Can You Trust Financial Advice From TikTok?

Be careful who you listen to on #FinTok.

TikTok has come a long way. Originally full of lip sync videos and memes, it's now one of the most popular apps in the world. You can find content on almost every subject imaginable, including personal finance advice. Some of the "finfluencers" who post these videos have huge followings and make quite a bit of money from their content.

Lots of people, especially those who are part of Generation Z, enjoy learning about money from these bite-sized videos. If you use the app, you might be wondering -- can you trust financial advice from TikTok? The answer is a little more complicated than a simple yes or no.

Getting your financial advice from TikTok has its risks

There are a few issues with TikTok as a financial advice platform. For starters, you need to be very cautious about the accounts you trust. Anyone can create an account and share their advice. They don't need to have any experience, education, or financial background. And if they want, they could always just make that part up. Keep that in mind any time a financial influencer claims to be a multimillionaire.

Being successful on TikTok is all about getting attention, so there are also a lot of sensationalist videos. Earlier this year, there were videos about how cash is going away and Americans would be forced to use a digital currency. Videos with these claims are still up, even though the information is completely false.

That's just one example, and in addition to sensationalist stories, there are all kinds of dangerous money tips shared on TikTok. Some TikTok creators claim they can teach you how to successfully day trade, even though most day traders lose money. Others make real estate investing seem like the easiest thing in the world.

The bottom line is that TikTok has quite a few scammers, influencers who care more about making money than giving useful advice, and people who just plain don't know what they're talking about. Because of this, it's not a good idea to take what you see at face value. Do some additional research on any money tips you find and the user who is sharing them.

It's not all bad

We've gone over the bad, so it's only fair to talk about the good, too. There are TikTok creators who publish excellent financial content and advice. Here are some of the trustworthy ones:

• Ramit Sethi of @ramit.sethi
• Vivian Tu of @yourrichbff
• Humphrey Yang of @humphreytalks
• Tori Dunlap of @herfirst100k
• Seth Godwin of @seth.godwin

You can find interesting and valuable financial information on channels like these, as well as many others. If you find quality accounts to follow, then TikTok can work as a place to learn more about money, how to invest, and other important financial topics.

There is, however, one other drawback of using TikTok for money advice, even with content from reputable creators. Since TikTok videos tend to be on the short side, personal finance content often provides surface-level advice without a lot of details. TikTok has increased its time limits multiple times and now allows videos of up to 10 minutes, but many creators still stick to the 30-to-60-second range.

It's nice to get a useful money tip in a minute or less. But often with personal finance, the details are important, too. They give you a better understanding of that advice and why it works. That's something you normally don't get from TikTok videos.

TikTok has tons of financial advice. Some of it's trustworthy, but a lot of it isn't. There's nothing wrong with learning about money on TikTok if you like the platform, but make sure to do your homework on what you learn. Not only does this help you confirm the advice is legit, but it's also a good way to get more information that wouldn't fit in a quick video.