By Julia Herrick

With rent, tuition and grocery costs continuing to climb, many students at Toronto Metropolitan University (TMU)  are turning to social media for investment advice and quick money-saving tips. 

Financial influencers or ‘Finfluencers’ have surged in popularity among young Canadians, offering ideas on budgeting, debt, investing and how to make money quickly. But experts warn while the content is accessible, much of it comes from unregulated creators whose guidance can be misleading or overly simplistic.

According to a survey released by the Canadian Investment Regulatory Organization (CIRO), one in five Canadians report using social media and seeking financial advice from financial influencers.

For students juggling tuition, rent and everyday expenses, distinguishing between sound guidance and risky shortcuts has become increasingly challenging.  

Rubina Ahmed-Haq, a personal finance consultant, explained that social media can be useful for simple money-saving tips, such as cutting grocery costs. However, she also warned that people need to be cautious when it comes to more serious advice, such as investing. 

A recent Ontario Securities Commission survey found that 35 per cent of Canadian retail investors made a financial decision based on a social media “finfluencer,” and those who did were 12 times more likely to have experienced social media
investment scams.

Ahmed-Haq warned against get-rich-quick schemes that claim you can make money fast. 

“When saving for your long-term financial goals, it is not as advisable,” she said. “These influencers aren’t qualified and don’t have the life experience dealing with money.”

She added that many are drawn in by success stories that make investing look effortless. 

“If they’re giving you the impression that you can make money quickly, you may be basing your own results on their experience,” she said. “Which is a really dangerous way to manage your money.”

Disha Mehta, a third-year sociology and crimonology student at TMU, said she takes financial advice online “with a grain of salt.” She added that she sometimes trusts financial influencers who have a background in finance or accounting over those who don’t.

“The advice that social media gives is very general,” Mehta said. “The advice that they give won’t necessarily apply to everyone, right? Because everyone’s situation is unique…it’s good for some ideas. Don’t make it your whole blueprint.”

Brendan Lin, a second-year computer science student said he would prefer someone with a degree in finance or someone with a financial background when considering financial advice online.

“Sometimes I get help from social media, but I also get advice from my best friend who’s studying business,” Lin said. 

The CIRO noted that many influencers lack formal training or certification and aren’t subject to regulatory oversight, making it difficult for audiences to know whether the information they share online is factual or reliable.

Ahmed-Haq advised students not to go online for financial advice. Instead, she suggested students find trustworthy advice at a financial institution or read published work from experts.

“I recommend reading published work by individuals who have all the credentials,” she said. “Such as [people] working at a bank, as they have more information about what’s happening in the markets.”

Candice Zhang, a third-year retail management student, said she took some finance courses that have equipped her with a bit of knowledge to help her manage her funds. 

“Being in business, I’ve taken lots of finance courses,” she said. “I feel like because of my background, I don’t really tend to listen to hearsay.”

Zhang conducts her own research online using Yahoo Finance for information about the stock market rather than blindly trusting influencers. She notes that even when social media advice sounds reasonable, it often overlooks the reality of student life.

“Their life stages and my life stages are so different because they’re working full time,” she said. “ I don’t have the luxury to work full-time right now because I’m in school…Why am I using their tips to match my life with that?”

A recent survey conducted by the Financial Consumer Agency found that Canadians who received financial education scored about four points higher in financial knowledge and felt more confident managing their money compared to those who did not.

Coleen Clark, a former finance professor at TMU, advised students to take a personal finance course at the university to help guide them on how to make more educated decisions about their money. 

“My advice would be to track down an introduction to financial planning for non-finance people,” said Clark. “It would be well worth taking because it is just the fundamentals without getting bogged down into the numbers.”

However, Clark says the bigger issue is how easily misinformation spreads online. 

“The issue with influencers is that there’s no editor,” Clark said. “So there’s nobody saying ‘this doesn’t totally make sense. Could you clarify this, or what’s your source on this?’”