Who should you trust with money advice?

Financial advice can come from all directions, whether you’ve asked for it or not - so it can be hard to know who to listen to.

According to Skipton Building Society, nearly four in ten (39%) people have been given unsolicited financial advice.

Meanwhile, almost half (44%) have heard financial “pearls of wisdom” in the most unexpected places.

For example, 15% say they’ve had financial advice from strangers in the pub, and 8% have had suggestions from taxi drivers.

With so much advice circulating, it’s perhaps no surprise that more than half of people (51%) struggle to know which financial guidance they can actually trust.

The best financial advice people have received

Of course, not all advice is bad, and some of the most valuable tips will also be the simplest.

For example, almost a third (29%) of those polled by Skipton said the best advice they ever got was to build an emergency fund.

And others valued being encouraged to:

• live below your means
• try not to get into too much debt
• track your spending
• avoid high-interest debt

These principles might sound basic.

But together, they form the basis of strong financial habits and can help people manage their money more confidently.

Some people are getting risky advice

As you’d expect, not everyone is lucky enough to get good financial advice.

More than one in five (21%) said they’d been encouraged to “just put it on a credit card”, even if they weren’t sure they could afford to pay it back.

Other questionable advice people reported hearing included:

• “Just enjoy the money now.”
• “Crypto will make you rich.”
• “Small expenses don’t matter - just ignore them.”
• “Don’t worry, you’ll inherit money later in life.”

It’s a reminder of why it’s so important to think carefully before taking any financial advice and making sure you’re getting tips from a trusted source of information.

How to protect yourself from bad financial advice

If you want to make sure you’re getting trustworthy information:

Check for FCA accreditation

Find out if the individual or company giving financial advice or promoting financial products is regulated by the Financial Conduct Authority (FCA).

An FCA-regulated professional must meet minimum standards, so you can be confident that you’re getting expert advice based on your personal circumstances.

You can find out if a financial adviser or firm is authorised on the FCA website.

Do your own research

If you see a financial product being promoted by a social media influencer, look beyond these platforms for reviews and comments.

Be wary of high-risk investments

If you’re being encouraged to invest in high-risk financial products like cryptocurrencies or forex trading, don’t rush into anything.

Even if your favourite social media star is recommending them and promising quick returns, as you might lose lots of money if they go wrong.

Check out our guide on getting financial advice to find out more.