Personal finance advice on social media has become a minefield. Between AI tools delivering wrong information and influencers pushing risky schemes, it’s harder than ever to separate helpful tips from harmful trends.
The past few years gave us everything from phantom debt collectors scaring people into paying money they don’t owe to memecoins that crashed within hours of launch. Some trends promised quick wins but delivered financial pain instead.
Not every trend deserves to disappear, though. A few movements actually helped people build better money habits and take control of their finances.
1. Putting our trust in AI for financial advice
After Google launched its AI Overview last year, things got pretty weird pretty quickly. One day, it told us that elephants walk around on two feet. Next, it suggested using Elmer’s glue to keep cheese from sliding off our pizza slices. And its more critical financial advice wasn’t any better.
A College Investor study found that Google AI provides inaccurate or misleading information for more than 40% of finance-related searches. That’s particularly problematic, considering that the wrong financial advice can lead you to poor decisions that cost real money.
I’ve spent quite a bit of time testing and experimenting with Google’s AI features across all kinds of financial questions, from baseline ones like “How do I open a savings account?” to trickier topics around retirement planning. What I found is troubling — while AI might generate the general key points of these answers correctly, it also dishes out plenty of flat-out wrong information and even contradicts itself in the same responses.
Here’s what makes this especially dangerous: When AI mixes both correct information and confidently incorrect statements, we consumers can let our guard down. After reading three or four accurate points in an AI response, we’re more likely to believe that fifth point without questioning it — even if it’s wildly wrong. And Google isn’t alone in its problems with faulty AI advice — I’ve noticed similar issues with ChatGPT, Claude, Meta AI and other AI tools. They all have moments where they sound completely confident while delivering seriously iffy advice.
For example, when I asked about moving funds from a traditional 401(k) to a Roth IRA, Google’s AI Overview provided a contradictory response that advised requesting a direct rollover while also cautioning that you can’t actually make this type of transfer due to tax treatments:
The problem worsens around complex topics like tax obligations, investing your money and refinancing student loans. While AI might handle basic “what is” questions fine, questions requiring nuance or an understanding of recent changes to tax law or economic policy often result in outdated or incorrect information.
Rather than put your faith in AI for financial help, instead rely on direct, reliable sources with a commitment to accuracy, objectivity and accountability, as well as the support of certified public accountants, chartered financial advisors and other certified professionals for your financial advice.
Learn more: How to find a trusted financial advisor for peace of mind in your golden years
2. Getting trapped by phantom debt
Phantom debt is debt that’s old, long paid off, or never existed in the first place — but, regardless, doesn’t stop aggressive collectors from trying to bring these financial ghosts back to life.
In one case last year, the Federal Trade Commission stepped in to stop debt collector Global Circulation from scaring consumers into paying more than $7.6 million in bogus debt. The company threatened everything from arrest to wage garnishment if people didn’t pay up money for debts they didn’t actually owe.
What makes these schemes so tricky is that the scammers often have just enough personal information to sound legitimate. The FTC found that Global Circulation called its victims several times a day, reached out to their family members and left urgent voicemails that made it sound as if they were in serious trouble.
Legitimate companies are legally required under the Fair Debt Collection Practices Act to follow strict rules when collecting debt. This act provides several consumer protections against abuse collection methods, among them:
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Representatives of these companies must clearly identify that they are debt collectors
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Representatives cannot harass, abuse or threaten you with jail time
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Representatives cannot provide false or misleading information and are required to provide documentation proving any disputed debt on request
One way to protect yourself is to send a debt validation letter to any collection agency that attempts to coerce you into paying a debt you never owed. The Consumer Financial Protection Bureau provides free debt validation letter samples you can use to verify what you owe and why you owe it.
Learn more: What is a debt consolidation loan — and how can it help you lower your interest rate?
3. Joining the memecoin mania
Memecoins are like bitcoin and other cryptocurrencies, but inspired by internet trends, jokes or viral moments without any real purpose behind them, making them one of the riskiest trends in crypto investing.
The launch of the Hawk Tuah memecoin (HAWK) perfectly illustrates these risks. Named after a viral TikTok catchphrase by internet personality Hailey Welch, HAWK raised $2.8 million in pre-sales and briefly reached a staggering market value of $491 million before its value plummeted more than 90% within a mere hour after launch.
One X (formerly Twitter) user shared losing most of their $35,000 investment, writing, “I purchased your coin Hawk that you were so excited about with my life savings.” That investment dropped to $2,000 within 10 minutes after the memecoin launched.
This coin chaos isn’t an isolated incident. In recent years, we saw multiple memecoins follow similar patterns: aggressive social media promotion, rapid price increases and then sudden crashes. The people behind these coins tend to target inexperienced investors, preying on FOMO (fear of missing out) and the promise of quick riches, while insiders get away with millions by selling their tokens soon after launch.
In the case of HAWK, a group of insider investors controlled about 80% of the total token supply, according to crypto analytics firm Bubblemaps. These investors immediately sold the coin once it launched, with at least one netting more than $1.3 million in profits.
Instead of chasing highly speculative investments, a better bet for your money is investing it in regulated assets like stocks or mutual funds through investment platforms like SoFi Invest or automated robo-advisors like Acorns.
These companies make it easy to invest in low-cost funds that put your money in hundreds or thousands of companies across different sectors. And while stock market investments can still lose value, they’re regulated by the U.S. Securities and Exchange Commission (SEC) and carry significantly less risk than viral memecoin trends.
Learn more: How to automate your investing with robo-advisors
4. Falling for questionable money hacks
A troubling financial trend emerged last year when social media users began sharing an infinite money glitch that exploited a temporary system error at Chase Bank ATMs. By writing checks to themselves and immediately withdrawing funds before the checks bounced, they were able to temporarily access money they didn’t have.
While many people online celebrated this as a clever hack, it led to serious consequences: Chase sued customers who owed nearly $662,000 in fraudulent withdrawals. In recent years, social media platforms have become filled with other dangerous loopholes. Some schemes involved misrepresenting business expenses on bogus tax returns or manipulating store return policies through fake receipts. ‘
While these might sound like victimless crimes, they can fall under check, mail, wire transfer and other financial fraud that might result in stiff fines, prison time or a combination of both.
Rather than risk legal troubles with questionable financial scams online, look for legitimate ways to invest and grow your money, from cleaning up your finances to budgeting with the help of an app that does the work for you.
Around tax season, you can also use one of the best tax software platforms to save money through legitimate deductions like charitable contributions, medical expenses that exceed 7.5% of your adjusted gross income or qualifying business expenses if you’re self-employed.
Learn more: Tax breaks for people ages 50+
5. Breaking your budget on organizing your things — and not your finances
The organizing trend that swept the internet in recent years wasn’t just about tidying up — it became an excuse for excessive consumption. You can find countless TikToks from people who’ve spent hundreds of dollars on clear containers and matching labels, all in pursuit of the perfectly arranged pantry or closet.
While watching these videos is oddly satisfying, let’s break down an example of how surprisingly costly this trend can get:
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Pantry jars, containers and bins — $200 to $300
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Closet system with matching hangers — $150 to $400
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Bathroom organizers and containers — $100 to $200
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Label maker and supplies — $50 to $75
That’s easily $500 to $1,000 spent on products and systems — money that could have gone into building an emergency fund or paying down high-interest debt. And the actual cost goes beyond supplies. For example, many people in Reddit’s r/organization community talk about buying more items to fill their newly organized spaces or replace perfectly good products with new versions that match their updated aesthetic.
With trends like these, the money you’re investing in the trend can quickly exceed the value or usefulness you’re getting out of it — in this case, the costs of the food or items you’re organizing.
A better use of your money and time is putting them toward stronger financial health with one of the popular budgeting strategies. A particularly useful strategy that’s taken off on social media is the 52-week money challenge. With this simple savings plan, you start by saving $1 in your first week, $2 the next week, $3 the week after and so on, increasing the amount you save by $1 for all 52 weeks of the yearlong challenge, ultimately ending up with $1,378 after just one year.
That’s money you could put into a high-yield savings account for a passive income stream backed by the exponential power of compound interest.
Learn more: My high-yield savings still beats inflation and traditional banks — here’s how
6. Slipping into money dysmorphia
Money dysmorphia is a term used to describe that nagging feeling that your finances aren’t good enough, even when your bank account says otherwise. Just as a person with body dysmorphia worries about perceived flaws in their appearance, those with money dysmorphia might become consumed with feelings that they’re financially inadequate despite maintaining stable finances.
Nearly a third of American adults say they deal with financial anxiety, according to a Credit Karma survey. And the pressure is widespread among younger folks, with some 43% of Gen Z and 41% of millennials experiencing these money worries. Compare that to just 14% of people ages 59 or older who admit to this same mindset, and you can see how it’s hit younger generations especially hard.
Instagram, TikTok and other social media play a big role in fanning the problem, with influencers showing off luxury vacations or designer shopping hauls each time you open an app. An Edelman report found that a third of Americans admit to overspending just to keep up with these “digital Joneses.” And if you spend more than three hours a day scrolling? That number jumps to more than half of those surveyed.
To combat money dysmorphia, start by limiting your social media time and unfollowing accounts that trigger financial anxiety. Focus on defining what financial success means for you personally, and not what you see online.
You might find it helpful to use a top budgeting app to track your actual spending and saving progress for an easily accessible and healthy reality check when those feelings of financial inadequacy creep in.
Learn more: Today’s best budgeting apps: $0 and low-cost ways to track and monitor your money
7. Giving in to doom spending
You’ve likely heard of doomscrolling — that habit of endlessly reading bad headlines and news reports as they’re delivered online. Well, meet its expensive cousin: doom spending.
Doom spending is what happens when people shop impulsively to cope with anxiety about things like politics or the economy.
Not surprisingly, the last holiday season saw a sharp increase in doom spending. Members of Gen Z said they planned to spend 21% more than in the previous year, according to a Simon-Kucher study — that’s way more than other generations. And it wasn’t the result of earning more money, they said, but rather trying to find some comfort in an uncertain world.
Doom spending can land you in a vicious cycle, where heightened anxiety leads to shopping, which leads to money stress, which leads to more shopping to quiet the worry. With credit card delinquencies at their highest point since 2011, this emotional spending pattern has left many people struggling with mounting debt.
Instead of adding to your online shopping cart when you’re feeling worried about the world, pause and ask yourself what you’re really seeking. Is it comfort? Connection? Control? I’ve learned that calling a friend, gardening, watching my favorite show or even writing down my worries often gives me better emotional relief than shopping — and without the financial hangover.
Learn more: 7 steps to budget in retirement and maintain your finances on a fixed income
5 positive financial trends worth keeping
While some financial trends deserve to fade away, several #FinTok movements show real promise, according to a Chime Survey, including:
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Cash stuffing. Instead of letting money float around digitally, people who use an envelope-based budgeting strategy take cash and place it into labeled envelopes marked for groceries, fun money, car repairs and so on. By using physical cash, 17% of survey respondents reported becoming more mindful of their spending and less likely to overspend on impulse purchases.
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Loud budgeting. Gone are the days of whispering about money. Loud budgeting promotes openly discussing saving goals and spending limits with friends and family. This transparency helps normalize conversations about money and develops a sense of accountability. The trend aligns with survey findings showing 76% of Americans are now open with loved ones about their financial planning efforts.
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Girl math. When used responsibly, this trend can playfully justify purchases through calculating value. For example, before you buy a $100 jacket, you’d divide the cost of the purchase over expected time or use — if you wore that jacket 100 times, it could mean you’re paying just $1 per wear. While the math might make accountants cringe, there’s actually some wisdom hidden in the humor. When applied thoughtfully, it can help you think about the real value you’ll get from your purchases over time.
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De-influencing. This counter trend encourages its followers to resist unnecessary purchases and marketing pressure, working as an antidote to “must-have” product recommendations flooding social media. It fits with broader survey findings showing Americans are becoming more selective about financial advice sources, with 52% now fact-checking #FinTok information.
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No-spend challenges. Some 20% of Americans say they tried a no-spend challenge. These voluntary periods of minimal unnecessary spending can help you reset your relationship with money, for example, committing to zero online shopping for a month or no takeout for a week as a financial cleanse.
Learn more: 5 popular budgeting strategies — and how to find the best fit for how you save
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About the writer
Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia’s expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
Article edited by Kelly Suzan Waggoner
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