TikTok, Gen Z’s financial adviser, can be “risky to rely on,” experts say

Frugal hacks and deal alerts. While this type of content could spur impulse buys, it can help younger folks clog in on deep discounts and major sales.

Promotion of frugality trends and money conversations. One trend is loud budgeting — being vocal about why you’re saving money. Another is going minimalist by way of underconsumption core, and thoughts on the “dupe economy” — affordable alternatives and knock-offs of popular brands. These trends help people embrace frugality and normalize conversations about money that can help others be more well-informed and transparent about their situations.

How-to-use money apps. These are generally simple instructional videos on how to use popular and emerging budgeting apps and fintech tools

Side hustle ideas. These are lists or round-ups of realistic side hustle ideas, but the key word here is “realistic.” Reels like these can inspire you to earn extra cash on the side.

Instead of turning to TikTok as an “end all, be all” of news, Gen Z should use the platform as a jumping-off point, Sergunina said. “They can turn to reliable sources like books, podcasts, personal finance courses or working with certified financial planners to really build their financial knowledge.”

Fernandez has developed a discerning eye on what’s legit or not legit advice on TikTok. She’ll only watch FinTok reels on the topics on which she already has a little bit of knowledge. For example, when setting up a 401(k), Fernandez asked her friends if they felt it was legit. Further, she had previously talked to a certified financial counselor at her university. “I won’t do anything without having already thought of it a little bit,” she said.

Plus, Fernandez will look through a finfluencer’s entire channel to see how trustworthy they are. “I’ll ask questions like, ‘Are they on other platforms? What types of people like their videos?'” she said. “What other videos do they have? Do they have a mission statement? A website?” Fernandez will also look them up to see where they went to college and what degrees they hold.

Striking a balance

While there is quite a bit of misleading information on TikTok, there is also a good amount of helpful content. The key is taking the time to figure out what is solid information and what is iffy.

“The great gift of TikTok on the financial side is exposing people to all of the opportunities and risks out there in the world of finance,” North said. “But it’s not really a good way to decide exactly what to do with your money.”

“That’s because each piece of advice is as good as the person providing the advice,” North added. “You have to be careful that the information you’re following, seeking and consuming is valid and strategically useful or strategically valuable for you.”

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