TikTok has brought us many things, from quarantine olympics to happy, happy dogs to Dadosaur. Now it’s bringing bite size financial literacy to the masses, or at least to those who frequent finance TikTok. But not all finance TikToks are created equally, so here’s our thoughts on what you should learn from financial TikTok and what you absolutely shouldn’t.
Should: Financial jargon and fundamentals!
Stepping into the world of personal finance can be admittedly intimidating. There can be seemingly endless terms, phrases, accounts, etc. to get acquainted with so turning IRA into the new OMG is a go! Try to follow TikTokers that break down the basics and make learning fun and easy.
Should Not: Investing recommendations
Fundamentals of the stock market? Great! Specific recommendations? Not so great… Just because one person made money on one particular stock, bond or fund, doesn’t mean it’s automatically a good investment. So videos pushing one investment strategy don’t help too much. Instead look for TikTokers that help you understand how the stock market works, what makes a good investment, and other tools to make your own informed decisions.
Should: Frugal hacks!
If someone found a frugal hack for something you were already going to do, there’s no reason not to give it a try yourself! Whether it’s a promo code for online shopping, a free alternative to a paid experience, or budget-friendly DIY home upgrade, it’s a win. But remember to resist the temptation to buy more than you need, just because it’s “on sale.”
Should Not: Tax advice
Taxes are highly nuanced and not the place you want to make a mistake! Whether it’s write offs, withholdings, or business filings, taxes are not one size fits all. Because everyone’s tax situation is different, you should default to a tax professional or go directly to the IRS website for answers, not TikTok.
Should: Where to get more financial education!
Yes, TikTok can make financial education quick and easy but sometimes you want, or need, a little bit more. So don’t be afraid to grab recommendations from TikTokers. Often influencers will drop their own favorite podcasts, books, courses, etc., on topics you may be interested in. So if you have a fave, use their recommendations as a jumping off point for your own learning.
Should Not: Mortgage advice
This one is widely debated even within the personal finance sphere. Some folks shout, “Pay off your mortgage ASAP!” Others preach, “Don’t put a penny more than you have to.” And it can get heated quickly. The thing to remember is that what worked for one, might not work for you. So if you are facing this question, try sitting down with a list of your assets, liabilities, and goals, and try calculating what makes the most sense for you!
Should: Frequent financial check-ins
If nothing else, the best thing finance TikTok can give you is a regular reminder to be mindful of your finances! Every time you scroll and see someone talking about how they funded their vacation can be motivation to set up your own high yield savings account and start stashing away some cash. Just like a new explanation of the envelope system can remind you to check in on your variable spending and set some cash aside for that grocery run later this week. So use finance TikTok as a reminder that your financial goal won’t work if you don’t!
Should Not: FOMO
This last one is not necessarily exclusive to finance TikTok or TikTok at all, but a reminder that while you scroll through any social media platform, that you cannot compare your financial situation to anyone else’s. You might see what looks like lavish examples of money, from perfect apartments to fancy vacations, but the truth is social media does not show the whole picture and everyone’s situation is unique. No matter what you see on social media, stay true to your own financial journey.
So here it is, your TL;DR…
Learning about personal finance on TikTok can be helpful, informative, and even entertaining. But remember that thousands and sometimes millions of people are seeing the same content you are so the advice is often general and might not be applicable to your financial situation. So keep scrolling and keep learning, but always stay focused on your own financial journey.
