From loud budgeting to girl math, here’s what you should know before taking financial advice from TikTok (2024)

Between girl math, loud budgeting and cash stuffing, the trendiest financial advice is increasingly born on TikTok.

That has helped financial TikTok, also known asFinTok, take off.

Now it's one of the most popular sources for financial information, tips and advice, particularly amongGeneration Z. The hashtag#FinTok, representing just the financial TikTok community, has more than 4.7 billion views on the platform.

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In fact, Gen Zers are nearly five times more likely to say they get financial advice — including stock tips — from social media than adults in their 40s or older, according to a report.

Young investors, especially those ages 18 to 25, look to so-called "finfluencers" for money-saving, or money-making, wisdom, other research also shows.

With less access to professional advisors and a preference for obtaining information online, Gen Zers are more likely than any other generation to engage with finfluencer content on TikTok, YouTube and Instagram, according to a recent report by the CFA Institute.

Finfluencers appeal to Gen Z investors because they produce educational and engaging content that is instantly accessible and, even better, free, the report found.

"Finfluencers now play an increasingly significant role in educating young people about finance," said Rhodri Preece, a certified financial advisor and senior head of research at the CFA Institute.

"However, our research shows that finfluencer content often lacks sufficient disclosures, which can hinder the ability of consumers to evaluate the objectivity of the information, and some investors may be unaware when and how finfluencers are being paid to promote financial products," he added.

The downside of FinTok

In fact, only 20% of the finfluencer content that contained investment recommendations included any form of disclosure, the CFA Institute found. Regulators typically require financial services professionals to disclose any conflicts of interest or financial incentives with their recommendations, including whether they are being compensated as a result.

Like all things on social media,not all of the "expert" advice you see is necessarily true, or unbiased.

While there are ways to vet traditional financial advisors, it's much harder to find out the intentions or possible conflicts of interest of someone giving advice online.

Until there is more oversight, the CFA Institute advises consumers to look into a finfluencer's qualifications as well as potential financial motivations, and cross-check any information offered online.

To verify a certified financial planner's background, go to the CFP Board's website. Brokers and brokerage firms can be looked up on theFinancial Industry Regulatory Authority website and investment advisors can be checked out on theU.S. Securities and Exchange Commission's website.

For other professional designations, go to theFINRA pagethat lists them, which includes links to the designation organizations.

The upside of FinTok

Aside from investment or tax advice, FinTok can be incredibly helpful when it comes to tackling challenging financial topics from paying down debt to compound interest and saving for long-term goals, other experts say.

"The average American didn't learn the basic tools in school or from their parents," noted MichaelHershfield, founder and CEOof Accrue Savings. "That information is power," he said.

For example, TikTok's latest "loud budgeting" trend aims to encourage consumers to consciously stop overspending and recognize their economic limitations. That type of financial education is key at a time when most Americans say they are livingpaycheck to paycheck.

"Social media is a cancer but there's good that can come from it," Hershfield added.

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From loud budgeting to girl math, here’s what you should know before taking financial advice from TikTok (2024)


What are the finance trends for Gen Z? ›

A Forbes Advisor survey of more than 1,000 millennials and Gen Zers in January 2023 pointed to these top five topics: investing in stocks and bonds (57%), personal budgeting (51%), passive income (49%), reducing debt (40%) and building or improving credit (37%).

What is FinTok? ›

Between girl math, loud budgeting and cash stuffing, the trendiest financial advice is increasingly born on TikTok. That has helped financial TikTok, also known as FinTok, take off. Now it's one of the most popular sources for financial information, tips and advice, particularly among Generation Z.

What is the meaning of finfluencer? ›

finfluencer (plural finfluencers) (informal, social media, marketing, neologism) An influencer who gives advice on financial investments.

Is Gen Z struggling financially? ›

Young members of Gen Z are struggling more financially today than Millennials did at their age 10 years ago, according to a new study published last week by the credit reporting agency TransUnion.

Is Gen Z financially stable? ›

Additionally, 53% of Gen Zers say higher costs are a barrier to their financial success, a separate survey from Bank of America found. And 73% of Gen Z respondents said today's economy makes them hesitant to set up long-term financial goals, according to a recent Prosperity Index study by Intuit.

How many people get financial advice from social media? ›

It's no secret that the younger generation of consumers is increasingly turning to social media to learn about their own personal finances. A 2023 retail investor survey by robo-advisor Betterment found that more than half of Gen Z (65%) and millennials (55%) get advice from social media.

What is loud budgeting? ›

It means saying “no” to expensive dinners that aren't in your budget. But it also means enthusiastically saying “yes” to the things that are. “Loud budgeting” was declared the next trend of 2024 by comedian and writer Lukas Battle, in a somewhat tongue-in-cheek video posted in December, which now has 1.5 million views.

Why are there so many financial influencers? ›

The most popular investing social media mavens have amassed millions of followers and are earning millions of dollars from advertisem*nts, sponsorships, book sales, and membership and consulting fees. Many are succeeding for good reason: They provide sound advice in entertaining ways.

What is an example of a Finfluencer? ›

For example, the finfluencer Mrs Dow Jones has founded FINANCE IS COOL UNIVERSITY, an educational platform for financial literacy. Because so many retail investors turn to social media to learn about the stock market, improving the quality of their engagement will only become more important.

What are the financial characteristics of Gen Z? ›

Gen Z witnessed the Great Recession firsthand, fostering a sense of financial caution and a distrust of traditional financial institutions. They are actively seeking financial literacy resources and turning to alternative financial technology (fintech) companies that cater to their digital-first approach.

What do Gen Z spend the most money on? ›

What do Gen Z spend money on?
Type of spendingPercentage
Household bills and expenses52.34%
Clothes and accessories44.07%
Going out/entertainment37.49%
Food delivery/eating out36.99%
10 more rows

Are Gen Z more financially literate? ›

The low proficiency in financial literacy among Gen Z, as evidenced by only 24% of respondents being able to answer basic financial questions correctly in the FINRA survey, points to an urgent need for comprehensive financial education efforts aimed at young people.

What are Gen Z buying the most? ›

5 Things Gen Z Will Spend Money On. According to the 2023 Consumer Culture Report by 5WPR, Gen Z will “splurge” in three areas: electronics, health and wellness, and clothing and fashion. With some additional research, we also found that Gen Z pays special attention to small businesses and education.


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