According to the expert, financial topics on social networks are presented briefly, simply, and attractively. This is one of the reasons why young people increasingly learn about saving, investing, or budget planning not from textbooks or bank pages, but from videos on their phones.
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“Social networks have made financial topics much more interesting. Topics that previously seemed complicated or meant only for specialists are now explained in a matter of seconds. This can be a good start to becoming interested in your money, but it is also important to understand that a short video rarely reveals the full context,” says A. Mincienė.
Easy content can encourage interest
Financial content on social networks can also play a positive role. It encourages young people to talk about money, to be interested in saving, investing, financial cushions, or long-term goals. Such topics become less intimidating, and finance becomes closer to everyday life.
However, according to the expert, problems arise when advice is presented as universal solutions for everyone or promises quick returns without clearly stated risks.
“If a video encourages you to learn what investing is or why it is worth having savings, it can be useful. The risk begins when the content urges you to urgently buy a specific stock, cryptocurrency, or other instrument because ‘now is the last chance.’ In financial decisions, haste is often one of the biggest risk signals,” notes A. Mincienė.
When advice is dictated by an algorithm
Financial trends spread very quickly on social networks. One day a particular stock gets a lot of attention, the next day cryptocurrencies, the third day passive income or so-called get-rich-quick methods. Such content is characterized by relying on emotion, success stories, and fear of missing out.
According to the expert from Luminor bank, it is especially important for young investors to distinguish educational content from advertising or personal opinion.
“Investment trends are not the same as investment strategies. What is popular on social networks is not necessarily suitable for a specific person, their income, goals, or risk tolerance. Before making a decision, it is important to understand what you are investing in, what the possible return is, what the risk is, and what would happen if the investment value decreased,” says A. Mincienė.
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How to recognize reliable information?
One of the simplest ways to evaluate financial content is to see if it talks not only about potential benefits but also about risks. More reliable sources usually do not promise guaranteed returns, do not encourage immediate action, and explain that financial decisions depend on individual situations.
You should also pay attention to the profile of the person sharing advice – whether the person has experience in the financial field, clearly indicates the boundary between general information and personal opinion, and discloses if the content is promotional or related to a specific product.
“If you hear promises of getting rich quickly, guaranteed earnings, or not missing the ‘only opportunity’ in the content, it should raise doubts. Reliable financial information usually sounds less impressive, is more cautious, clearer, and based on a broader context,” says A. Mincienė.
First – financial basics
The expert emphasizes that before investing, you should take care of the financial basics – understand your income and expenses, have a financial cushion, assess your existing obligations, and only then think about investment instruments.
For young people, social networks can be the first step toward financial literacy, but final decisions should be made after verifying information from several sources, consulting specialists, and assessing personal goals.
“A good financial decision is rarely made in a few seconds. If advice on social networks seems interesting, it is worth taking it as an invitation to learn more, not as an instruction to act immediately. Financial literacy begins not with a perfect answer but with the habit of asking, checking, and not rushing,” says A. Mincienė.
