What are “Finfluencers”?
Gen Z is viewed as a financially irresponsible generation. Reports like the one from the TIAA Institute and the Global Financial Literacy Excellence Center at George Washington University Prove that Gen Z is less financially literate than any of the four previous generations. If this is the case, it is no surprise that content creators have spotted the knowledge gap and have come to the rescue to educate today’s youth! Or…have they?
These content creators are Financial Influencers or Finfluencers. They have become increasingly popular in recent years, with one study finding that Finfluencers had an annual growth rate of followers of 8% in 2021 which Is double that of other influencers at around 4%.
They are growing as more people seek advice on various financial topics such as investments, banking, taxes, etc. Financial influencers are individuals who are experienced and knowledgeable in the field of finances but do not necessarily have any formal certification or educational background in the topic. Instead, they focus on providing advice and tips to others on better managing their finances.
Who exactly are these Finfluencers?
Well, they are bloggers, YouTubers, and other content creators who share their knowledge on their blogs, website, or social media account. TikTok and Instagram appear to be the dominating platform for Finfluencers to post on, thanks to their high endgame t rates and dedicated user bases.
Finfluencers often have a large platform of followers, so their advice carries a great deal of weight to those looking for financial advice.
Financial influencers typically provide advice on topics such as budgeting, investment strategies, saving techniques, retirement planning, credit score improvement, and more. Their advice is tailored to their followers’ specific situations, and they often offer advice across a variety of platforms, including content-sharing websites, video platforms, and social media sites.
It’s important to recognise that Finfluencers may not have any formal education in finance. Many of them draw on their life experiences and share tips on how they have educated themselves informally.
What is cash stuffing?
Finfluencer, Stephanie Garcia is one of the many TikTok creators promoting this trend. The idea is to encourage Gen Z to bring cash back and start using cash rather than the more modern methods of cards and Apple Pay. TikTok is where this message is being spread, with the hashtag #cashstuffing having a vast 1.1 billion views. In comparison, #cashenvelopes enjoys 727.4 million views and #cashenvelopestuffing 190.6 million.
The idea is that using cash feels much more ‘real’ than swiping a card or tapping your phone. When you hold and see the money you’re spending, you might be less likely to splurge on unnecessary items or realise quicker when you are running low. Stephanie Garcia boasts that cash stuffing enabled her to pay off her credit card debt and begin savings accounts for her children.
Personally, I think this is a great way to track your spending! The only downside, is that many retail businesses no longer accept cash since the COVID-19 pandemic, so make sure you always have a card just in case! You do not want to be in one of the cashless Starbucks branches and have to leave without a latte (speaking from experience…).
What are the possible benefits of following Finfluencers?
The benefits of following a financial influencer are numerous. Financial influencers can provide real-time advice and help provide clarity on complicated topics. As they have a good grasp of the finance industry, you can trust their advice and have faith that they are providing you with accurate information.
Additionally, following a financial influencer often means having access to an experienced and knowledgeable mentor that can help guide you through various financial topics.
Many people follow finance influencers and praise them for helping them get out of debt or helping them understand their financial options.
Tori Dunlap is a popular finance influencer often hailed as an iconic figure in this world. Dunlap’s most popular accounts are TikTok, with 2,300,000 followers and 24,500,000 likes, and Facebook, with 31,000 followers and 25,000 likes.
Dunlap published a successful book, “Financial Feminist”, in 2022, an instant New York Times Bestseller. After going through her own financial journey and saving an impressive figure of $100,000 at 25 years old, Dunlap has empowered women with knowledge about personal finance, including negotiating salary, paying off debt, building savings and investing.
What are the possible drawbacks of following Finfluencers?
Of course, it is important to note that the advice provided by financial influencers should not be taken as a substitute for professional advice tailored to your specific situation. These influencers can serve to educate and inform by condensing or explaining financial information in a digestible way. Still, whenever seeking out particular advice for your situation, it is always advised that you should seek out a professional’s help.
Additionally, it is essential to note that some financial influencers may be biased, as they may have an agenda they are trying to push. Therefore, it is crucial to do your own research and vet any advice a financial influencer provides before taking it as gospel and making big decisions.
Our Thoughts…
Reach out to Zodiac Global here to find out how we can help you align your brand with the stars. Or, if you’re an influencer, contact us for talent management services.
