Tapping into TikTok: Can Social Media Actually Teach Gen Z about Finance?

The social media platform TikTok has become quite popular for Gen Z users seeking personal finance advice. Videos on topics like saving, budgeting and investing have drawn in many young viewers. However, professionals are concerned not all of this content provides an accurate portrayal.

Personal finance expert Carol Glynn notes that while reputable creators discuss valuable lessons, the short video format risks oversimplifying complex issues. This could lead younger, inexperienced audiences to make poor financial choices without fully understanding implications.

Glynn warns of an abundance of “get rich quick schemes” that may not be realistic. Figures like Tatiana Londono, Tori Dunlap, Erika Kullberg, and Seth Godwin have amassed millions of followers collectively discussing topics such as real estate, wise spending habits, and more. But not everything shared should be taken at face value.

Dubai-based lawyer Antoine Iskander worries about incomplete information, confirmation bias through algorithms, and potential for misinformation or fraud. Relying solely on TikTok is ill-advised when making monetary decisions.

Both experts recommend supplementing social media advice with traditional sources like books and accredited courses. Users must verify claims and think critically rather than believing a single influencer. Only by doing proper research can followers truly understand personal finance concepts and avoid potential pitfalls.

If handled correctly, Glynn notes TikTok could partner with reputable organizations. Features to report misleading content along with fact-checking would help create a safer space. But caution is key – social media should serve only as a starting point, not sole guide, for Gen Z navigating personal finances.