Don't Take Financial Advice From a TikToker if They Do Any of These 5 Things

Search "FinTok" on the popular social media site TikTok and you'll find over 101,000 results from influencers all over the world who claim to teach you the secrets of managing money and growing your wealth in bite-size video segments. It's quickly become one of the most popular sources of financial advice, especially among Gen Z.

But the old adage "Don't believe everything you hear" rings true here. If the TikToker you're following does any of the following five things, you may not want to rely upon them for financial advice.

1. Making unrealistic promises or guarantees

Some TikTokers try to draw in views by promising that they can grow your wealth quickly or guarantee you a certain amount of money. But be wary of these claims. Everyone's financial situation is different, and guarantees are hard to come by, especially when you're talking about investing.

Remember, TikTokers earn money through ad revenue, so a higher view count means a bigger payday for them. And "This Investment Will Guarantee You $1 Million by 2025" is a much catchier headline than "This Investment Could Help You Grow Your Wealth Slowly But Steadily Over 30 Years." But that doesn't mean what they're saying is true.

2. Heavily pushing specific products

Some TikTokers swear by a specific product, whether it's a credit card, a bank account, or a budgeting app. It's possible that some of them actually use the product and really like it. But if they find a way to bring it up in nearly every video or fail to mention any other competing products, you should be careful.

It's possible that the TikToker is being paid to endorse this product. They might be required to mention it a certain number of times or talk up certain features as part of their deal. It's not always easy to know if this is the case for a specific TikToker as they may not always disclose their endorsement deals. But if you even think it's a possibility, it's best to research competing products on your own rather than taking the TikToker's word.

3. Fearmongering

Fearmongering is not exclusive to TikTok or financial influencers, but it can be especially dangerous here. It's a technique often used to create a sense of urgency to get people to take a certain action. This could be watching another video to learn how to solve a problem or buying a certain product.

Making hasty decisions is rarely helpful when managing your money, so it's worth taking a step back if you feel your blood pressure rising while listening to a FinTok influencer. Get a second opinion -- preferably from someone with a financial background -- before making any moves.

4. Relying heavily on personal anecdotes

Many TikTok money experts lack relevant degrees or credentials, so they draw instead upon personal experience -- their own and others. Some have actually accomplished really impressive things, like paying off tens of thousands of dollars in credit card debt. But that doesn't make them an expert in all things personal finance.

It doesn't even mean their strategy will work for everyone. For example, a TikToker may have paid off their credit card debt by reducing their spending and transferring their balance to a credit card with a 0% intro APR. But that might not be an option for someone living paycheck to paycheck with a poor credit score.

5. Overgeneralizing

The most helpful financial advice is often nuanced and takes into account the individual's personal situation. But you won't find a lot of that on TikTok. For one, as discussed above, few TikTokers lack any real background in finance and may not have the knowledge to provide that sort of advice.

TikTok also doesn't lend itself to that sort of personalized information. The goal is to get a lot of people to watch your videos, and that's easier to do when focusing on broader topics. This doesn't mean all general financial advice on TikTok is bad. It just means that it might not be adequate on its own. Diving deeper and getting more personalized advice can lead to better outcomes.

TikTok can be a great starting point for learning about personal finance and investing, but be aware of its limitations. Educate yourself using a variety of sources before making any major moves with your money.