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, new research reveals.The Personal Finance Report 2023, by VoucherCodes.co.uk, investigates the impact that 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, it’s Millennials who 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 are the most likely to lose money from trusting online influencers, with nearly half (47%) stating they have lost money in this way. When it comes to 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 are 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 does come with its risks, as seen in the number of people unfortunately 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 own 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.”
