Gen Z Smart Money Blog: Is #FinTok steering your money in the right direction?

By Abby Hobrough, Old National Bank

Have you noticed more creators talking about their investing, budgeting or student loans? A growing trend called #FinTok is a space for financial advice on social media, specifically TikTok. However, like all sides of social media, #FinTok is filled with more creators than we can imagine, making it hard to know where you can place your trust.

Financial literacy, or how we like to call it -- financial empowerment, is vital in making informed decisions about your money. However, money management is not a one-size fits all, like your new headphones or favorite oversized hoodie. Finding financial information, mentors, and educators that understand your individual needs is essential.

Next time you see financial advice online, where you are unsure of credentials, personal history and any get-rich-quick motives or partnerships, remember the steps ahead to practice smart learning and money management.

Why does Financial Empowerment Matter?

According to Google, financial literacy is the ability to understand and apply financial concepts and skills in relation to debt management, savings, and investments across a lifetime to help plan a secure future, manage debt and build wealth.

Here are some key areas where financial empowerment can improve your future, beginning at any age:

• Building wealth: Learning about investing, retirement planning and saving to grow wealth.
• Preventing financial hardship: Understanding ways to tackle debt, taxes and credit to manage your risk.
• Setting and achieving financial goals: Discovering your priorities and long-term goals, whether it’s travel or preparing for a family, to create financial goals you know how to achieve.
• Avoiding scams and misguided information: Recognizing red flags, fraudulent activity and misguided advice to protect your money.

Spotting Red Flags

Who do you trust on social media with financial advice? Do you look towards your favorite influencers, millionaires, financial creators, your bank, or other financial professionals? Since there is no regulation for non-FDIC (Federal Deposit Insurance Corporation) affiliated entities or individuals that share financial advice online, it is smart to be wary of red flags like these below:

Lack of Transparency

Trustworthy educators should back their knowledge with trusted reasoning and sources, rather than falling short or not painting a full picture of their financial management strategies. An example of this may include sharing advice without reason.

Blanket Solutions

Money management should fit individual needs based on personal history and goals. Educators should not offer generalized advice, especially without discussion of risk. discussing risk.

Encouraging Get-Rich-Quick Methods

Financial planning takes time, knowledge and routine smart choices which quick promises can lack. Money-promising and excess product promotion could show a lack of viewers’ best interests.

Oversimplification

Many financial topics are complex, detailed and confusing when first learning. Presenting financial information in an oversimplified manner can cause misunderstanding and poor money management.

Trustworthy Sources: Questions to Ask

Following trustworthy sources on social media will look different for everyone. For some, this may look like financial planners, analysts, professionals or institutions. For others, you may prefer research-backed financial creators and bloggers. Maybe you have an influencer that you regularly take advice from.

Regardless of your preference, information shared should be accurate, detailed and clear, balancing both risks and rewards. As you seek credible sources, be mindful of information on social media compared to industry standards and research.

 Here are some questions to ask yourself next time you’re scrolling on #FinTok:

1. Who is the source? Do they have relevant credentials or qualifications?
2. Is the information clear, accurate and detailed?
3. Does their content acknowledge risks?
4. Are their claims backed with trusted reasoning or resources?
5. Is their advice applicable to my financial situation?

Being Smart for You

Finding trustworthy sources for financial empowerment doesn’t have to be overwhelming. By asking the right questions and staying wary of red flags, you can sift through the noise and content that may feel too good to be true. Next thing you know, you’ll begin to build a bank of financial resources to help you make smart money choices.

Click here to view our Smart Money Half-Minute videos for young adults starting their financial journey, or to browse our Real-Life Finance library of resources.