A hot new place for personal financial tips?Ticktaku

TikTok, the most well-known Chinese-owned social media app for young users and viral dance videos, is rapidly emerging as a forum for various types of movements. What to do with money

A search for #personalfinance reveals that the video associated with the hashtag has been viewed 4.3 billion times and the content of #personalfinancetips has been viewed 33 million times. The surge in money talks on TikTok, which has about a billion monthly users, shows a growing audience eager to help with how they handle their money.

Ask Tori Dunlap, a money and career coach well known in the app as @ herfirst100k. Focusing on helping women control their economic lives, Dunlap joined TikTok last July and has attracted 1.6 million followers ever since.

“I found that the people at TikTok needed this financial advice. I didn’t think Gen Z would care, but they do a lot. It’s unjudgmental and not embarrassing. I’ll prove it in a way, “she told CBS Money Watch.

26-year-old Dunlap often addresses topics such as why it’s wise to start investing early in life, how to pay off debt, and tips for job interviews. The areas of investment and personal finance may seem puzzling. ”And one of the reasons women are not financially equal and we are left behind is that we are not taught these things. Because. “Woman.”

Nicole Victoria, who runs an @nobudgetbabe account with over 500,000 followers, also wants to empower women in particular to be confident in their finances.

Nicole Victoria, who runs a @nobudgetbabe account on TikTok, helps more than 500,000 followers (mostly young women) manage their finances.

Courtesy of Nicole Victoria

“When it comes to personal finances for women, they are told to stop shopping and spending money at Starbucks, and when it comes to advice for men, they are taught how to invest,” Victoria said. Said. “We want people to know that cost savings are just one part of it, and you don’t have to give up everything you like to move forward financially,” he said.

Having a large number of followers can also open up new revenue streams for the most popular TikTokers.

Nick Meyer, or @nicktalksmoney, is a 25-year-old certified financial planner with over 500,000 followers on TikTok. In addition to his day-to-day work as a tax accountant at a small accounting firm based in Minnesota, he produces educational videos on the money and stock markets.

TikTok pays him a small amount for each video view. This is enough for “food for about two weeks”. But the real money comes from brand partnerships, including collaborations with tax preparation software TurboTax and, a platform that allows members to own a portion of their shares, he said. “They get much bigger as you start to get more followers. Over the last two months, when I reached over 100,000 followers, I got a lot of brand deals. “He said.

Meyer’s TikTok video revenue is comparable to what he currently earns in his daily work. Smoking cessation “will probably be considered in the coming months,” he said.

“Very powerful platform”

Delyanne Barros, a lawyer and money coach by @delyannethemoneycoach, said she wasn’t used to joining the platform to educate young, female, Latino-like individuals and learn about investment from peers. It was. Barros joined TikTok over a year ago and knew she was crazy about something when her followers quickly exceeded 180,000.

Delyanne Barros said her 180,000 TikTok followers appreciate learning about personal finances from someone they can relate to.

Courtesy of Delyanne Barros

“It’s a very powerful platform, and I’ve noticed that people are hungry for this kind of information, especially young Gen Z and Millennials who have never found this information elsewhere. Workplace and family. Suddenly no one was discussing it here in the Tik Tok, “she said.

Barros videos cover a variety of topics, from uncovering a wide range of investment myths to explaining the differences between savings accounts. She is also transparent about how much money she makes and spends.

“I’m teaching new investors how to invest in the stock market. It’s about long-term investments, not meem stocks, day trading, cryptocurrencies. I’m trying to teach people what 401 (k) and IRA are. I have, “said Barros. “Users are hearing about GameStop and AMC, and we’re back on the foundation of long-term investments that may not be popular on TikTok.”

“It distorts what an investment should be”

In fact, some of TikTok’s investment education comes from legitimate and well-meaning creators like Dunlap and Barros. These creators are knowledgeable money coaches or certified financial advisers who want to help them learn the basics of investment and management in their 20s and 30s. Their money.

However, there is a big gap between these types of creators and what critics call inexperienced or unsophisticated TikTokers and unqualified users who share bad financial advice.

Examples include recommendations for investing in individual meme stocks and cryptocurrencies, no matter what investment fundamentals suggest about rising prices and risks. Note the hint that imitating other individuals’ investment strategies also works for you. Nor is there a promise to “get rich soon”.

“It distorts what the investment should be, and some people say,’Why am I going to invest for 20 years when I can make this amount overnight?'” Barros says. It was.

Dunlap recommends a long-term investment, but recognizes that it may be incompatible with the most popular types of content on TikTok.

“The definition of an investment is to put time, sweat, blood and tears into something for a long time. The investment should not be sexy and should be consistently stable over the long term,” Dunlap said. Says.

“No cookie cutter advice”

So how can a beginner in personal finance distinguish between good and bad guidance?

  • Find out who is getting the advice. A quick search on the Internet may give you enough information about an individual to show if he or she is eligible to talk about his or her finances. For example, you may have confirmed credentials such as CFP (for Certified Financial Planners), CPA (for Certified Public Accountants), and RIA (for Registered Investment Advisors). “Ask the source. Investigate this educated person. You need to understand if it can help your life,” said Victoria of @nobudgetebabe.
  • Believe in your intuition. “If someone says you can make a million dollars a week, yeah, that’s not true. If your gut tells you something is wrong with it, that person probably trusts. It shouldn’t be done, “Dan Wrap said.
  • Do not act on the advice of creators who know nothing about your personal finances. “There’s no such thing as cookie cutter advice to help John Doe and Jane Smith,” said New York-based Jeffrey Feynman. “It’s done on a very case-by-case basis and depends on many factors.” Told. Certified accountant and accounting firm DDK & Co. Partner “TikTok is a personal decision and is reluctant to follow advice on TikTok as it depends on many factors such as current earning power, future earning power, whether you are a beneficiary or not” . Trust, age — all of them. ”
  • Don’t expect to learn everything in 60 seconds. Think of the video as an introduction to a topic or concept for further exploration. “I hope you’re more involved in that content.” Okay, cool, I watched the video. I know everything I know now, “Dan Wrap said. ..
  • Ignore users who promote so-called “safe and uninterrupted compound interest accounts” beyond 401 (k) and other traditional savings and investment products. “If you haven’t heard these words before, be suspicious, they’re just other names like life insurance that young people don’t need,” Barros said. Feynman then challenged some of the unfounded claims I heard in TikToks that investing in a 401 (k) is a bad idea: “I think a 401 (k) is a good vehicle.” He said. “It’s always a good idea to make the most of it, like investing in yourself with what you’ve saved with taxes instead of paying taxes. Instead, put it in these other products instead. I disagree with the advice. “

A hot new place for personal financial tips?Ticktaku

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