Nearly half of Gen Z consumers and a third of millennials now turn to TikTok and Instagram for financial guidance, according to a new NerdWallet survey. The same survey found that more than eight in 10 consumers buy something at least once a year because of an influencer recommendation - and nearly half make such purchases at least monthly.
That combination - social media as both advice source and shopping trigger - creates a real risk of overspending. But experts say the platforms can be used more strategically, and that newer tools like AI chatbots come with their own caveats.
How to make social media work for your budget
NerdWallet's advice is to follow accounts focused on saving money rather than spending. Financial and savings-focused content creators, along with organizations like NerdWallet and The Penny Hoarder, are recommended starting points. The more you engage with savings-related content, the more money-saving advice will appear in your feed.
The bigger issue is vetting who is actually giving you the advice. "Sometimes when you're scrolling through social media, not everyone is an accredited financial advisor or even has a background in finance," said Kimberly Palmer of NerdWallet. "So, you wanna make sure you understand who is giving you this advice, if they're being paid to recommend certain products. It's really important to understand those potential conflicts of interest."
Before acting on a creator's financial tips, check their background and qualifications. AI tools can help with that research - you can use them to verify whether someone has formal training or professional experience in financial management. For finance professionals looking to understand these tools better, resources like AI for Finance and AI for CFOs offer structured guidance on how AI fits into financial decision-making.
Using AI for financial questions without the risk
AI is becoming a more common source of financial information, and it can be a useful starting point for general questions about budgeting or understanding different financial products. The risk, according to Palmer, is sharing too much personal information with these platforms.
"Well, asking AI for financial advice can be a really helpful starting point, especially if you have some general questions about how to budget or understanding different financial products, but what you want to be careful of is entering too much of your own personal information," said Palmer.
She specifically warned against uploading tax returns or other financial documents containing personal data to AI platforms. And before acting on any advice from AI tools or social media, she recommends getting a second opinion from a financial professional or trusted source.
The rise of de-influencing
One counter-trend is gaining traction online: "de-influencing," where creators call out products they believe are overhyped and encourage followers to skip unnecessary purchases. Advocates say the trend could help offset some of the overspending that social media recommendations encourage.
Why this matters for finance professionals
For finance professionals, the practical takeaway is to treat social media and AI as research tools, not decision-makers. Verify the credentials behind any advice you encounter, keep personal financial data out of AI platforms, and cross-check recommendations with a qualified source before acting. The same discipline you apply to your own financial decisions should extend to the tools you use to make them.
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