Dani Echeverria knows that his job, his marriage and his health are a balance linked to his budget. "It's part of your mental health because if you're stressed about your finances, your mental health is going to suffer," Echeverria said. media to find information and advice on so many things in his life. For her and a growing number of people, that includes financial information. “So how much do you have to spend on groceries? How much do you have to spend to go to the cinema? How much did you spend on hanging out with friends? How much did you save/pay for yourself?" Echeverria asked. "So those are different things I like to see and how people do it." There are a lot of influencers who are not only worthy trust, but they also give great advice. And the beauty of influencers is that it's really become a way to democratize financial advice," Lowry said. Lowry says money management and education “Influencers,” as financial influencers are known, have often been associated with the wealthy, changing the game to yourself giving financial advice,” Lowry said. The positive points? You can learn to save and spend wisely in a way that is relatable, understandable and personal. "So that kind of stuff makes me feel comfortable in that sense. I'm listening to someone who's on par with me as opposed to someone who's here and I'm here," Echeverria said. "On the one hand, it's a huge win. On the other hand, we have to learn how to control people,” Lowry said. Because an finfluencer is not the same as a certified financial advisor. Merav Ozair, of Wake Forest University, says that instead, influencers have no direct government regulation or accountability."I don't think they even know what the law is. I don't think "they know the regulations. The for-profit sector is so regulated, highly regulated," Ozair said. They must disclose conflicts of interest, follow laws to protect you from fraud and scams, and work directly with clients to create personalized investment strategies. All this is in addition to passing professional exams. Influencers, however, are not covered by consumer protection law, and the SEC says their posts are often heavily protected by free speech. This means that you have a limited ability to recover money if someone points you in the wrong direction. But there has been a real crackdown on online secrecy. "It's easy for them to identify big celebrities and go after Kim Kardashian, for example, because they're big names," Ozair said. three years — and was forced to pay a $1 million fine — to settle federal charges that she recommended crypto security to her Instagram followers without stating that she was being paid. The SEC filed charges in December against eight social media influencers accusing them of using their platforms to manipulate their followers into buying shares. Lawyers say that after their followers increased volume and prices, they sold their own shares without telling their followers, creating a $100 million scheme. , 'This is a stock you should buy. This is the crypto you need to buy. Because for one person it might be true, but for you it might not be. And they can't unilaterally say on all levels that this is the right decision for everyone,” Lowry said. But Lowry says the unique experience is exactly what makes finfluencers — the honest and transparent ones — so valuable. For Echeverria, watching people she trusts on YouTube and buying spreadsheets that some influencers sell on budget works well for her. "People not necessarily telling you, 'Do this,' but saying, 'Hey, here's what I'm doing, maybe it will work for you,'" Echeverria said.
Dani Echeverria knows that his job, his marriage and his health are a balance linked to his budget.
"It's part of your mental health, because if you're stressed about your finances, your mental health is going to suffer," Echeverria said.
Echeverria uses social media to find information and advice on so many things in her life. For her and a growing number of people, that includes financial information.
"So how much to spend on groceries? How much to spend on going to the movies? How much did you spend on hanging out with friends? How much did you save/pay?" Echeverria asked. "So it's different things that I like to see and how people do it."
Erin Lowry is the author of the three-part "Broke Millennial" book series.
“There are plenty of influencers out there who are not only trustworthy but also give great advice. And the beauty of influencers is that it's really become a way to democratize financial advice,” Lowry said.
Lowry says money management and financial education have often been associated with the wealthy.
"Finfluencers", as financial influencers are called, have changed the game.
"No matter where you're from, in terms of your own background, you can probably find someone who looks and has had similar life experiences to you who gives financial advice," Lowry said.
The positive points ? You can learn how to save and spend wisely in a way that is relevant, understandable, and personal.
“So that kind of thing makes me feel comfortable in that sense. That I listen to someone who is on par with me as opposed to someone who is here and I am here,” Echeverria said.
“On the one hand, it's a huge victory. On the other hand, we have to learn to control people,” Lowry said.
Because an finfluencer is not the same as a certified financial advisor. Merav Ozair of Wake Forest University says that instead, finfluencers have no direct government regulation or responsibility.
“I don't think they even know what the law is. I don't think they know the rules. The for-profit sector is so regulated, highly regulated,” Ozair said.
The U.S. Securities and Exchange Commission says financial advisers must follow laws that require advertisements and endorsements to be truthful. They must disclose conflicts of interest, follow laws to protect you from fraud and scams, and work directly with clients to create personalized investment strategies. All of this is in addition to passing professional exams.
Influencers, however, are not covered by consumer protection law, and the SEC says their posts are often heavily protected by free speech. This means that you have a limited ability to recover money if someone points you in the wrong direction. But there has been a real crackdown on online secrecy.
"It's easy for them to identify big celebrities and go after Kim Kardashian, for example, because they're big names," Ozair said.
Kardashian is banned from promoting cryptocurrency for three years – and was forced to pay a $1 million fine – to settle federal charges for which she recommended crypto security to her Instagram followers without specifying that she has been paid.
The SEC filed charges in December against eight social media influencers accusing them of using their platforms to manipulate their followers into buying shares. Lawyers say that after their followers increased volume and prices, they sold their own shares without telling their followers, creating a $100 million scheme.
"So always turn up your little antenna if the person you're following is constantly throwing out, 'That's a stock you should buy.' This is the crypto you need to buy. Because for one person it might be true, but for you it might not be. And they can't unilaterally say it's the right decision for everyone,” Lowry said.
But Lowry says the unique experience is exactly what makes finfluencers – the honest and transparent ones – so valuable.
For Echeverria, watching people she trusts on YouTube and buying spreadsheets that some influencers sell on budget suits her well.
"People who don't necessarily tell you 'Do this,' but 'Hey, here's what I do, maybe this will work for you,'" Echeverria said.