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. The hashtag #FinTok, representing just the financial TikTok community, has more than 4.7 billion views on the platform.
More from Personal Finance:
Gen Z says they have it harder than their parents did
3 ways Gen Zers can build credit
Why can’t today’s young adults leave the nest?
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 CreditCards.com 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
Until there is more oversight, the CFA Institute advises consumers to look into a finfluencer’s qualifications as well as…
Read the full article here
