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It was only a matter of time before the financial world and TikTok merged to make way for what is now known as “FinTok.” This is what the platform calls an upcoming viral trend, where users share financial advice, from portfolio investment tips to digging out credit card debt.
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FinTok’s business is booming, and the social media giant launched Swaypay last year, recognizing that TikTok is becoming more and more present in our lives. Swaypay is an app that allows users to actually make money by doing what they normally do on his TikTok: influencing more people.
“The FinTok trend could provide valuable insight and inspiration for personal finance enthusiasts,” said Ben Gold, founder of Recommended Home Buyers. “However, it is important to approach these trends with caution and conduct thorough research before making financial decisions. Make informed decisions to ensure long-term financial success. To do so, it is always a wise approach to seek professional advice from a financial advisor.”
GOBankingRates asked Gold to pay 2 cents along with some legitimate financial experts and advisors (not via TikTok) regarding FinTok trends. Here are their opinions and some words of wisdom for financial advice in general.
FinTok Trend No. 1: Micro Investments
“Microinvestment apps like Acorns and Stash encourage savings and investment habits, but may not offer significant benefits to users with limited contributions,” said Gold. “But it’s a useful starting point for beginners to learn about investing and gradually build a portfolio.”
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FinTok Trend No. 2: Crypto Trading Tips
“Many FinTok creators share cryptocurrency trading tips that can be both tempting and misleading for novice investors,” said Gold. “While some tips may provide valuable insight, it is advisable to conduct thorough research and consult expert advice before investing in highly volatile cryptocurrency markets. It’s essential.”
“TikTok is no exception to the global use of cryptocurrencies,” added André Dieselkamp, personal finance expert and co-founder of Insurance. He went on to explain that the new viral trend on TikTok is known as the “cryptocurrency boom.”
“Users are providing trading and investment advice on cryptocurrencies,” Dieselkamp said. “While this trend has led to more individuals learning about his FinTok, it has also changed the way individuals seek financial advice, with repercussions in today’s volatile financial environment.”
FinTok Trend No. 3: Side Hustle Ideas
“FinTok often features side hustle ideas that generate extra income,” Gold points out. “Some suggestions are helpful or inspirational, while others are overly-promising or under-implemented. It’s important to.”
FinTok Trend #4: Living Frugally
“The trend focuses on ways to save money and adopt a minimalist lifestyle,” Dieselkamp explains. “For me personally, it [encourages] A more careful and responsible attitude to purchases. However, some netizens claim that it glorifies poverty and portrays it as a lifestyle choice rather than a real problem faced by many. ”
FinTok Trend No. 5: Investing for Beginners
“This trend involves TikTok users sharing their investments. It also provides those just starting out in the investment market with an engaging experience and recommendations for trading cryptocurrencies.” says Dieselkamp.
“While this is a positive trend because it encourages young people to start investing early, it also has certain downsides,” Dieselkamp explains. “Our biggest concern is that these self-proclaimed experts may lack the necessary qualifications and expertise to provide financial advice. may result in financial loss.”
FinTok Trend No. 6: What Will You Do When You’re Back in Your Twenties?
“This trend aims to share personal financial advice that individuals wish they had received when they were younger,” says the great financier. “It aims to empower younger generations and guide them to make informed financial decisions early in life.”
“The 20s are a critical time in shaping your financial future. The advice shared in these videos will help you navigate the complexities of personal finance,” added the great financier. rice field. “From investing in the stock market to setting up an emergency fund, the tips and experiences shared can inspire and educate our audience.”
Overall, there was a general consensus to take all FinTok information with a grain of salt. The advice may have sincere intentions, and while some of it is helpful, there are many videos with vague strategies and uncertain motives, to say the least.
Many of the financial advisors contacted by GOBankingRates stressed the importance of conducting additional research from reputable sources to corroborate the information shared on FinTok. They emphasized that not all information is the same. When it comes to financial advice, it’s best to triple check your information and make sure all grounds are covered.
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