Key takeaways from the Social Capital Markets study:

• 83% of videos lacked disclaimers, offering a one-sided view of financial decisions.
• 70% of videos encouraged stock-specific investments without sufficient context or addressing risks.
• 57% of stock content implied guaranteed returns, a misleading claim given market volatility.
• 45% of videos encouraged viewers to invest a specific proportion of income, a personal decision that should consider individual circumstances.
• 13% of influencers only had relevant qualifications or credentials to speak on financial matters.

Q. Where should employees turn to get their best financial advice?
A: Employees should prioritize reputable, regulated sources such as certified financial planners (CFPs) or fiduciary advisors. Additionally, financial education resources provided by their employers, professional organizations, or government sites like the SEC’s Investor.gov offer solid, unbiased information. For general guidance, they can consult publications from established financial news outlets like Forbes, The Wall Street Journal, or Bloomberg, which maintain rigorous editorial standards.
 
Q. What can employers do to communicate with employees that so much social media financial advice is misleading? A: Employers can address this by hosting financial literacy workshops, webinars, or providing regular internal communications that raise awareness about the risks of unverified financial advice on social media. Partnering with certified financial planners to conduct Q&A sessions or seminars can also provide employees with credible information directly from professionals, helping them recognize misinformation and make informed financial decisions.
 
Q. What are recommended financial tools employers should offer employees? A: Employers can support employees' financial wellness by providing access to practical tools and resources. This could include budgeting software like Mint or YNAB (You Need a Budget), which help employees manage monthly expenses, track spending, and save.

Additionally, offering a retirement planning platform, such as Guideline or Betterment for Business, allows employees to manage and grow their retirement savings effectively. Financial literacy resources, like access to webinars on retirement planning, debt management, and investing basics, can also empower employees with reliable knowledge to make informed financial decisions.
 
Q. Which generations are most easily swayed by social media financial advice? A: Our study found that Gen Z and Millennials are particularly susceptible to social media financial advice due to their high social media engagement and preference for quick, accessible information. This is partly due to the appealing, influencer-driven format on these platforms that makes financial content appear both accessible and aspirational.
 
Q.  Are there any trusted platforms for financial advice? A: While social media generally presents challenges for reliable financial advice, a few platforms prioritize educational content backed by credible sources. Investopedia and Morningstar offer extensive resources that include articles, tutorials, and tools created by financial professionals. Additionally, NerdWallet and The Balance provide accessible, research-backed advice on personal finance topics. When using any online platform, it’s essential to verify that information is provided or reviewed by certified professionals to ensure accuracy and relevance.