Opinion: TikTok is a Swamp of Bad Financial Advice, and Experts Are Fighting Back
The rise of social media has made financial education easily accessible to the masses. However, it has also created a breeding ground for bad financial advice, especially on TikTok. Financial experts like Dr. Brad Klontz and Jessica Moorhouse have taken it upon themselves to debunk financial myths and share credible information through their TikTok accounts, blogs, podcasts, and YouTube channels.
The surge of interest in stocks and cryptocurrencies among young people is a cause for concern for financial advisors. Young people are willing to take on more risk and believe that they can time the market and get rich quick. The GameStop frenzy in early 2021 is an example of how social media can create irrational stock-buying frenzies. The average TikTok user finds it hard to discern trustworthy advice among clout-chasers.
The experts have a lot to share, but they have to make it more interesting and digestible. They have to compete with the clickbaity content that is more appealing to the average TikTok user. Klontz uses entertaining, short, and punchy videos to explain personal finance and psychology. Moorhouse’s financial journey story helps others in their financial journey.
It’s important to have financial education accessible through social media, but it’s equally important to have credible sources sharing it. Educating the public on financial matters helps them make informed decisions about their finances and avoid scams and loss.
– Financial TikTok (#PersonalFinance) has generated over eight billion views.
– 45% of Americans reported becoming more interested in investing after the GameStop frenzy.
– 18-24 year-olds are more willing to take on more risk with their investments.
– Social media can create irrational stock-buying frenzies and misinformation.
In conclusion, TikTok is a swamp of bad financial advice, but financial experts are fighting back. The struggle to compete with clout-chasers and clickbait content still exists, but these experts are making good progress in their efforts to debunk financial myths and share credible personal finance information. It’s essential to have reliable financial education accessible through social media to help young people make informed decisions about their finances and avoid scams and loss.