from yours. When people apply these general tips to their personal situation, they may end up making choices that put their financial wellbeing at risk.
The simplicity that makes social media appealing is the same thing that limits its usefulness. Without context, nuance and professional insight, many of these seemingly helpful tips can push people in the wrong direction.
AI Amplification and Misinformation
Another major factor shaping money advice online is artificial intelligence. Modern social media algorithms prioritise engagement above all else. They track what you watch, what you like, what you save and what you comment on. Then they amplify content that fits your interests, even if that content is not accurate.
This creates a feedback loop where sensationalised stories, dramatic financial wins and overly confident advice get pushed to the top of your feed. Meanwhile, slower, more thoughtful content that takes a balanced or cautious approach is often buried.
AI can also blur the line between authentic and fabricated content. Some influencers unintentionally share incorrect information because they are not qualified professionals. Others share AI generated posts that look polished and authoritative but are based on generic or inaccurate data.
Many users are not aware of how much manipulation is happening behind the scenes. They may not recognise when a video is sponsored, when an influencer is being paid to promote a product, or when the content is misleading. This can result in people trusting financial advice that is not grounded in real expertise or ethical responsibility.
Emotional Influence and Behavioural Biases
Social media is designed to trigger emotion. That is why finance influencers often showcase luxury lifestyles, dramatic success stories and quick win strategies. These stories create a powerful sense of aspiration and urgency. They activate behavioural biases like fear of missing out, overconfidence and impulsiveness.
For people dealing with financial stress, a mortgage, rising rent, childcare costs or the general strain of modern living, this emotional influence can be significant. It makes risky or unrealistic strategies appear more attractive than they are.
The problem is that emotional decision making rarely aligns with strong financial decision making. When people chase the excitement of a trend or the promise of a quick reward, they may overlook the risks or skip important steps like research, planning and consultation. Social media normalises fast decisions, but real financial stability requires long term thinking
Conflicts of Interest
Many social media influencers earn income through brand deals, affiliate links, sponsored posts and promotional partnerships. These financial incentives can influence what they recommend. Unfortunately, many creators either minimise these disclosures or embed them in small print. They may present their advice as personal and unbiased when it is motivated by commercial deals.
This does not mean all influencers are dishonest. Many genuinely want to help people. But without clear disclosures, followers may assume the advice is independent when it is not.
It is important for viewers to remember that popularity does not equal accuracy. A viral video is not the same as professional financial guidance. And entertainment is not the same as expertise.
Short Term Focus Over Long Term Planning
Social media thrives on fast and exciting content. Quick flips, dramatic savings challenges and overnight success stories perform extremely well because they capture attention. But financial success is usually built on slow, steady and consistent habits.
Long term planning is not flashy. It does not get millions of views. Yet it is the foundation of financial security.
People who rely heavily on social media for money advice may adopt short term strategies that expose them to higher risks. They may feel pressured to enter the stock market at the wrong time, chase speculative investments, move money too frequently or abandon their long-term plans.
This happens across all age groups. Those seeking financial independence, those trying to build savings and those preparing for retirement can all be influenced by the fast-paced nature of social content.
Geographical Differences and Regulatory Risks
Another overlooked issue is that many influencers live in different countries, sometimes on the other side of the world. Financial systems differ dramatically between regions. Tax laws, investment regulations, banking rules and retirement systems are not universal.
What works for someone in the United States may be unsuitable or even prohibited in Australia or the United Kingdom. Without understanding these regional differences, viewers may follow advice that conflicts with their local laws or financial structures.
This problem is most common with investing, retirement strategies, tax planning, credit products and insurance recommendations. Followers often assume that if a popular influencer says it, it must be universally applicable. But that is rarely the case.
Mitigating the Risks
Social media still has value when used thoughtfully. The key is recognising that online content is a starting point, not a complete financial strategy. Here are some ways to navigate finance content safely:
Verify Credentials: Look for creators who have real qualifications such as financial planning education or regulated licensing.
Use Critical Thinking: Question bold claims, especially those that sound too good to be true or promote quick wins.
Protect Your Data: Understand how platforms use your behaviour to curate your feed and influence your decisions.
Focus on Fundamentals: Saving regularly, budgeting, building an emergency fund, diversifying investments and managing risk are timeless principles.
Talk to Professionals: Major financial decisions deserve personalised guidance from people who understand your full situation.
Watch Your Biases: Recognise when emotion or social comparison is driving your interest in a piece of content.
Social media has made financial education more accessible than ever before. It allows people from all backgrounds to learn about investing, saving, budgeting and building wealth. But accessibility does not always equal accuracy. The combination of AI amplification, limited personalisation lack of regulation and cross-country differences means that influencer driven advice can be risky when relied on too heavily.
While social media can spark curiosity and encourage people to learn more about money, it should never replace personalised financial planning or professional guidance. True financial security comes from consistent habits, thoughtful decisions and long-term strategies, not viral trends or algorithmically curated advice. In a world where online content shapes behaviour at lightning speed, being informed, cautious and intentional is essential. Social media can be a valuable tool, but only when used with perspective, awareness and critical thinking.
If you’re feeling unsure about what advice actually applies to your situation, we’re here to help. Reach out to Braeside Wealth for personalised, independent guidance grounded in real strategy—not trends.
Get in touch with Braeside Wealth today for a chat about how this approach could work for your situation. It’s the first step toward a calm, confident, and financially free retirement. Click here to book a 15-minute Good Fit Chat.
The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.