The Mint app has shut down as of Jan. 1, 2024. For alternatives, check out CNBC Select's ranking of the best budgeting apps.
It's no secret that the younger generation of consumers is increasingly turning to social media to learn about their own personal finances. A 2023 retail investor survey by robo-advisor Betterment found that more than half of Gen Z (65%) and millennials (55%) get advice from social media.
And with more and more money trends taking over social media apps today and influencing how we "should" be using our money — "bougie broke" scenes, "no-spend" challenges, "make the money back" mindset, "cash stuffing" method, "girl math" and so on — we wanted to know when social media money advice is worth it and how it can play a role in our money decisions.
Below, Dan Egan, a VP of behavioral finance and investing at Betterment, weighs in on the survey and provides some psychological context to help you next time you're scrolling.
When social media money advice works
While plenty of people scroll their phones for personal finance advice, they're (thankfully) keeping a skeptical attitude. In the Betterment survey, social media ranks as one of the least trusted sources of financial information, with financial advisors and friends and family marking the most trustworthy front-runners.
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Egan speculates that one of the reasons people keep coming back to social media, despite their doubts about some of the advice they find there, is that they find the stories, tips and hacks relatable in a way personal finance advice from traditional sources isn't. "[People posting] are supplying info that is attractive to different types of people," he tells CNBC Select.
If you come across someone telling you what to do with a bonus paycheck and that person looks like you or is also a single mother like you, for example, you're inherently going to connect with them without thinking about it.
People can get more comfortable and interested in making smart money moves like saving in an emergency fund, saving in a 401(k), etc, because they see the person giving the advice is similar to them in some way, Egan explains. "They get to that point because they felt [a] connection to someone who said that on social media," he says. In fact, 70% of respondents from the Betterment survey report feeling that the coverage they find on social media addresses their needs.
See social media as the first step
Social media's influence on our personal finance actions being a good or bad thing really boils down to how you interpret the advice or trend. Egan adds the caveat that you should largely view what you read, hear and watch on social media as initial information gathering that you can then further investigate before making any big-dollar decisions.
In other words, that video or post should inspire you to do your own research. For example, if you see an influencer praise the "envelope budgeting" system (where you physically sort the cash you have to spend each month into separate envelopes that represent different expenses) wait before rushing off to the office supply store. Instead, get a good look at your finances by using a budgeting app such as Mint or You Need a Budget (YNAB). Then, once you have a better understanding of where your money is going (and coming from), you can decide if that budgeting hack you saw on your phone is really the best for you.
Mint
Cost
Free
Standout features
Shows income, expenses, savings goals, credit score, investments, net worth
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Verisign scanning, multi-factor authentication and Touch ID mobile access
Terms apply.
You Need a Budget (YNAB)
Cost
34-day free trial then $99 per year or $14.99 per month (college students who provide proof of enrollment get 12 months free)
Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the "zero-based budgeting system" where no dollar is unaccounted for). Every dollar is assigned a "job," whether it's to go toward bills, savings, investments, etc.
Categorizes your expenses
No
Links to accounts
Yes, bank and credit cards
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Encrypted data, accredited data centers, third-party audits and more
Terms apply.
Or perhaps while scrolling, you stumble upon a video explaining a quick way to reach financial independence from work that fires you up. Channel that excitement into hiring a financial planner or leveling up your own personal finance knowledge. Fidelity offers a Budget Checkup tool and free credit counseling sessions to anyone. And Charles Schwab offers all account holders the opportunity to make a complimentary financial plan with its Schwab Plan™ when opening any account, even those with no minimums.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance according to the investment strategy chosen
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)
Bonus
Find special offers here
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Bonus
None
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™ and Schwab Organization Account
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Terms apply.
Bottom line
While social media shouldn't be your only source of financial education, it can provide engaging content that inspires you to take better control of your money. Always filter the information you find through sources you trust, and try to balance your enthusiasm with a healthy sense of skepticism.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance and investment review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance and investment products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal finance apps and investment accounts.
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