Author: Charles Jorgensen CFP, JBL Wealth Management

Social media has changed how people consume financial information. Platforms like YouTube, TikTok, Instagram and X are full of confident voices offering simple, punchy answers to complex financial questions. Many of these individuals are now labelled finfluencers.

Some are well-intentioned. Many are entertaining. A few are knowledgeable. But that doesn’t make their advice appropriate – or safe – for you.

A recent academic discussion highlighted an uncomfortable truth for the financial advice industry: people increasingly trust familiar faces on screens more than qualified professionals they don’t see as often. The problem is not education. It’s psychology.

Why finfluencers are so persuasive

Finfluencers succeed because they tap into three powerful forces:

  • Confidence beats caution

Sound financial advice is usually nuanced and full of “it depends”. Social media rewards certainty. The louder and simpler the message, the more it spreads.

  • Stories outperform statistics

“I turned R50,000 into R5 million” is far more compelling than a long-term probability discussion about risk and diversification – even if the story is incomplete or misleading.

  • Familiarity breeds trust

Watching someone regularly creates a false sense of relationship. You may feel you “know” them, even though they know nothing about you.

None of this is accidental. Algorithms reward engagement, not accuracy.

The conflicts you don’t see

This is the part that often gets overlooked.

Most finfluencers are not accountable to you. They don’t know your financial position, your tax status, your dependants, your time horizon, or your tolerance for loss. More importantly, many are paid to promote products, trading platforms, crypto assets, or high-risk strategies.

Even when disclosures are made, they are usually buried in fine print or delivered as a throwaway line: “This is not financial advice.”

That disclaimer doesn’t protect your capital.

Financial advice is personal – by definition

Real financial advice requires:

  • Understanding your full financial picture
  • Knowing what could go wrong, not just what could go right
  • Being legally and ethically accountable for recommendations
  • Acting in your best interests, not the adviser’s own commercial interests

A one-size-fits-all solution delivered to millions of strangers cannot do this, no matter how polished it looks.

The danger isn’t information – it’s misplaced trust

Information itself isn’t the enemy. Learning, reading and staying curious is healthy. The risk arises when people act on generic advice without context, particularly when markets are volatile or when fear and greed are running high.

We see this repeatedly:

  • Chasing last year’s top-performing asset
  • Over-concentrating portfolios
  • Taking inappropriate risk close to retirement
  • Making emotional decisions based on headlines or hype

By the time the downside becomes visible, the finfluencer has moved on to the next trend.

A simple rule of thumb

If someone:

  • Doesn’t know you
  • Isn’t regulated
  • Isn’t accountable to you
  • Isn’t legally responsible for the outcome

then their advice should be treated as entertainment or opinion, not a basis for financial decisions.

Final thought

Good financial outcomes are rarely the result of clever shortcuts or viral ideas. They come from discipline, patience, diversification and advice that is aligned to your circumstances.

Be curious. Be sceptical. And be very careful about taking financial advice from people who may have everything to gain – and nothing to lose – from your decisions.

 

 

The information contained in this document is for information purposes only and should not be construed as financial, legal, tax, investment or other advice as defined and contemplated in the Financial Advisory and Intermediary Services Act, Act 37 of 2002. It does not constitute an offer to sell, or the solicitation of an offer to buy any product (the “Information”).