Navigating the World of Financial Advice on Social Media: A Wise Approach

social media influencer giving financial advice

In an age where social media platforms like TikTok, X (formerly Twitter), and Instagram have become hubs of information on virtually every topic, financial advice is no exception. Under the hashtag FinTok on TikTok, influencers are reshaping how we think about money management, from investment strategies to saving tips. But should you be taking financial advice from these social media gurus?

The Rise of FinTok

TikTok, known for its short, engaging videos, has emerged as a surprising source of financial wisdom. Influencers, often young and relatable, share their personal experiences and insights. They cover a range of topics from credit card rewards to investment in cryptocurrencies, all in under a minute. This format appeals especially to Gen Z, with a survey by WallStreetZen revealing that three-quarters of this generation learn about personal finance from social media.

The Good Side of FinTok

Many FinTok creators focus on basic financial literacy. Their videos offer practical advice on budgeting, saving, and understanding financial fundamentals. This is particularly valuable considering that, according to a survey by the National Endowment for Financial Education, only a small percentage of adults received financial education in high school or college. For those new to managing their finances, these tips can be a great starting point.

The Risks and Downsides

However, there is a flip side. Some FinTok content veers into more complex areas like investments, insurance, and taxes, where professional advice might be more prudent. The lack of regulation in this space means that anyone can post financial advice, regardless of their credentials or understanding of an individual’s financial situation.

Influencers vs. Certified Financial Planners

Certified financial planners undergo rigorous training and are akin to accountants and lawyers in their expertise. In contrast, many social media influencers may not have more than anecdotal experience. This disparity raises the question: should you trust your financial future to someone whose main qualification is their social media following?

Success Stories and Personal Journeys

Despite this, there are success stories. Michela Allocca, known as @BreakYourBudget on TikTok, turned her journey of amassing $100,000 in savings by age 25 into a platform for sharing financial advice. Yet, even she treads carefully when it comes to investment advice, recognizing the limits of her expertise.

The Blurred Lines of Financial Advice

The challenge with FinTok is the blurring of lines between financial coaching and specific financial advice. While general advice on budgeting and saving is usually harmless, specific investment recommendations can be risky and should be approached with caution.

The Personal Nature of Finance

Finance is deeply personal and varies greatly from one individual to another. What works for one person might not be suitable for another. This is where the one-size-fits-all approach of social media falls short compared to personalized advice from a financial planner.

Free Advice with Hidden Costs

One of the appeals of FinTok is that the advice is free. But it’s crucial to remember that free advice can sometimes come with hidden costs, especially if it leads you to make uninformed financial decisions.

How to Navigate FinTok Wisely

  1. Consider the Source: Check the credentials and background of the influencer. Are they sharing personal experiences, or do they have formal financial education?
  2. Be Wary of Specific Investment Advice: General tips on saving and budgeting can be helpful, but be cautious of specific investment recommendations.
  3. Understand Your Personal Financial Situation: Recognize that financial advice should be tailored to your unique circumstances.
  4. Seek Professional Guidance When Needed: For complex financial decisions, consider consulting a certified financial planner.
  5. Stay Informed: Continuously educate yourself about financial matters. The more you know, the better you can discern good advice from bad.


Social media platforms like TikTok can be valuable resources for financial information, especially for those just starting to navigate the world of personal finance. However, it’s crucial to approach this advice with a critical mind and understand the limitations of what can be conveyed in a short video. Remember, when it comes to your finances, there’s no substitute for personalized, professional advice.



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