Finfluencers are becoming a major source of money advice for Gen Z. Explore the risks of unregistered financial advice, misleading investment content and what young investors should check before acting.
If you just swipe through social media, financial advice is one of the main things you will see. You will find videos with titles like "how to become a millionaire easily" or "earn lakhs every month". People who give this kind of financial advice through Instagram Reels and YouTube Shorts are called 'finfluencers'. They mainly target the young Gen Z crowd.
The new generation wants to move away from traditional banking and fixed deposits. These videos easily attract them. But these finfluencers often have no real experience or certifications. Their advice pushes many young people into huge financial losses.
Why does Gen Z trust them?
Finfluencers succeed because they explain complex financial topics simply in just 15 to 60 seconds. They make things like mutual funds, cryptocurrency, stock market trading, and real estate investments look very easy. Young people want to get rich quickly, and their lack of awareness makes the situation worse.
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Let us look at the hidden dangers of trusting these people blindly. Many finfluencers take money from various apps and companies to promote specific stocks and trading platforms. They never reveal the actual risks involved in these investments.
You must remember that these investments carry uncontrolled risks. We regularly see news about young people falling into huge debt after doing high-risk options trading and crypto investments without proper study. In India, you need a mandatory registration from the market regulator SEBI to give financial advice. But most of these finfluencers do not have this license.
How to avoid getting scammed
The first step is to understand that not everything you see on social media is true. You should seek help from Certified Financial Planners (CFP) or SEBI-registered advisors before you make an investment. The best way to avoid these traps is to invest your money only after you do your own proper research.
