Considering the amount of time many of us spend on social media, it's no wonder its influence extends to our financial lives. The effects can be positive, with financial content on social media making “talking about money less taboo” and fostering a sense of being financially empowered, which in turn can make it easier to make money. Some say they even did it. forbes Said.
But there are times when the influence of social media doesn't bode so well. “Nearly two-thirds (65%) of Americans believe that social media has led to an increase in overspending,” and about 18% say “they have made a disappointing purchase because of something they saw on social media.” “I answered that I did,” he said. Nerd wallet After conducting research on this topic in 2023. The reality is that not everything you see online is right or right for you.
In other words, if you're looking to incorporate social media into your financial life, it's important to be aware of the potential pitfalls and know how to use it as a tool to your advantage rather than against you.
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When used wisely, social media can serve as a useful source of financial tips. Remember that it's a double-edged sword. NerdWallet says that while social media is “a great place to get new ideas on how to manage your money,” it can also “cause feelings of envy, glorify unattainable goals, and expose you to bad advice.” There is a possibility that it will happen.” Similarly, not all content is created equal.
Still, some experts argue that the potential benefits outweigh the pitfalls when using social media to induce money. “A lot of the barriers that have traditionally been put in place for young people, especially people of color, are being removed,” said Mandy Woodruff-Santos, a career coach and podcast host. NPR.
This format makes the often-murky world of finance more understandable and introduces new information and perspectives you might not otherwise encounter. In fact, “One of the reasons people keep coming back to social media, even though they question some of the advice they find on social media, is that just like traditional personal finance advice, stories, Hint, it could be because Huck feels he can relate. Sources say otherwise,” Dan Egan, vice president of behavioral finance and investments at Betterment, said in an interview. CNBC Select.
If you're learning about personal finance on social media, it's important to view social media as one tool in your arsenal, rather than a be-all and end-all. In other words, Egan told CNBC Select, “What you read, hear, and see on social media should be viewed primarily as initial information gathering that you can investigate further before making a big money decision.” he said.
According to NPR, research your sources, “verify your sources,” search “for negative reviews or feedback from others before taking advice,” and watch out for red flags in messages. It is also important to do so. In general, you should be “wary of anyone promoting a particular product or strategy without knowing your unique situation.”
Finally, filter the suggestions found through your own personal financial goals and financial situation. What works for someone else may not be right for you either.
While social media may be good for “general education on financial issues,” consider “seeking detailed advice from a certified financial professional,” says the founder and founder of Falcon Wealth Advisors. Forbes magazine quoted CEO Jake Falcon as saying.
In addition to hiring a professional, there are many online resources you can use beyond social media, such as robo-advisors and budgeting apps. Also, find out what resources are available at your workplace or through the financial institution where you have an existing account. For many people, trusted friends and family are a treasure trove of additional information.
