Should You Take Money Advice From Reddit?

Should you take money advice from a stranger on the internet?

In Reddit’s r/personalfinance channel, anonymous users exchange tips on buying homes, choosing insurance plans, and managing very personal, nuanced money situations.

“It’s like crowdsourcing financial advice,” says Dana Eble, a public relations specialist based in Detroit who regularly browses r/personalfinance.

If you’re not a “Redditor” like Eble, think of the site as an old-school online forum.

The r/personalfinance subreddit is home to 14.6 million members.

Here’s what to consider if you’re one of those millions

How Reddit can motivate and encourage

Being active and intentional with money helps you make the most of it. But for many, money is confusing to manage and uncomfortable to discuss.

Eble says the r/personalfinance subreddit is a positive community with “no shaming.”.

She remembers the post of a distraught and embarrassed 20-something who had accumulated tons of debt and had to file for bankruptcy.

As for the posts and replies, the quality of advice is a “mixed bag,” says Jeff Ledford of Arlington, Virginia.

He frequently browses and replies to r/personalfinance posts and is a certified government financial manager.

Curtis Bailey, a Cincinnati-based CFP, has seen solid advice on the r/personalfinance subreddit when it comes to basics like managing debt and cash flow.

The page may describe a study supporting the advice, show a calculation, or quote an expert or organization

Try other sources of help

If you’re struggling with covering bills or managing debt, these websites may be more helpful than Reddit: 211.org: Get connected with resources and programs designed to help you cover basic needs.

NFCC.org (The National Foundation for Credit Counseling): Find more than a dozen financial calculators and other tools, like a monthly budget planner.

To learn more about personal finance, Bailey recommends taking your reading offline.

Rather than skimming one-off bits of advice, read personal finance books, which Bailey says may help you get “much more nuance and depth of understanding.” (Try “The Geometry of Wealth,” Bailey says.).

You may feel more comfortable with money and better equipped to spot shoddy advice — on Reddit or elsewhere.

This article was written by NerdWallet and was originally published by The Associated Press