Many of us love using TikTok, but should we invest on the basis of a TikTok video? Let’s check out the pros and cons of taking financial advice from TikTok.
TikTok, the social media app favoured by Gen Z, has a hidden side. Under the right hashtags, you can unlock financial facts for free.
But is it safe to involve the app in important financial decisions? Unfortunately, the answer may not be a simple yes or no, which is why you should compare the pros and cons of following #moneytok for your financial education.
Here are some of the suitable reasons why you might consider exploring #moneytok:
Pro #1: Accessibility
Historically, financial education has been locked behind a closely guarded door. Only those with privilege could open it, using their money to speak with a financial advisor or go to school for finances.
TikTok flips the script on history, making complicated financial topics accessible to people usually locked out of these conversations, including women, BIPOC, and the underserved.
If you have a phone with access to data or Wi-Fi, you can watch these videos any time, anywhere you like.
Technically, you don’t even need that bit of hardware. You can find TikTok compilations on YouTube, which you can watch from a public computer at your local library.
Pro #2: Privacy
It can be hard to open up to loved ones in person about paying bills late, using direct lender payday loans, or struggling to save money. You don’t want to worry them, or maybe you don’t want them to think less of you when you ask for help.
The anonymity of TikTok takes some of the pressure off IRL conversations about money. From the safety of your screen, you can learn how to save, get a cash advance online, and invest wisely without any of the shame.
Pro #3: Community
It’s easy to think you’re the only person who doesn’t understand what happened with GameStop or that you’re the only one stuck taking out direct lender payday loans.
The viewer count shows you’re wrong. There’s an audience behind #moneytok, with millions of people watching the same content as you. And in a world of rolling lockdowns and increased social distance, it can be reassuring to see that you’re not alone.
Using TikTok as your private financial advisor has some drawbacks. Let’s check them out:
Con #1: Brevity
TikTok videos only last 60 seconds, so they aren’t the ideal platform for complex financial topics. For example, even the fastest-talking advisor would be hard-pressed to condense trickle-down theory in a single minute.
Con #2: Risk of Misinformation
Many self-taught entrepreneurs can give solid advice, but there’s a chance you’re watching someone bluff their way through videos. Anyone with a phone can create an account and claim to be a financial guru.
Sometimes, TikTok personalities share bad takes by accident, but others might spread risky financial techniques as clickbait to gain more followers and views.
While there’s genuine advice available for free on the app, it’s also a minefield of get-rich-quick schemes and bad investment tips. You could get into trouble if you don’t supplement your TikTok education with other sources.
Should You Take Financial Advice From TikTok?
As Zoomers grow up with TikTok on their phones, the app’s content is maturing alongside them. Financial literacy videos are now joining the comedy trends and dance challenges that catapulted the social media app to fame.
To make sure they’re helping you grow into your financial intelligence, make sure to consider its cons as carefully as its pros.
You may also be interested in checking out:
- How to Upload DSLR Videos on TikTok (Step by Step Guide)
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- How to Download TikTok Videos on Android and iOS Devices