Financial influencers—also known as ‘finfluencers’—are popping up like mushrooms.
The term "Finluencer" refers to a social media influencer specialising in promoting financial products and advising on specific investment strategies.
On social media, anyone can pose as a financial expert, with all the potential risks and consequences that that entails.
They mix charismatic personality with entertainment and education to promote financial products. NBC University reports that “more than a third of GenZ goes to TikTok and YouTube for financial advice.” [1] The report tells that top Finfluencers can earn between $275,000 and $750,000 each year by posting two sponsored posts a week.
It goes on to say that “At its worst, however, Finance TikTok perpetuates financial myths, scams, and dangerously misleading information. What users end up seeing is often nott good advice from trusted sources, it’s just one random person’s experience.”
Nannerl Kok, a researcher at the Dutch Tilburg University writes, “The growth of finfluencers on online platforms is hugely risky. People who have little to no knowledge about investing can present themselves as financial experts on social media. Rapper Boef is one such example. He offers courses and provides young people with financial recommendations so they—like him—can become financially independent.
‘Young people see him as a role model and are more likely to follow his recommendations as a result. That such a person could potentially encourage non-professional investors—people like you and me—and young people to make the wrong financial choices, I find worrisome.’ [2]
Just this week, Dutch media reported that hundreds of Dutch investors lost at least € 5 million to an investment platform which was promoted by several ‘finfluencers.’
Listening to ‘finfluencers’ comes with lots of risks. They often show conflict of interests, collaborating with products and receiving compensation, prioritising financial gain over their audiences best interests. They are not experts, trusting more in personality and style than good knowledge and expertise, and they often portray unrealistic expectations.
Who are you listening to?
When it comes to investing, Christians should seek guidance from biblical principles and values to make wise and ethical investment decisions. Here are some key areas of guidance that a Christian should consider:
Prayer and Seeking God's Will: Christians should begin by seeking God's guidance through prayer. Investing decisions should be aligned with God's will for their lives and reflect their values as followers of Christ.
Ethical Considerations: Christians should evaluate the ethical implications of their investments. This involves assessing whether the companies or industries they invest in align with their values and biblical principles. They should avoid investing in businesses involved in practices that go against their convictions, such as those that promote immorality, exploitation, or harm to individuals or the environment.
Stewardship: Christians are called to be responsible stewards of the resources entrusted to them. When investing, they should consider factors such as risk management, diversification, and long-term financial goals. Wise investing includes balancing potential returns with an understanding of the associated risks.
Research and Due Diligence: It is important for Christians to conduct thorough research and due diligence before making investment decisions. They should consider factors such as the financial health of the company, its track record, the stability of the industry, and potential risks. Seeking professional advice from financial experts can also be beneficial.
Socially Responsible Investing: Christians can explore socially responsible investment options that align with their values. This may involve investing in companies that demonstrate responsible environmental practices, promote social justice, or support initiatives that positively impact society.
Diversification: Christians should consider diversifying their investment portfolio to reduce risk. Spreading investments across different asset classes, industries, and regions can help minimize the impact of market fluctuations and potential losses.
Long-Term Perspective: Christians should approach investing with a long-term perspective, understanding that wealth accumulation is not an end in itself. They should consider how their investments contribute to their overall financial goals, such as providing for their family's needs, supporting charitable causes, and furthering God's kingdom.
Seeking Wise Counsel: Christians can seek advice from trusted mentors, financial advisors, or other knowledgeable individuals who share their values. It is essential to consult experts who understand both financial principles and the ethical considerations that align with a Christian worldview.
Ultimately, our approach to investing as a Christian, should be guided by a desire to honour God, make responsible choices, and use financial resources in ways that reflect biblical values. By seeking wisdom, practicing discernment, and considering the impact of investments on both personal and societal levels, Christians can strive to invest in a manner that aligns with their faith.
“Don’t copy the behaviour and customs of this world, but let God transform you into a new person by changing the way you think. Then you will learn to know God’s will for you, which is good and pleasing and perfect.” (Romans 12:2)
Join a Compass group and discuss your investment plans with other believers, pray together and seek God’s wisdom!
[1] https://together.nbcuni.com/wp-content/uploads/sites/3/2023/03/Rise-of-the-Finfluencer-.pdf [2] https://universonline.nl/nieuws/2023/04/24/finfluencers-are-popping-up-everywhere-who-protects-the-investor/