Would you accept financial advice from someone in the pub?

When you’re out with friends for a few drinks, it can seem that no topic is off limits. Money, for example. But if someone in the pub is offering financial advice, you shouldn’t feel obliged to take it.

New research from Skipton Building Society shows that nearly one in seven (15%) people have been given financial advice by a stranger at a pub or bar.

And many get advice from friends and go on to take it.

For instance, one in four said they’ve been persuaded to invest in stocks and shares by a friend in the pub.

Meanwhile, one in five said a friend’s suggestion prompted them to invest in crypto.

Many regret taking a mate’s advice

We trust our friends and hope any advice they give is in our best interests.

But lots of people still go on to regret taking it.

In fact, almost a quarter (24%) admitted the worst financial advice they ever had was from a friend, while three-quarters (75%) said the pub was the worst place to get tips on money.

And significantly, nearly one in four (24%) said the advice they’d been given in unusual places, like a pub or on the bus, led to a financial decision they later regretted, such as applying for a credit card (17%) and placing a bet (14%).

“Whilst it can be great to chat about finances informally, making decisions about your money is a big deal,” said Helen McGinty of Skipton.

“So it’s always wise to do your own research and to seek advice from a qualified professional.”

How to protect yourself from bad financial advice

If you want to be sure that you’re getting financial advice from a trusted source, there are several steps you can take.

Check for FCA accreditation

If a person or company is offering financial advice or promoting certain products, find out if they’re properly regulated on the Financial Conduct Authority website.

Do your own research

If someone you trust is promoting a financial product, look for reviews and comments to see if it’s safe and legitimate.

Be cautious about high-risk investments

Don’t rush into high-risk investments that promise quick returns, even if a person you trust is pushing it.

Your friends might care about you deeply, but that doesn’t mean they’re qualified to give financial advice.

So don’t take what they say at face value.

Check out our guide on getting financial advice to find out more about finding a reputable, qualified adviser, so you can be sure you’re making the right choices.