According to a recent survey, personal finance is the most difficult topic to discuss, even among such issues as politics, religion or death. With some parents avoiding the conversation and many states still not requiring personal finance in the curriculum, young people often turn to social media for financial advice to fill the void.
The latest online professional development session for Delaware teachers from the University of Delaware’s Center for Economic Education and Entrepreneurship (CEEE) explored the world of “Finfluencers,” addressing young people’s common misconceptions about personal finance.
By offering this type of flexible programming, CEEE hopes to engage more teachers in spreading the valuable knowledge of financial literacy and education to create a more financially aware community.
CEEE brought in industry expert Abigail McCloskey, senior financial advisor with Affinity Wealth management, to lead the session. McCloskey has a passion for youth education and talked to teachers about the role that social media and influencers play in how younger generations get financial advice.
McCloskey highlighted how influencers who give financial advice, or “Finfluencers,” can have both positive and negative effects on viewers. While the information some influencers provide can be very helpful, accurate, and backed up with facts, McCloskey pointed to how others may use fear-mongering and scare tactics, and to take what they say with a grain of salt.
“I find a lot of these influencers try to make you seem foolish and isolate you a little bit,” McCloskey said.
McCloskey also spoke about a few famous financial influencers, such as Suze Orman, Dave Ramsey, and Robert Kiyosaki. She pointed out how some of their points are valid and good advice, but other points may not apply to everyone. McCloskey provided the example of how Suze Orman emphasizes the importance of women investing but also can be what McCloskey referred to as “pleasure agnostic” by putting a monetary value on everything, and this may not be something every person needs to follow.
The discussion emphasized the need for teachers and students to understand how to make and grow money, as well as the risks of investing in cryptocurrencies and non-fungible tokens (NFTs). By addressing the challenges that come with teaching financial literacy, CEEE hopes to spread valuable knowledge to teachers who can spread that knowledge to the classroom.
Monica Fisher, a teacher at Delaware’s Woodbridge Middle School in Sussex County, noted the parts of the session that she found to be most helpful.
“This training reminded me of the need and value for adults to teach young people about ‘considering the source of their information,’” Fisher said. “Our society is saturated with individuals who are savvy, creative and persuasive but that does not always equate to being qualified or professionally trained to give financial advice.”
Fisher also highlighted that social media platforms such as TikTok and Instagram may be good places to find inspiration for learning about money, but financial education should not be limited to social media.
Similarly, the session also focused on the issue of fake news and Finfluencers. Agreeing with Fisher, McCloskey emphasized the need for students and teachers to critically evaluate information provided by influencers on social media, as the advice may not always be accurate or reliable. Attendees were encouraged to ask questions and seek out credible sources so they could make more informed decisions about their finances.
As children may be especially susceptible to misleading information from Finfluencers, McCloskey included tips on how to steer children in the right direction, starting with acknowledging the advice they are receiving.
“When you just dismiss your kids, they are going to tune out whatever you say next,” McCloskey said.
She also emphasized the need to encourage curiosity in children by asking questions like “Who is talking?” and “What are their credentials?” when children are watching Finfluencers, as well as knowing the difference between someone who is educating them versus shaming them.
McCloskey also highlighted the importance of helping children get to the answer on their own by praising them for being interested, showing them alternative paths when necessary, and questioning whether more stable knowledge can be provided to them.
Each attendee received a gift card and copies of “The Psychology of Money” by Morgan Housel and “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated” by Helaine Olen and Harold Pollack, provided by the nonprofit YourMoney101.org.
After McCloskey’s presentation, questions and comments were opened up to attendees.
Xiaolin Huang, a social studies teacher at Gunning Bedford Middle School in New Castle County, pointed out some of the benefits of using social media to get students interested in researching financial information, specifically its fun and engaging nature.
“It’s incredibly valuable for young students to start building their financial knowledge early so they are better prepared for the future,” Huang said. “I wish I had learned about investment strategies, tax-saving tips and retirement planning sooner.”
She also noted how students may be more likely to embrace financial concepts on TikTok since they already enjoy and use the platform frequently.
McCloskey emphasized the overall importance of learning and implementing the strategies she provided throughout the session for both teachers and students.
“Financial education, I believe, is an absolute necessity,” McCloskey said. “Understanding how to make and grow money is essential for you to have the money.”
CEEE aims to spread curiosity about financial education among students and praised McCloskey’s presentation.
“Students often bring questions to their teachers inspired by what they’ve heard from FinFluencers on social media,” Amy Krzyzanowski, instructional designer for CEEE, said. “Abby did an amazing job equipping educators with the tools to respond effectively and encourage students to be discerning when it comes to the financial advice found on TikTok, Instagram and beyond.”