27% of adults have taken bad money advice from TikTok

27% of adults have taken bad money advice from TikTok


TikTok's legal showdown begins: Here's what's at stake

From putting your toddler children on your payroll to claiming your car as a business expense, TikTok is chock-full of potentially bad money advice.

Yet, financial TikTok, also known as #FinTok, is one of the most popular sources for financial information and tips, particularly among Generation Z.

Now, 27% of social media users say they have fallen for financial advice or information on social media that turned out to be false or misleading, according to a new report by Edelman Financial Engines.

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Roughly 20% have even fallen for such misleading content multiple times, the report found. Edelman Financial Engines polled more than 3,000 adults over 30 from June to July.

“It’s hard to discern what’s good advice from what’s not good advice,” said Jean Chatzky, personal finance expert and CEO of HerMoney.com, who worked with Edelman Financial Engines on the report. However, “if it sounds amazing, it’s probably too amazing.”

Heavy social media users, likely younger Americans, may be particularly susceptible to believing inaccurate financial information found there, according to Edelman Financial Engines.

Gen Zers may be more likely to get duped

With less access to professional financial 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 January report by the CFA Institute.

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

In some cases, having such an accessible source for money-related subjects can help, particularly if it encourages better budgeting or savings habits, said Isabel Barrow, the director of financial planning at Edelman Financial Engines.

However, “you have to take everything that you hear and see and read on social media with many grains of salt,” Barrow said, especially when it comes to topics such as how to avoid or limit taxes.

“It may be good advice for someone but it is not a one-size-fits-all thing.”

‘Do your own vetting’





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About the Author: Tony Ramos

Tony Ramos is a seasoned expert in business funding and real estate investment, with a remarkable journey spanning over 20 years. His expertise in flipping properties and implementing the buy-and-hold strategy has positioned him well in the real estate investment sector. Tony's profound understanding of financial strategies extends to teaching individuals and businesses how to become debt-free and leverage the power of LLCs for funding. For insights, mentorship, or collaboration opportunities, Tony can be reached at businessfundingnopg@gmail.com. Connect with him to unlock the potential of smart financial strategies and embark on a path to financial success and freedom.

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