Social networks, the new financial advisors for young people

© Unsplash/Jonas Leupe

Social networks are omnipresent. They entertain us, but now they do so much more! Today, many Internet users use TikTok as a search engine. Whether to find a recipe, a coffee or an activity to do, the search bar of the Chinese social network is used more and more. It is sometimes even preferred to Google.

As social networks increasingly influence Internet users, it is not surprising that younger people turn more readily to social networks than to banking establishments to find out what to do with their savings .

Young people follow advice from social networks

On social networks, content creators establish themselves as “good friends” who advise just about anything and everything. When it comes to Uniqlo's new fanny pack or the latest trendy bar, it's no big deal. But when money comes into play, it's more problematic.

As there are gaming, fashion, travel, cooking influencers, there are also creators specializing in finance. These “finfluencers” popularize investment with adapted and short formats using the codes of social networks. This speaks much more to Internet users than the very specific jargon of their banker. Enough to make these videos go viral. But this opens the door to misinformation and scams.

We should not put everyone in the same basket. Some influencers can provide very good advice and demonstrate impeccable ethics. But others are less benevolent, not necessarily specifying paid partnerships, or are not sufficiently knowledgeable to provide investments that are always relevant. Remember, however, that investing carries risks of capital loss. The rise of cryptocurrencies (and particularly bitcoin) a few years ago reinforced this impression that investing and getting rich is within everyone's reach.

In In the current economic context, these promises are enough to make the eyes of many users shine. An OECD study shows that there are more and more young individual investors under the age of 25. They were only 8% in 2020, while they were 19% in 2023.

Currently, the French lack education and financial information. This is what Anne-Claire Bennevault, founder of the Spak platform, expert in education and financial inclusion, says. Allowing them to be better informed about economics would make them less gullible and give them weapons in the face of the proliferation of viral videos on social networks.

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