The Cost of Relying on Online Financial Advice

The internet has made financial information more accessible than ever, but accessibility isn’t the same as accuracy. Today’s money advice ecosystem is crowded, fast-moving, and often driven more by engagement than expertise.

The CFP Board (Certified Financial Planner Board of Standards, Inc.) is a non-profit organization that acts as the regulatory and standards-setting body for Certified Financial Planner (CFP®) professionals in the United States. It establishes rigorous education, examination, experience, and ethical requirements to ensure high-quality, fiduciary-level financial planning. According to the CFP Board’s research, many Americans are turning to online sources for guidance they don’t fully trust — and the consequences are showing up in real financial decisions.

The data tells a clear story: people are seeking financial advice online more than ever. Over half of Americans seek financial advice online at least once a week, mostly from financial websites or social media sites like YouTube, Facebook, and Instagram. "Americans are drowning in online money advice, much of it misleading,” said CFP Board CEO Kevin R. Keller, CAE. “That gap between easy access and reliability puts financial futures at risk."

The most common misleading information we encounter online pertains to investment returns or outdated information generated by AI, though many report misleading advice on a variety of financial topics.

The impact isn’t theoretical — it’s financial. People report real losses, increased stress, delayed decisions, and growing anxiety around money.

Younger adults, in particular, are more likely to rely on social platforms and AI tools for guidance, often confusing visibility with credibility and confidence with competence. “Many Americans mistake popularity for credibility when turning to social media and AI for financial advice,” said Kevin Roth, Ph.D., Managing Director of Research at CFP Board. “That misplaced trust can lead to costly mistakes.

Most often, people cited delaying a financial decision like retirement or a major purchase due to misinformation they received. Others reported paying unnecessary fees, purchasing unsuitable financial products, or feeling an increased sense of anxiety around money. More than half - about 57% - said they regret a specific financial decision they made as a result of misinformation, and of those, 18% said the mistake cost them upwards of $1,000.

So what can you actually do as a consumer of financial content?

Here are practical ways to protect yourself in a noisy financial world:

1. Check the source, not just the message

Look for credentials, regulatory oversight, and fiduciary responsibility — not follower counts or viral reach. Whenever possible, go to the official pages for the IRS, Social Security, or SEC.

2. Separate education from entertainment

Content that’s engaging isn’t always content that’s accurate. Financial advice should be boring before it’s bold.

3. Personalize everything

Even the most reputable outlets like the Wall Street Journal can be misleading when the details aren't contextualized for your specific situation. Be sure you consider all the factors of your circumstances when applying financial information from the web.

4. Be skeptical of certainty

Real planning includes nuance, tradeoffs, and context. Absolutes and guarantees are red flags. Verify anything you read online before taking action.

5. Consult a professional

Financial planners come in every variety. Whether you need ongoing advice, a one-time review, advice by the hour, pro bono, or even an 'ask me anything' style session, it's likely you can find a reputable, credentialed advisor to consult. Look for options at sites like NAPFA.org, XYPN.com, or garrettplanningnetwork.com.

In a world full of financial noise, clarity comes from discernment, not volume. The goal isn’t more information, it’s better judgment, better structure, and better decision-making support.

For more information, download the entire CFP Board survey here.