In the US, there isn’t a nationwide requirement for financial literacy education, leaving many people without basic knowledge on saving, budgeting, and smart spending. To bridge this gap, Americans often turn to the internet for financial advice, but not all sources are equally reliable. TikTok, for instance, has become a popular platform for personal finance tips.
A significant 80% of Americans aged 18 to 41 get financial advice from social media, with many TikTok content creators amassing millions of views. These videos cover a range of topics, from finding a beginner credit card to resolving money-related conflicts.
While TikTok is a convenient way to learn about financial topics, it’s not the first platform to offer relatable financial content; blogs were popular for this back in the early 2010s. Americans often look to each other for information, which is a good starting point for personal finance but shouldn’t be the only source.
TikTok can introduce people to new financial concepts, but many topics are too complex to be covered in just 60 seconds. Social media tends to prioritize engaging content over accurate information, so some advice on TikTok might be misleading or incorrect.
Not all TikTokers intend to mislead, but their advice may not suit your unique financial situation. What’s best for one person might not be best for another, given different financial goals, risk tolerances, and lifestyles.
Therefore, while TikTok can be a helpful resource, it’s essential to do your own research or consult a professional before making any significant financial decisions.
This information is general and should not be considered as a recommendation or solicitation of any products from SoFi or its affiliates. It’s not meant to provide investment or financial advice or serve as the basis for any investment decisions. Remember, investing involves risk, and past performance doesn’t guarantee future results. Always consider your specific financial needs, goals, and risk profile before making investment decisions.
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