How much have you lost taking personal financial advice from Instagram and TikTok?
Not so ‘appy days: Brits lose £368.56 on average taking personal advice from Instagram and TikTok
On one hand, I love that personal finance has come into its own over the last couple of years. Martin Lewis has always been a huge idol of mine, and with the likes of HerFirst 100kand my UK Money Bloggers team led by Andy Be Clever With Your Cash, you can get many tips from social media.
However, alarmingly, so many people on social media claim to be experts in Crypto, offering finance hacks and ways to join their teams, who are losing people money.
Brokegirlinthecity.com is a personal finance and lifestyle blog offering top tips on how to live your best life, even on a budget. However I am not a financial advisor. Read some of the stats below by VoucherCodes which reveal how some people lost money through the wrong advice. More importantly, you don’t allow yourself to be scammed.
New research reveals that almost a quarter of Brits (23%) admit they’ve lost money following personal finance advice from social media, resulting in an average loss of £368.56 per person.
Nearly a quarter (23%) of Brits have lost money after turning to social media for personal finance advice, and 15% regret it
Millennials are the age group losing the highest amount at £719.72 – 95% more than the national average
Instagram and Facebook are named as the platforms Brits are most likely to turn to for monetary advice
Personal Finance Report – VoucherCodes
The Personal Finance Report 2023, by the UK’s savings site, VoucherCodes.co.uk, investigates the impact social media personal finance influencers have on their followers’ bank balances. The data reveals that 15% of consumers regret taking monetary advice from social media influencers and an additional third (32%) are yet to decide whether they regret listening to influencers’ advice.
Breaking this down by age group, Millennials have lost the most, coming in at £719.72 – 95% more than the national average (£368.56).
For the youngest generation – Gen Z, despite losing less than their Millennial counterparts (£571.88). The digitally savvy generation is the most likely to lose money from trusting online influencers, with nearly half (47%) stating they have lost money in this way.
The average amount lost from taking personal finance advice from social media platforms broken down by age group
Age group (years)
The average amount lost from taking personal finance advice from social media (£)
Instagram and Facebook top the list for financial advice
Regarding which platforms Brits are most likely to turn to for financial advice. Instagram and Facebook top the list. On average, 28% of the population has taken money advice from one or both platforms.
Looking at the younger generations, unsurprisingly, this rises drastically to a third (33%) of Gen Z users taking advice from Instagram and 22% from Facebook. However, it’s the newer video-sharing platform, TikTok, that Gen Z is turning to over Facebook, as nearly three in 10 (29%) turn to the app to increase their financial literacy.
Anita Naik, Savings Expert at VoucherCodes.co.uk said: “It’s clear to see that Brits, especially the younger generations, are trusting monetary advice given on popular social media platforms. With its free, easy-to-digest content, we can see why many are turning to the apps to help increase their financial literacy. However, as our report shows, taking financial advice from influencers comes with its risks, as seen in the number of people losing money in this way.
“Although social media can be a great source of information, it’s important to remember personal finance advice rarely comes in a one size fits all package, and there are few regulations in the space If you are keen to explore how you could boost your financial knowledge from social media, it’s always recommended to do your research to ensure the credibility of the influencer you are trusting, then verify any advice given with an official source of financial advice. Speaking to friends and family will also help you gain personal recommendations, and most importantly, make sure you test any advice you follow with money you would be willing to lose.”
Knowing how much you can trust the source when you are genuinely looking for financial advice and top tips is difficult. With the cost of living crisis deepening, many people position themselves as financial experts on social media. I am a lifestyle and personal finance blogger, but I am not a financial expert. I offer top tips from my own experiences and share what’s happening right now, but you should always get expert financial advice for those big life decisions; however, with the rise of NFTs, Crypto and new opportunities to make money online. It isn’t easy to navigate who is giving good advice V who has no idea what they are talking about, and can lead you down a very dark financial path, losing you money.
1. Check out the Crypto markets for yourself
The market is so volatile that many lost money last year, including me! Elon Musk promoted the merits of Bitcoin and Dodge, but the market crashed last year, with scandals undermining confidence in a very ungoverned market. I advise you not to spend more than you can afford to lose. Yes there are wins to be had, and everyone seems to be a Crypto expert on social media, but be wary. I have provided a link below, my friend’s referral link, a verified platform for trying out trades and buying Crypto.
Rather than signing up for shares, stocks, Crypto platforms and financial influencers’ loyalty clubs. Most influencers will offer free training and seminars to upsell their courses then. The free seminar is at the top of a sales funnel, which is how most people will generate income. Do not feel pressured by one-in-a-lifetime and time-based offers. These are designed to make you buy so as not to lose out.
3. Invest what you can afford to lose
If you are trying out anything new, like Crypto, trades or other financial life hacks. Only invest/trade with what you can afford to lose. Last year I lost money through Crypto, and have documented it in my article 5 Money Mistakes to Avoid. I sometimes hear of people who lost their life savings through money schemes or scams, which is very sad. I have a pot of money that I use to save, invest, and test the markets.