TikTok is a Swamp of Bad Financial Advice, and Experts are Fighting Back
Social media has revolutionized the way people interact with each other and has opened up new opportunities for communication and information sharing. However, with the proliferation of social media platforms, it has become increasingly difficult to differentiate between legitimate advice and clickbait. This problem is particularly evident in financial TikTok, or FinTok, where young people are constantly bombarded with get-rich-quick schemes and myths that can lead to serious financial losses. But experts like Dr. Brad Klontz and Jessica Moorhouse are working to dispel these dangerous money myths and educate young people about personal finance.
Kids are interested, but not educated
According to a survey by the B.C. Securities Commission, 18-24 year-olds are more willing to take on more risk with their investments, which includes being more likely to believe that they can time the market and get a large profit with stock trading. This trend is especially evident on TikTok, which has become a hotbed for day-trading myths and get-rich-quick schemes. The strong stock market of the past few years has led to a surge of young people interested in stocks and making fast profits. This interest has further been fueled by corporate shares that suddenly become popular through online buzz, as evident in the GameStop fiasco in early 2021.
Experts are fighting back
Financial experts like Dr. Brad Klontz and Jessica Moorhouse are using social media as a tool to educate young people about personal finance. Dr. Klontz created his own TikTok account, @drbradklontz, to dispel all those get-rich-quick myths being spread by thousands upon thousands of posts on the app. His posts have helped balance out all that bad advice and provide credible content in front of impressionable young viewers. Jessica Moorhouse has also used social media to educate young people about personal finance. Since launching her blog, she has gone on to add a podcast, an Instagram account, and a YouTube channel, and financial education has become her full-time job.
It’s true that social media can be a breeding ground for bad financial advice, but the fact that there are experts fighting back is encouraging. By using social media as a tool to educate young people about personal finance, these experts are making a difference and helping to change the narrative around investing and wealth creation. It’s up to young people to listen to credible sources and educate themselves before making any big financial decisions.
- Videos tagged with #PersonalFinance have generated over eight billion views on TikTok.
- The B.C. Securities Commission survey revealed that 45% of respondents reported becoming more interested in investing after the GameStop “short squeeze” frenzy.
- Dr. Brad Klontz is the managing principal at Your Mental Wealth Advisors and an associate professor at Nebraska’s Creighton University Heider College of Business.
- Jessica Moorhouse is a millennial money expert and an advocate for financial literacy.
TikTok may be a swamp of bad financial advice, but experts like Dr. Brad Klontz and Jessica Moorhouse are leading the charge to dispel myths and educate young people about personal finance. While it’s up to young people to listen to credible sources and educate themselves before making any big financial decisions, these experts are making a difference by providing credible content and helping to change the narrative around investing and wealth creation.