Learning Center
Don’t Get Played by a “Finfluencer”: Why Your Tax Pro Should Be Your First Call
In an era where financial advice is just a scroll away, many individuals, especially from younger generations, are turning to social media platforms like TikTok, Instagram, and YouTube for guidance on managing their finances. While these platforms offer a seemingly endless supply of content, the old adage of “don’t believe everything you read on the internet” definitely holds true in the world of finance.
The Allure and Risks of Social Media Financial Advice
Social media's appeal lies in its accessibility and the relatable, casual tone of its creators. But there’s a catch: not all “finfluencers” are qualified, or even honest. According to a recent Fast Company piece, some social media personalities are less about education and more about exploitation.
“Some bad actors see dollar signs in a vulnerable audience,” the article warns, especially when it comes to pushing risky investment strategies or get-rich-quick tax hacks.
A study by WallStreetZen backs this up, showing that 63% of stock-related videos on TikTok are misleading. Despite this, these videos often rack up millions of views and shares—illustrating how easily misinformation spreads under the guise of helpful advice.
The California Department of Financial Protection and Innovation (DFPI) has issued its own warning, noting that many creators “earn commissions on the products they push” and are not obligated to prioritize consumer financial well-being.
A Cautionary Tale
One recent case involved a viral TikTok trend encouraging young workers to change their W-4 withholding to “exempt” in order to boost their take-home pay. A number of users were hit with unexpected tax bills after taking the advice at face value. One young woman featured in a Yahoo Finance story said she now owes nearly $5,000 to the IRS and admitted she didn’t even know the difference between withholding and tax liability until it was too late.
These situations prove why it’s so critical to verify any tax or financial “hack” with a certified professional.
The Importance of Professional Financial Guidance
While social media can serve as an introduction to financial topics, real strategy should always come from licensed tax professionals, CPAs, or financial advisors. These experts are trained to understand your personal situation and can build a long-term plan that won’t land you in legal hot water.
Brad Clark, an investment advisor, told Bankrate, “A lot of social media advice is designed to evoke fear or greed. That’s a red flag right away.” He adds that trusting random advice on TikTok can lead people to gamble with their financial futures.
Spotting the Red Flags
When you come across financial advice on social media, take a moment to step back and evaluate:
Does the creator offer proof of credentials?
Are they selling a product or service that benefits them directly?
Do they claim guaranteed returns or “secret” tax loopholes?
Are they discouraging you from speaking with a licensed professional?
If any of these apply, it’s best to scroll on and seek advice from a trusted source.
Final Thoughts: Trust Your Tax Pro
We don’t just file forms. We serve as your financial safeguard year-round. At this office, we know the rules, stay on top of the latest updates, and help you avoid costly mistakes. Most importantly, we act in your best interest, not for clicks, likes, or affiliate commissions.
When questions come up, don’t turn to social media for advice. Contact this office. Your future self will thank you.
NEVER MISS A STORY.
Sign up for our newsletters and get our articles delivered right to your inbox.
Rose Tax & Financial
Cedar Crest, New Mexico 87008
Sat: 10:00am to 2:00pm
Check the background of your financial professional on FINRA's BrokerCheck
Avantax affiliated Financial Professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC, Investment Advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd., Suite 100, Dallas, TX 75019. 972-870-6000.
The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third party website.
This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences.
For Important Information and Form CRS please visit https://www.avantax.com/disclosures.