- August 2024
- Alfredo Martinez
TikTok has become a go-to platform for many seeking entertainment, trends, and advice on a wide range of topics. Among these, financial advice has gained substantial traction, particularly within the community known as #FinTok. Self-proclaimed "Finfluencers" share tips on investments, budgeting, and more, often with catchy, engaging content that appeals to a younger audience.
While it might seem convenient to get your financial guidance from these short, snappy videos, there may be significant risks involved and we want to ensure you are able to make the most informed decisions for your financial wellness. Many of these influencers lack formal qualifications or real-world experience, and their advice can lead to poor financial decisions and even substantial losses. Here is why you should be cautious about taking financial advice from TikTok and where you can find more reliable sources of information.
While it might seem convenient to get your financial guidance from these short, snappy videos, there may be significant risks involved and we want to ensure you are able to make the most informed decisions for your financial wellness. Many of these influencers lack formal qualifications or real-world experience, and their advice can lead to poor financial decisions and even substantial losses. Here is why you should be cautious about taking financial advice from TikTok and where you can find more reliable sources of information.
The Problem with FinTok
While FinTok's popularity is understandable, there are significant risks:
Lack of Credentials: Many Finfluencers lack formal qualifications or experience in finance. They can easily gain followers with slick videos, but their advice often lacks depth and accuracy.
Risky Advice: Finfluencers sometimes promote high-risk financial strategies without adequate warnings about potential downsides or their personal interests in what they are discussing.
Lack of Credentials: Many Finfluencers lack formal qualifications or experience in finance. They can easily gain followers with slick videos, but their advice often lacks depth and accuracy.
Risky Advice: Finfluencers sometimes promote high-risk financial strategies without adequate warnings about potential downsides or their personal interests in what they are discussing.
How to Spot Reliable Financial Advice
It's crucial to verify the credentials and experience of any financial influencer you follow.
Look up their qualifications and experience on professional networks like LinkedIn and see what certifications they have earned. Reliable influencers respond to follower questions, provide spontaneous advice, and offer balanced views. Be cautious of those pushing get-rich-quick schemes or high-risk investments.
Ask questions. These questions are important because real professionals should have no problem answering them.
Look up their qualifications and experience on professional networks like LinkedIn and see what certifications they have earned. Reliable influencers respond to follower questions, provide spontaneous advice, and offer balanced views. Be cautious of those pushing get-rich-quick schemes or high-risk investments.
Ask questions. These questions are important because real professionals should have no problem answering them.
What experience do you have, such as your work history?
What are your qualifications to practice financial planning, such as education, formal training, licenses, and credentials?
Am I permitted a no-cost, initial consultation, and how much time is allowed?
How much do you charge, what is your fee structure, how are you personally compensated, and if you get commissions, how are they earned and from whom?
Better Sources for Financial Advice
For more reliable financial guidance, consider:
Visiting the Premier America TikTok Account
The Premier America account is a reliable source of financial wellness tips tailored to your needs. Our content is crafted by experts who understand the financial landscape, ensuring that every tip is practical, relevant, and actionable. Whether you are looking to budget better, save smarter, or learn more about financial literacy, our engaging and informative videos are designed to empower you with the knowledge you need to achieve your financial goals.
Visit the Premier America Financial Wellness Center
At Premier America we offer financial guidance through our Financial Wellness Center and in person at our branches with individualized financial counseling.
Attend a Premier America Webinar or Seminar
We also host various webinars and seminars that are free to attend for anyone.
Find a Book that helps support your goals:
Here are a few books recommended by our Financial Inclusion & Education Officer, Alfredo Martinez:
- Mind over Money by Brad and Ted Klontz
- Surviving Debt by the National Consumer Law Center
- Personal Finance by Thomas Garman and Raymond Forgue
Visit Trusted Financial News Outlets and Regulators
High-quality reporting and advice from consumer advocates are invaluable when reviewing your financial decisions.
Government Resources
Rliable information from government websites, such as the Consumer Financial Protection Bureau and California's Department of Financial Protection and Innovation, can provide additional support and guidance.
While TikTok is entertaining, it's not always the best source for financial advice. For sound financial decisions, seek out reputable and verified sources, continue educating yourself, and always fact-check the information you receive. This approach will help you build a secure financial future.
While TikTok is entertaining, it's not always the best source for financial advice. For sound financial decisions, seek out reputable and verified sources, continue educating yourself, and always fact-check the information you receive. This approach will help you build a secure financial future.