Why experts are sounding alarm over finfluencers

From budgeting hacks to investing tips, finfluencers are attracting huge audiences. Experts warn trust and viral popularity do not equal qualifications.

Young Australians are turning to TikTok and Instagram for investing tips, budgeting hacks and money advice as the cost of professional financial advice surges.

But experts warn some viral money advice may be misleading, promotional or even illegal, with ASIC cracking down on finfluencers accused of crossing the line into unlicensed financial advice.

ASIC has also warned Australians to be wary of creators promising "easy money" or guaranteed returns online.

Creators like budgeting influencer Breana Davidson, known as "Bree on a Budget", have built huge audiences by sharing relatable savings and spending advice aimed at young Australians

It's easy to see the appeal. The cost of seeing a financial adviser jumped 18% in 2025 to $4668 a year, up 67% over the past five years, according to Adviser Ratings' 2025 Australian Financial Advice Landscape report.

At the same time, more than half (63%) of Gen Z Australians rely on social media for financial information, while 52% say they trust what they see online.

RMIT University Deputy Dean Angel Zhong says finfluencers have helped democratise financial literacy by breaking down complex topics in a way younger audiences understand.

"They speak in plain language, meet younger audiences where they are, and cover topics like budgeting and investing that traditional advisers often overlook for clients without significant assets."

The 27-year-old making millions of views from money tips

Sydney finfluencer AJ Clores started sharing investing content after making successful trades during the pandemic while studying at university.

"I put a lot of money in the stock market and it doubled by the time the market recovered, so I was sitting on a good amount of cash," the 27-year-old says.

Two years later, he has built an audience of more than 105,000 followers across Instagram and TikTok, generating more than 30 million video views, according to his management agency.

While some creators push high-risk investments or property schemes, AJ says he focuses on general financial education aimed at younger Australians.

"There are other ways to build wealth than just saving your salary, including investing, which can pay off in the long run," he says.

But he also acknowledges the risks of taking financial advice from social media, where flashy content and viral popularity can blur the line between legitimate education and misleading promotion.

He operates without a financial licence but says he carefully follows ASIC guidelines when creating content.

"I'm trying to break the stigma around investing, and if you speak factually about information, then it's allowed."

Why ASIC is cracking down

While AJ says he follows the rules closely, other finfluencers have come under ASIC scrutiny.

The regulator has issued warning notices to four finfluencers suspected of providing unlicensed financial advice or engaging in misleading conduct.

Another 15 Australian finfluencers are also being reviewed over content involving shares, exchange-traded funds and leveraged products.

ASIC says the crackdown aims to stop consumers losing money from misleading online financial content.

Why young Australians trust finfluencers

Curtin University lecturer Dr Ivy Hii says trustworthiness, relatability and accessible content help create strong "parasocial relationships" between finfluencers and followers.

"Finance education is shifting from instruction to inspiration, driven by connection, not just content," she says.

But she warns followers may take financial advice at face value without properly questioning whether the information is accurate, balanced or regulated.

For some followers, however, bad financial advice online can come at a real cost.

'Influence does not equal a licence'

Professor Zhong says popularity online does not exempt creators from financial advice laws.

"ASIC has made clear that follower count does not exempt you from the law. Influence does not equal a licence."

She says social media often rewards confidence and viral appeal over nuance and accuracy.

Under Australian law, anyone providing financial product advice that could influence investment decisions generally requires an Australian Financial Services licence.

"Finfluencers work best as a starting point for financial curiosity, not a substitute for personalised, qualified advice," she says.

ASIC Commissioner Alan Kirkland says Australians should carefully check a creator's credentials before acting on online financial advice.

"If someone on social media is promising easy money or guaranteed returns, there is a real risk they're breaking the law, and you could be the one who loses money."

'Be careful who you're listening to'

AJ says many finfluencers are simply trying to make financial concepts easier to understand for younger Australians.

However, he admits some creators damage trust by exaggerating their success or hiding commercial relationships.

"Anyone can rent out a Lamborghini for a day and make out that they make $10,000 a day, and some people will believe that."

His advice is simple.

"Be careful who you're listening to," he says.

"Some finfluencers may not disclose that they have a business behind them and could be trying to lure you into a specific type of investment."

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