Let’s get one thing straight: debt isn’t new. It isn’t seductive. And it sure as heck isn’t a wealth strategy. But don’t tell that to the financial influencers—finfluencers—dominating Gen Z’s social feeds. Because right now, on TikTok, Instagram, and YouTube, borrowing big and betting on crypto or speculative tech stocks is being repackaged as the next big thing.
Spoiler: it’s not.
Thanks to a toxic cocktail of misinformation and a widening distrust of traditional institutions, social media has become the go-to financial advisor for millions of young people. According to a recent Charles Schwab survey, 38% of Gen Z get their money advice from YouTube. Another 33%? TikTok. And what they’re getting isn’t education—it’s a hustle.
I’ve been in the room where financial rules get made. I chaired the FDIC during the Great Recession. I’ve seen what happens when debt gets weaponized. And what these influencers are peddling isn’t empowerment—it’s dangerous.
The Cult of Debt Disguised as Strategy
Let’s talk about the central myth these finfluencers are pushing: that borrowing money to invest is somehow a shortcut to generational wealth. The narrative goes like this: “Hardworking people earn a paycheck. But the rich? They borrow. Then they invest and win big.”
It’s slick. It’s punchy. And it’s missing a few key facts—like risk, volatility, or the part where you could lose everything and still owe money.
You’ll see these creators tossing around terms like “leverage” and “cash flow” as if they came up with them. But when it comes time to explain how a 23-year-old with $42 in their checking account should vet a commercial real estate deal or a volatile crypto asset, suddenly it’s crickets.
Same Old Game, New Platform
This isn’t innovation. It’s the same speculative, debt-fueled strategy that’s wrecked personal finances for centuries—just with better lighting and algorithmic reach.
Meanwhile, on the other end of these risky transactions are the actual professionals—investors with teams of analysts, reams of data, and contingency plans. In other words, people who eat wide-eyed TikTok traders for breakfast.
And yet here we are, watching young people with limited savings and tight budgets being told to go all-in on highly leveraged gambles. The sheer irresponsibility of it would be funny if it weren’t so ruinous.
It’s Not Just the Debt
Debt glorification is just one flavor of garbage advice being served up.
Some influencers tout aggressive day trading strategies while conveniently ignoring the mountain of evidence showing most day traders lose money over time.
Others urge viewers to shun boring, diversified index funds for flashy, short-term plays.
Some even suggest raiding retirement accounts—like IRAs or 401(k)s—to fund real estate or startup investments, conveniently skipping over the tax penalties, complexity, and high failure rates that come with them.
And then there’s my personal favorite: “Just make the minimum credit card payment and invest the rest.” Right. Because nothing screams “smart money” like building wealth at 20% interest, compounded daily.
Why Are We Letting This Happen?
So why are millions of young people listening to these folks instead of actual professionals?
Because the professionals are boring. They’re regulated, they talk in acronyms, and they wrap their advice in caveats and disclosures. Meanwhile, finfluencers have mastered the algorithm. Their advice is fast, punchy, emotional—and wrong.
But in a landscape where attention is currency, wrong doesn’t mean irrelevant. It means viral.
Here’s the Real Advice (Sorry, It’s Not Sexy)
Look, the basics of personal finance haven’t changed:
-
Spend less than you earn.
-
Stick to a budget.
-
Save consistently.
-
Start investing early using low-cost, diversified index funds.
-
Avoid unnecessary credit cards, high-interest debt, and financial FOMO.
It’s not click-worthy, but it works.
There are credible, regulated places where young people can get solid financial education—for free. FDIC-insured banks, reputable brokerages, and government agencies like the FDIC’s Money Smart program all offer real tools, not TikTok fantasies.
And yes, there are great certified financial planners out there. But even if you can’t afford one, you can still outsmart the algorithm by following evidence, not vibes.
Regulation Isn’t the Enemy—It’s the Lifeguard
I get it: “regulation” doesn’t trend. But when we abandon oversight, we leave the door wide open for digital charlatans to step in and exploit a knowledge vacuum.
The financial industry needs to get off its heels and fight back—not with slick marketing campaigns, but with transparency, clarity, and relevance. Because every time a young investor gets burned by a finfluencer, they lose trust not just in that creator—but in the entire system that failed to warn them.
And that trust? Once it’s gone, it’s hard to get back.
