Should you trust personal finance advice from a ‘finfluencer’?

Easily digestible content like Yang’s appeals primarily to a young audience, says Radhika Duggal, an adjunct business professor at New York University and the chief marketing officer at fintech company Super.

“With the lack of financial education in schools, Gen Zers are being forced to learn about money on their own,” she says. “This is the first economic crisis that younger generations are experiencing, and it’s no surprise that they’re turning to influencers to ensure that they can make good decisions and weather the current climate.”

Connor Campbell, a business finance expert at financial comparison site NerdWallet UK, says successful finfluencers purposely provide an easy entry point into money-related topics. “Financial influencers tend to create content that is appealing to younger generations, specifically using terminology and examples that relate to pop-culture and simplifying financial terms,” he says.

One example of a simplified financial concept is “cash-stuffing“, a budgeting method that went viral on TikTok in 2022. The cash-stuffing system advocates for dividing physical cash into folders or envelopes for allotted expenses, such as groceries or hobbies, meaning followers are less likely to overspend. It’s not a novel concept, but it is new to many young social media users, especially those with limited personal finance exposure.

Content like this is helpful to promote better financial habits among young people, believes Campbell. “By presenting financial tips in an accessible way, they’ve improved financial literacy, and invoked a newfound interest in being proactive about where people are putting their money, and ways that they can bump their savings.”

Purnell agrees, saying that responses from her readers has been “overwhelmingly positive”, and that people appreciate her advice on living more frugally. She believes that the relatability of her content, combined with the simplicity of her advice, is a winning formula for young viewers. “I’m just another person looking to save money and perhaps try out a side-hustle or two,” she says.

Experts or regular people?

Yet although creators say audiences have been highly receptive to their tips, experts caution some finfluencers may also be leading followers astray – and even, in some cases, taking advantage of them.