Why your children might need our support as 1 in 4 young people seek advice online

In the past, investing was often considered a closed world reserved for the very wealthy, and the average person likely didn’t believe they could benefit. However, that’s all changing as simple investing apps and a wealth of online information mean that more people than ever can start investing.

While this is positive, and it means more young people are building wealth for their futures, it does come with a downside.

Many people are making decisions based on online advice, which is, at best, generic and not suitable for their unique situation and, at worst, completely fraudulent.

1 in 4 young people seek investment advice on social media

A “finfluencer” – financial influencer – is somebody who posts content online giving information and advice about wealth management.

Often, these finfluencers give investment tips, and research shows that many young people use these resources to decide where to put their wealth.

According to Barclays, one in four young people turns to social media for investment support, and your adult children could be among them.

Here are three key reasons why they might benefit from our support instead.

1. Finfluencers are often unregulated and unqualified to give advice

The first major issue is that finfluencers are not typically regulated by the Financial Conduct Authority (FCA), and many don’t have any formal qualifications.

This means that they don’t necessarily have the knowledge and expertise to understand complex financial products and investment strategies, and how certain decisions could affect a person’s wealth.

Additionally, there is very little control over what advice they offer. Although the FCA is cracking down on unregulated advisers, it’s difficult to stay on top of them all, especially as creating a social media account and posting content is so easy.

Unfortunately, the Barclays research found only 49% of Brits did regular checks on the finfluencers they were taking advice from.

Consequently, your adult children could be making important financial decisions based on information from somebody with no real understanding of the issues they’re discussing.

In comparison, a professional financial planner must have the necessary qualifications and be regulated by the FCA.

As such, we must uphold a certain standard, ensuring we are always acting in the best interests of our clients. We can also apply the in-depth knowledge we have gained through formal qualifications and experience.

2. Social media is full of investment scams

Unregulated advice is not the only danger on social media. Your children could also fall victim to investment scams.

Barclays reports that 52% of investment scams now start on social media, and there are various methods scammers might use.

Scammers might contact people directly, offering an amazing investment opportunity. Alternatively, they might use unsuspecting influencers, who might not realise the scheme is fraudulent, to promote it.

In some cases, scammers can even create realistic “deepfake” videos depicting trusted public figures promoting an investment.

If your adult children are using social media to find investment opportunities, there is a strong chance they could fall victim to one of these elaborate scams.

Fortunately, when they work with a financial planner, we can perform due diligence on investments to ensure their wealth is protected. Further to this, we’ll discuss their investment goals and help them find products that align with their aims and attitude to risk.

3. Online advice isn’t tailored to their specific goals

While there are many investment scams and lots of unregulated advice on social media, not everybody is acting in bad faith. Some may have worked in financial services or have relevant qualifications, meaning the content they post is more reliable.

While this financial content could be a useful educational tool, it may not be advisable to act based on its advice because it is generalised.

Finfluencers might talk about ways to invest and generate positive growth, but when designing a strategy, your children need to consider their own reasons for investing.

For instance, do they want to get a head start on retirement, or are they planning to build wealth over a shorter time period to purchase a home? It’s also important to consider what level of risk they are comfortable with.

Their aims and attitude to risk will dictate which investments are most suitable for them.

If they follow generalised advice, they won’t necessarily choose investment products that deliver the necessary growth in the appropriate timescale, making it harder to achieve their goals.

That’s why we start by understanding their short-, medium-, and long-term aims and then build an investment strategy to help them achieve these goals.

Get in touch

If your adult children are interested in starting their wealth-building journey, you can refer them to us.

They can contact us at hello@ardentuk.com or call or WhatsApp us on 01904 655 330. As an award-winning financial advice company with advisers included in the 2025 VouchedFor Top Rated guide, we can assure you that we’re a bona fide company providing excellent advice and high-quality service.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.