A new study by MoneySmart reveals that social media has become the go-to source for financial advice in Singapore.
Over half (51%) of adults rely on platforms like YouTube, Instagram, Facebook, TikTok, and WhatsApp for financial guidance.
This marks a significant shift away from traditional sources like family, friends, and financial advisors.
The study, which surveyed 1,000 Singaporean adults across all age groups, found that social media is influencing key financial decisions.
YouTube is the most popular platform for seeking financial advice (70%), followed by Instagram (44%), Facebook (43%), TikTok (36%), and WhatsApp (31%).
This trend is particularly prominent among millennials, 61% of whom seek financial information online every week.
Across all age groups, the most popular topics include investing (59%), saving (59%), and budgeting (39%).
Furthermore, the study found that 21% of respondents have changed their spending habits due to social media, with 30% starting a budget, 18% initiating an emergency fund, and 12% increasing their retirement savings contributions.
Nearly one in three (26%) Singaporeans have opened a savings account, while 16% have applied for a financial product such as a credit card or loan due to social media advice.
The Rise of Finfluencers
This rise in social media usage for financial advice has also led to the emergence of “finfluencers” – financial influencers who offer guidance and insights online.
While many finfluencers focus on general financial education, the Monetary Authority of Singapore (MAS) has emphasized that those providing financial advice must be licensed under the Financial Advisers Act.
This applies to individuals recommending or expressing opinions on investment products in exchange for payment, as well as those doing so regularly without remuneration.
General educational content, however, is exempt from these licensing requirements.
Globally, finfluencers are experiencing significant growth, with an analysis of follower counts from over 800,000 influencers on Instagram and YouTube finding that financial influencers saw double the follower growth over the past year compared to other influencer types.
In Singapore, 44% of respondents now follow specific financial influencers for advice, with popular names like Adam Khoo, Warren Buffett, and Dave Ramsey standing out.
Half of Singaporeans surveyed said a financial influencer has motivated them to take a greater interest in their finances, underscoring the significant role these individuals play in increasing financial awareness and engagement.
MAS also noted that financial institutions using finfluencers for advertisements must ensure that content is balanced, clearly presenting both the features and risks of financial products.
While complaints about finfluencers are rare—with MAS receiving fewer than five annually over the past five years—most cases involve individuals who do not provide regulated financial advice.
Combatting the Rise of Misinformation
While social media offers convenient access to financial information and influential personalities, the study also highlighted potential risks.
Many respondents admitted to making investment decisions based on social media advice, with popular choices including US stocks (40%), cryptocurrency (35%), and bonds (28%).
However, 16% of respondents reported losing money on investments influenced by online advice, and another 16% fell victim to financial scams.
This underscores the importance of critically evaluating information found online, especially as 72% of respondents encounter financial advice passively through their social media feeds.
For example, users should be wary of misleading claims like “100% win rate strategy” or clickbait headlines designed to lure them into risky investments.
“While it’s encouraging to see more individuals engaging with their finances, it’s crucial to ensure the credibility and accuracy of the information they rely on. At MoneySmart, we go beyond just connecting consumers to personal finance products through our marketplace.
With resources like our blog and licensed insurance specialists, we are committed to providing well-researched advice and practical guidance to help people make sound financial decisions — whether it’s investing, saving, budgeting, choosing the right credit card or loan, or selecting an insurance plan.”
said Abel Lee, General Manager at MoneySmart Singapore and Hong Kong.
Featured image credit: Edited from Freepik
