Influencer Twinkle Jain has emphasized that financial creators should practice self-regulation rather than relying heavily on external oversight from financial authorities. However, if regulation is deemed necessary, those who offer stock tips promising quick profits should be subject to stricter regulations because they are often deceptive, while other financial influencers who promote financial literacy should face more lenient regulations.
During a “Spotlight” episode, Jain remarked, “During my corporate job as a Chartered Accountant (CA), I noticed many friends making financial mistakes, such as overspending, taking unnecessary EMIs, and living beyond their means.” As a CA, I started using entertaining approaches to teach and share simple financial advice on Instagram. Between March and July, my friends often sought advice on topics like tax savings, degree-related queries, and other financial matters.
She emphasized how she used money-saving advice when purchasing her first MacBook, which became her first viral content.
“I created a reel explaining how to manage finances, receive payments, make the most of discounts, and more. This content, focusing on three to four key aspects, garnered significant attention and marked the beginning of my content creation journey,” Jain continued.
She also stressed how important it is for influencers to exercise self-regulation rather than being subject to strict regulations by financial authorities.
Influencers have a significant impact on a large number of followers who rely on them for reliable information. Content creators must take responsibility for the information they disseminate while avoiding false information. There are two distinct types of influencers: those who provide stock tips with promises of quick profits, often using deceptive tactics, and those who educate people about financial matters without endorsing specific stocks. Due to their deceptive nature, the former may warrant regulations, while the latter, who promote financial literacy, may not. Personally, I believe content creators who focus on taxes, personal finance, and educating people about the psychology of money should not be subject to stringent rules,” she continued.
Jain also noted that it can be challenging to strike a balance between being entertaining and informative as a finance creator. It involves the time-consuming process of brainstorming ideas, followed by research and scripting.
Given the short attention spans on platforms like Instagram, it’s crucial to deliver content in an engaging manner. The information needs to be engaging and easy to understand because Instagram users seek entertainment. Simplifying language, especially when discussing complex subjects like tax codes, is important for the audience to grasp the information. However, the thinking, scripting, and execution phases take up a significant part of the process, with a focus on accessibility and engagement, according to Jain.
When asked how the audience can distinguish between reliable and unreliable information disseminated by certain influencers, Jain emphasized that some creators may have recently provided questionable financial advice. In such cases, it is crucial to assess the credibility of the content creator.
Blindly trusting anyone is not advisable. Examining the tools they use and their qualifications is important. For example, it’s essential to consider the experience of an 18 or 17-year-old when seeking advice on tax benefits. Credibility is gained if they possess significant certifications or backgrounds. While independently verifying the author’s information is equally important, critical thinking is also crucial. Verify whether the advice is suitable for your specific situation before implementing it into your life, rather than blindly following it. She asserted that not all advice is equally valid.