(WTNH) — From Facebook and Instagram to TikTok and everything in-between, it’s no secret: social media is king when it comes to connecting.
While these platforms are great for a lot of things, experts say financial advice shouldn’t be one of them.
“You have a lot of information that’s being provided by influencers,” Bill Leavitt of Bridgelight Financial said. “Influencers want to make money, so you have to make sure what you’re looking at is real and realistic.”
Leavitt said to validate information you’re getting. It’s one thing for influencers to advertise products and businesses, but it’s another when they’re encouraging you to “buy into” a new way to “make” money.
“They provide ‘get rich quick’ schemes that you think will get you to quit your job, when in reality, they’re just looking to get you to look at what they’re looking at to make money,” Leavitt said.
He said social media is beneficial when it comes to getting you thinking about the important things in life — saving money, getting deals, and having extra money to put away your future.
Another red flag is when you start getting opinions on investing.
“The crypto pump and dump, trading strategies, options strategies — these are the kinds of things that most people will want to stay away from,” Leavitt said. “These are the things that are very risky, a lot of people don’t understand their impact and negative impact on their investing.”
Bottom line is to keep social media…social. If you find yourself opening up your bank account to tips you see online, take a step back away from it.