As a personal finance author and advocate, I do my best to create useful content based on unbiased information. I’m able to do this because I don’t take compensation to promote products and services offered by others so I’m free to “tell it like it is.” A benefit of being financially independent.
A financial services company or advisor that advertises or sells specific investments or brands, may have an inherent bias and conflict of interest. In other words, if an advisor is compensated to push specific products or services, then they are biased. This doesn’t necessarily mean you are getting ‘bad’ advice, but you may not be getting the ‘best’ options.
When it comes to media sources, even financial media, there are different degrees of bias. If you are interested in expanding your media literacy by learning more about news and information biases and how to ensure you’re getting the most impartial information, then please read on.
What is biased information?
Biased news sources present information in a way that favors a particular viewpoint. They might do this through selection bias, confirmation bias, or wording bias.
- Selection bias: This happens when the information is collected in a way that favors a particular point of view. For example, a survey that only asks people who already agree with a certain position.
- Confirmation bias: This is when people tend to focus on information that confirms their existing beliefs and ignore information that contradicts them. News outlets that primarily cater to a specific political ideology might be an example of this. Social media feeds into our confirmation bias. People naturally tend to seek out information that confirms their existing beliefs. Social media makes it easy to find groups and pages that cater to specific viewpoints, further amplifying this effect.
- Wording bias: The way information is phrased can influence how people interpret it. For instance, using emotionally charged language to describe one side of an issue but not the other.
Here are some tips for helping you spot biased information:
- Look for the source: Who created the information? Are they a credible source? Are they affiliated with a particular cause or organization?
- Consider the purpose: What is the goal of the information? Is it to inform, persuade, or entertain?
- Check for evidence: Is the information supported by facts and data?
- Be aware of your own biases: We all have biases, so it’s important to be critical of the information you consume and to try to see things from different perspectives.
What are the best sources of unbiased news?
As shown in the Chart 1 below, there are multiple approaches to determining the relative “bias-ness” of information. These include:
- Non-profit fact-checking organizations
- News aggregators with diverse sources
- Established news sources with high reporting standards
- Media bias ratings
Chart 1
Unlike many of the sources they rate, Media Bias Rating organizations are relatively new. Media bias ratings can be a useful tool, but it’s important to be aware of their limitations:
- Methodology: These organizations use different criteria to assess bias, and some rely on subjective analysis alongside objective factors. This can lead to varying results depending on the organization.
- Transparency: Some organizations might not be transparent about their funding or potential biases of their own.
- Focus on Political Bias: Many ratings focus on political leanings, while other forms of bias, like sensationalism or omission of facts, might not be given enough weight.
When it comes to financial news and information, I’ve compiled a list of reputable sources in Chart 2. I frequently reference these sources when developing my content.
Chart 2
Remember to critically evaluate the information provided by any source and consider seeking advice from multiple sources before making significant financial decisions. Additionally, consulting with an independent financial advisor can provide personalized guidance tailored to your specific financial situation and goals.
When reading financial news, here are some tips for keeping bias in mind:
- Look for multiple perspectives: Don’t just rely on one source for your financial news. Try to get a well-rounded view by reading from a variety of publications with different perspectives.
- Be aware of the source’s agenda: Consider who owns the news outlet and what their potential biases might be. For example, a financial news source owned by a large investment bank might be more likely to promote a bullish view of the market.
- Pay attention to the language: Be wary of articles that use sensational language or make sweeping generalizations. Reputable financial news sources will focus on providing factual information and avoid making predictions.
- Do your own research: Don’t take everything you read at face value. If you see a financial news story that seems too good to be true, it probably is. Do your own research to verify the information before making any investment decisions.
Remember, there’s no single source you can rely on to be completely unbiased. It’s important to be a critical consumer of news and get your information from a variety of reputable sources with different perspectives. By being aware of bias, you can become a more informed consumer of information.