SOMA Living August 2025

FINANCIAL FOCUS

In the age of social media, finding advice on money management has become easy. Content creators known as “finfluencers, short for financial influencers, use platforms like TikTok, YouTube, and Instagram to share insights on investing, budgeting, and wealth building. Many possess charisma and relatability, speaking from personal experience. However, accepting financial advice from a finfluencer without deeper investigation carries significant risks. Some finfluencers hold formal training or credentials, but many do not. Their influence often relies on popularity instead of professional experience. A 2025 study by the Swiss Finance Institute indicates that unskilled finfluencers attract larger followings than skilled ones. For young or new investors, social media can make finance appear accessible. A 2022 FINRA study shows over 60% of Americans under 35 obtain investing information from these platforms. Social media lacks regulation like traditional financial advising; anyone can offer financial tips, qualified or not. While traditional financial advisors understand your unique goals, finfluencers typically do not. Most lack licensing (check here: Check Out Your Investment Professional | Investor.gov). Even well-meaning advice may lead to risky paths if it lacks personalization. SHOULD YOU TRUST A ‘FINFLUENCER’?

Warning signs to watch for include: • Unrealistic “get-rich” promises: Claims like “Turn $500 into $50,000 in a year” likely indicate scams. • Hurry, hurry: Beware of pressure to act quickly. • Flashy displays of wealth: Images of luxury often prioritize views over sound advice. Finfluencers can engage audiences, but rely on informed, personalized guidance for your financial health.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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AUGUST 2025 | SOMA LIVING 21

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