How social media advice affects financial planning

Social media influencers have made financial planning more accessible to a wider audience, from diverse walks of life. They share their best tips and tricks around all tenants of personal finance, allowing people to connect with influencers they resonate with. However, not all finance influencers are certified financial advisors and it is important to understand that personal finance is unique to everyone and one size does not fit all. Shreyaa Kapoor, Content Creator-Finance, Ex - Bain said that DYOR or doing your own research is essential before doing your financial planning.

Finance as a subject is very vast and filled with jargon that is very difficult to comprehend. Additionally, it is one of the topics which is never touched upon during schooling, home learning, or even in college, unless someone takes up commerce or finance as an undergraduate. This leads to numerous people being financially illiterate and being susceptible to the marketing gimmicks of financial institutions, said Anushka, Digital Content Creator - Business & Finance.

Many of our generation and our parent’s generation are not aware of the options available to them, or how they can personalize their finances for themselves.

“An example I can give from my own home is my Dad. He has been making FDs for decades but was never made aware of customization options available by his banker. He got to know only after I discussed cumulative and non-cumulative FDs with him. And now, he customizes them according to his needs,” said Anushka.

Individuals who look to fix their finances often follow influencers to learn about the latest trends and investment opportunities. However, these financial talks are general in nature and may not be tailored to each individual's needs. Ujjawal Pahwa, Content Creator - Finance, CS said for example, if someone has a home loan running, they can take a combined deduction of 3.5 lakhs under Section 80C for principle payment and Section 24B for Interest on home loan. Another deduction can be the Standard Deduction which depends on whether the individual is salaried or not.

Social media users should be cautious about the content they consume and seek professional financial advice before making any significant financial decision, Ujjawal Pahwa further added.

Ayush Shukla, Creator & Founder, Finnet Media said that financial influences can help people stay on track and diversify their investments. It helps them understand what options they have and opens them up to different types of segments, such as equity, debt, crypto, and more.

The growth of finfluencers has opened up a new avenue of finance content that is easily digestible and leads to actual financial awareness which was missing.