How to teach others about finance

For many adults, money is often a confusing topic. Although 56% of Americans say they would give themselves an A or B grade when measuring financial literacy, 75% say they could still benefit from the advice and answers of a financial expert.

According to the National Financial Educators Council, a lack of financial literacy cost the average American $1,389 in 2021. And according to the 2022 Investopedia Financial Literacy Survey, 57% of American adults are invested, but only one in three say they have advanced investing knowledge.

Becoming a personal finance influencer is something you might consider if you are knowledgeable about money and want to share what you know with others.

Key points to remember

  • A majority of Americans (75%) say they could benefit from professional advice and answers to common financial questions.
  • Becoming a personal finance influencer is an opportunity to use your knowledge to teach others about money.
  • Obtaining a financial certification can help build expertise and improve credibility as a personal finance influencer.
  • Leading by example and being authentic are two of the best ways to build a brand and following as a personal finance influencer.

Strategies to improve your financial literacy skills

What is a personal finance influencer?

An influencer is someone who can attract and maintain the attention of a target audience and influence the behavior and habits of that audience, usually through content shared via a blog, website or platforms. of social media. A personal finance influencer is someone who uses their visibility to specifically teach others about finance and good money management.

Personal finance influencers can make money by sharing what they know. They may provide content and information for free, but they may also generate revenue through their efforts. Here are some of the ways they can make money teaching others:

  • Monetize a YouTube channel
  • Getting paid for sponsored posts or content on social media sites, such as Instagram or TikTok
  • Monetize a blog with ads or sponsored posts
  • Earning Commissions Through Affiliate Marketing
  • Sell ​​digital products, such as e-books, courses, or financial “printables” (downloadable files that can be printed)
  • Offer individual or group financial coaching
  • Sell ​​physical products, such as books, guides, and budget planners
  • Become a brand ambassador for brands in the financial sector
  • Get paid speaking fees

More and more Americans are turning to influencers and social media for financial advice. For example, 27% of Gen Z and Millennial adults say Twitter has impacted their financial decisions, while 32% said the same about Instagram. TikTok, Snapchat, Pinterest, Facebook and Reddit are also attracting young adults who want to deepen their financial knowledge.

It’s not hard to see the appeal of this approach. Social media content is easy to access and digest for young adults, who want to be able to quickly skim blog posts on budgeting or watch a TikTok video that includes some helpful money-saving tips. And many personal finance influencers are in the same age bracket or have had similar struggles with money, so it’s easy to relate to them.

How to Become a Personal Finance Influencer

Teaching others about money and building an audience isn’t necessarily an easy process. To succeed and join the ranks of the most visible influencers, you need a dedicated following. So the first step in teaching others about money is understanding who you want to help with your advice and what problems you can help them solve.

Identify your audience

The easiest way to determine who your target audience should be is to look at your personal financial situation and background. For example, if you’re a single woman in your 20s, you might want to offer financial advice aimed at other single women in their 20s. If you’re a father of two in your 30s and are focused on early retirement for you and your spouse, you may be targeting other 30-somethings interested in the FIRE movement, which is short for financial independence. , take early retirement.

The goal as an influencer is to be a solution provider. Think about the kinds of challenges you may have faced with your finances, what you learned from them, and how it can translate to helping people in your target audience.

Find your audience online

When you know who you want to help learn about money, the next step is to find out where they are. For example, if you want to help Gen Z or Millennials, chances are you’ll find them on social media platforms looking for advice. TikTok, for example, can be a great place to share short videos with financial tips or money hacks.

Your target audience might also be interested in reading blog posts that cover financial topics on a deeper level, so it might be worth creating a personal finance blog or website to connect with your audience.

Prove your authority

There are a lot of people on the internet who talk about money but aren’t necessarily experts. If you want to establish yourself as a personal finance influencer, you will need some credibility and authority to build your brand and followers.

This could mean investing in your own financial education or getting professional financial certification. For example, you could become a Certified Financial Education Instructor (CFEI). This certification covers a range of topics, including budgeting, debt, credit, and savings, and it also teaches you how to educate others on these topics.

Of course, there is an investment of time and money involved in obtaining a professional financial certification. Still, it might be worth it if it earns you the trust of your audience early on in your journey as a personal finance influencer.

The FTC requires influencers and social media marketers to make certain disclosures to their audiences, including when they are paid to mention specific brands or share links.

Create and promote your content

People who turn to personal finance influencers do so because they want answers, so you’ll need to provide them with content that offers those answers. Again, this can include:

  • Podcasts
  • Blog posts
  • Email newsletters
  • electronic books
  • Social media posts
  • YouTube videos, TikTok videos or Instagram reels
  • Free courses, webinars or workshops
  • Live or Evergreen Classes

Understanding who you want to help with money can make it easier to decide what type of content to create.

How do you teach someone finance?

If you don’t want to become an influencer, you can still teach others about money by having regular conversations about financial topics. For example, if your parents are older, you might want to talk to them about managing money in retirement or how to protect yourself from Social Security scams. And if you have kids, you can teach them the basics of budgeting and develop a saving habit.

What is a personal finance influencer?

A personal finance influencer is someone recognized and known for sharing financial tips and strategies, usually via social media platforms and/or a blog. They may not hold financial certifications or have previous experience in the financial services industry. Instead, they use their own experiences with money to guide others on how to manage their finances.

Is it legal to give financial advice on social media?

Anyone can share financial advice on social media, but it’s important to consider the legal ramifications of doing so. Personal finance influencers typically post a disclaimer informing their audience that any advice or recommendations shared should not be considered professional advice and that they may wish to seek the assistance of a financial advisor. They are also required to disclose their affiliate relationships when recommending financial products or services.

How much do social media influencers earn?

The amount of money a personal finance influencer can earn depends on their audience, how many followers they have, and how they choose to monetize when teaching others about money. Some can earn peanuts, while a select few can earn up to six or seven figures.

The essential

Becoming a personal finance influencer is something you might consider if you are passionate about money and want to teach others how to master their finances. Doing your research beforehand can help you determine who can benefit most from your financial information and how to provide the type of content they are looking for.

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