Thousands of videos on how to invest, save your first $100,000 or pay off hefty debt quickly are just a few taps away on social media.
Finfluencers, or financial influencers, can provide a head start in financial literacy for some young investors and can have significant sway over people's financial decisions. But experts say it's important to keep your skepticism hat on.
When Alim Dhanji came across his first finfluencer content, he got the impression some were focused on products or investments, instead of educating viewers.
"Some might be credible, some may not be credible," said Dhanji, a senior financial planner with Assante Financial Management.
"Social media platforms don't really require any type of licensing or accreditation."
Finfluencers have carved a space for themselves in the financial industry — offering free and easy-to-access tips online about everyday money — with or without financial certifications.
An Ontario Securities Commission report on the rise of finfluencers showed while some of these content creators could offer quality advice, others may have ulterior motives.
In the report, the regulator said a survey it conducted with 655 Canadian retail investors found thirty-five per cent of respondents said they had made a financial decision based on advice from a finfluencer.
The online personalities can generally fall into three categories: unregistered individuals, unregistered individuals hired by financial firms and registered investment advisers, it said.
"Think about it as a funnel," said Nathan Kennedy, finance content creator and founder of New Money Nate Media.
"We're, like, super top of funnel — awareness, exposure, getting those ideas and those concepts out there and getting people curious."
An investor's journey can start on social media but "it shouldn't end on social media," said Kennedy, an aspiring candidate for Accredited Financial Counsellor Canada.
He said the content should encourage investors to go see a professional and give professional advice tailored to their situation or gather information and make decisions for themselves.
"I try my best not to give advice," said Kennedy. "I can share ideas and talk about financial literacy."
Dhanji said his clients often bring up finfluencer reels or videos they saw online to ask about investing concepts or investment products.
"For my clients that bring me information, I help them validate it and we determine whether or not that strategy makes sense," Dhanji said.
"A lot of the time, (influencers) don't give you the full information. So, you have to go in and fill in the pieces and say, 'Well, does that really make sense?'" he added.
For example, Dhanji recalled when a client came to him with a post about mortgage interest deductibility. While it could work for some people, he said that advice wasn't suitable for his client.
For the most part, Dhanji said, finfluencers could flag strategies and investment ideas that could work — but may not have the credentials to offer tailored advice.
Kennedy said a vast majority of finfluencers are popular for offering tips on generic finance ideas such as spending less money than you earn and investing the difference and levelling up your income.
But some bad apples on social media are overshadowing "the majority of the good work a lot of the other creators are doing," he added.
Some red flags could be guaranteeing results or telling investors to put their money in a new meme coin or stock, or anything requiring urgency to put money in, Kennedy said.
"Speed, quickness, richness — probably want to steer clear of that," he said.
Last month, the Alberta Securities Commission found a finfluencer breached the province's securities laws when they recommended certain stock purchases to their social media followers without disclosing the posts were made on behalf of four Alberta issuers.
Dhanji warned not to jump into a financial decision or strategy that you see online right away.
"If it's too good to be true, I would say to be cautious," Dhanji said.
Question how the finfluencers are getting paid, the ins and outs of what they're recommending and what their qualifications and credentials are, Dhanji said.
He suggested researching and making educated decisions on your own — and not being influenced by instant gratification.
Most importantly, Dhanji said, having a good plan in place based on your goals, risk tolerance and personal circumstances is a proven way to be financially successful.
"That will be the foundation for most Canadians to be successful with their finances."
This report by The Canadian Press was first published May 6, 2025.
Ritika Dubey, The Canadian Press
