Financial literacy in the age of 'finfluencers'

A 20-second video tells you where to invest your savings. It looks confident, polished, maybe even backed by ‘data’. Millions watch it. Some follow and trust it. Some lose money.

This is no longer an exception. It is becoming part of everyday life. At a time when we are increasingly aware of the risks of social media, from cyberbullying to misinformation, financial vulnerability in the digital space remains largely overlooked.

We tell people to take responsibility for their financial future. At the same time, they are increasingly exposed to a digital environment that is fast-moving, persuasive, and often unclear. The result is a growing gap between the decisions people are expected to make and the tools they have to make them.

Financial vulnerability is not a marginal issue. Across the European Union, only one in five citizens has a high level of financial literacy. This means that most Europeans are navigating savings, credit, and investment decisions without fully understanding the risks involved.

At the same time, exposure to hidden advertising, misinformation, and increasingly sophisticated fraud, often powered by artificial intelligence and deepfakes, is growing rapidly. The result is simple—people have less control, are more exposed, and are therefore more at risk of falling into traps.

This is why, in the European Parliament, the EPP Group has seen the importance of putting forward a report on financial literacy and the role of so-called ‘finfluencers’ within the framework of the Savings and Investment Union. The goal is to build a European response that is ambitious, practical, and measurable, focused on the real decisions and challenges people face in their daily lives.

Financial literacy is neither a luxury nor a niche topic for specialists. It is about freedom and security. When people cannot compare costs, understand risks, distinguish reliable information from disguised marketing, or recognise online fraud, their autonomy is weakened.

And this vulnerability does not exist alone. It is amplified by the way financial information is now consumed.

Today, we are rightly concerned about fake news in politics and increasingly focused on digital and media skills; financial literacy must be treated with the same urgency. Financial decisions, whether about savings, pensions, or investments, have consequences that are just as real.

This is the objective of the report approved a few weeks ago. It responds to how people encounter financial information today and how that is changing.

First, financial education must be treated as a life skill. It should start early, but it cannot stop at school. The most important financial decisions are made later, when entering the labour market, taking out a loan, buying a home, or planning for retirement. Learning must therefore follow people throughout their lives, supported by schools, workplaces, and EU-wide initiatives.

Second, education alone is not enough; we must also protect and simplify. Too often, financial rules designed to increase transparency end up producing complexity that ordinary people cannot navigate. Financial literacy cannot replace investor protection. If we want more Europeans to save better and invest safely, we must ensure that the system itself is understandable to everyone.

The third challenge, and perhaps the most urgent, is the digital environment and the finfluencers. Social media has become the entry point to financial information, especially for younger generations. This creates opportunities for inclusion, but also serious risks.

While one content creator may explain basic financial concepts clearly, another may promote high-risk products without disclosing commercial interests. This distinction is not always visible to the viewer, and the line between education and advertising is often blurred.

But we should be clear: the goal is not to silence creators or restrict innovation. It is to raise standards. That means clear labelling of paid content, honest and visible risk warnings, stronger enforcement against scams, and better cooperation with online platforms. It also means recognising that platforms themselves cannot remain neutral conduits when financial harm is at stake.

The online world must be a place where people are informed and protected, not misled or exploited. Financial content is not just another category of online entertainment. It influences real decisions, with real consequences.

If we get this wrong, no amount of education will be enough. And if we ignore the digital environment, no amount of regulation will hold.