Follower counts don’t equal credibility
Tina Mistry, CEO and president of Fresno-based Portfolio Advisors, said consumers should approach financial content with some skepticism, particularly when it appears the creator is trying to sell something. Algorithms are built to target users’ interests, she said, which makes it easy for consumers to encounter tailored financial content. “Someone is likely trying to sell you a product or service,” Mistry said. High follower counts complicate the problem further. A creator with thousands of followers can appear more credible simply because of audience size, but Mistry said popularity shouldn’t be mistaken for good advice. “Follower count is not necessarily indicative of good financial advice, “she said. Instead, she — like Molina —recommends looking at credentials, experience and testimonials from people who have actually worked with the adviser or creator. Consumers should also weigh whether a recommendation explains both the risks and the potential rewards of an investment. Mistry said every investment carries some level of risk, and investors should understand their own risk tolerance before putting money in. “There’s no such thing as a risk free investment,” she said. How to verify what you see For Central Valley residents who want to verify what they find online, Mistry risk-free speaking
How to Verify what you see
For Central Valley residents who want to verify what they find online, Mistry suggests speaking with multiple financial advisers and asking each the same question. Independent advisers — particularly ones who work with clients in similar circumstances or life stages— can be a useful starting point, and comparing their answers can help separate genuine advice from marketing. Molina also recommends researching financial professionals through government agencies, including the California Department of Financial Protection and Innovation, the U.S. Securities and Exchange Commission and the Federal Trade Commission.
Closing the literacy gap
Financial literacy education could ultimately reduce reliance on social media for that guidance, Mistry said. The BrokerListing.com report cited separate research from S&P Global finding that only about one-third of adults worldwide demonstrate basic financial literacy — a gap that helps explain why short, simple explanations of money topics spread so quickly online. Mistry is encouraged by efforts to introduce financial literacy into K-12 education and believes personal finance courses should also be part of post-high school education. Fresno State offers an undergraduate personal finance course, though Mistry noted it’s an elective rather than a requirement. Social media can still be a useful starting point for learning, she said, but consumers shouldn’t mistake a30-second video for comprehensive financial planning. Mistry recommends doing independent research, verifying claims with qualified professionals, and taking time before making financial decisions based on something seen online.
