Should I Get My Financial Advice From FinTok?

What is FinTok?

FinTok is a subcommunity within the popular social media platform, TikTok, with topics ranging from cryptocurrencies, investment advice, and investment jokes to budgeting, taxes, and debt repayment strategies. Popular hashtags like #stocktok and #PersonalFinance have seen billions of views each.

Millennials and Generation Z turn to FinTok and Social Media for Financial Advice

Arguments can be made regarding the suitability for some financial information shared on FinTok and other social media sites, but where it is succeeding is in reaching a younger audience in a way that helps millennials and generation Z feel more comfortable talking about money, a historically taboo topic of conversation. Also, FinTok, Instagram, and other financial subcommunities of social media sites are sometimes the first exposure to money education for generation Z and millennials.

According to a recent Forbes Advisor survey, 79% of millennials and generation Z individuals (ages 18 to 41) have turned to social media for financial advice. Among the many popular social media sites, Reddit and YouTube come up as the most trusted platforms.

Benefits of Financial Information on Social Media

Forbes found that 76% of millennials and generation Z individuals believe financial content on social media is making it less off-limits to talk about money. The ability to communicate about financial stressors or situations can be vital to a long-lasting partnership. According to another Forbes survey, 37% of divorces are due to financial problems. I am not saying that financial problems in a marriage can always be solved through communication, but I imagine an increased willingness to discuss money when financial problems arise does not hurt.

Forbes also found that historically marginalized groups felt a boon from the increased availability of financial advice. Specifically, 72% of Black respondents reported their race would have historically been a barrier to obtain financial advice, 65% of women feel the same about gender, and 57% of people earning less than $35,000 per year feel the same about their economic status. Again, while this is not a guaranteed solution, easy access to financial education can help reduce the inequality of access to financial information across race, gender, and economic status.

It is important to remember that not everything you read on the internet is accurate or applicable to you (yes, even on TikTok) and I recommend digging a little deeper into your favorite financial influencers to see what credentials they have to give this advice. That being said, it appears that there are many important benefits to the wave of financial education across social media platforms, and I believe it is moving this generation in the right direction by getting the conversation started.

1. https://www.forbes.com/advisor/investing/financial-advisor/adults-financial-advice-social-media/
2. https://www.forbes.com/advisor/legal/divorce/divorce-statistics/