Can you get financial advice on TikTok?
4 things to keep in mind before taking financial advice from TikTok
TikTok has become a popular social media platform for lip syncing, sketch comedy and viral dance crazes over the last few years. But TikTok is no longer just a place where you can laugh and catch a vibe to the latest choreography.
From recipes to makeup tutorials, TikTok now has it all — including advice on how to manage your money. The next time you open up the app, you might see a TikTok influencer dishing out information on topics like how to build credit and budget your cash.
Can you take financial advice from TikTok? Short answer — yes. But as with any other social media platform, some people are worth following and others are giving bad advice. Here are some things to think about before taking TikTok money advice.
In this article:
Consider the source
Delivering TikTok money tips with music and dancing may be unconventional, but that’s not necessarily a bad thing, especially because personal finance can be an intimidating topic.
“TikTok is fantastic for financial literacy and empowerment for people who are on the wrong side of the financial gap,” said Claire Hunsaker, a Certified Financial Education Instructor (CFEI) and founder of AskFlossie. According to Hunsaker, women, people of color and other groups are building supportive, educational and inspiring content on TikTok to lift their communities.
A TikTok influencer may not look like the average financial expert of yesteryear, but that doesn’t mean they don’t have valuable information to share to their TikTok followers. “TikTok gets a lot of hate as a platform,” said Jake Founder, founder of DebtHammer, a personal finance publication that helps people make better financial decisions. That hate may stem from the fact that it’s aimed at a young demographic, and most of the people producing content are young, but Founder says there are some knowledgeable people on it wanting to share good information with their Gen Z audience.
The flipside to that, though, is that there are some people trying to cash in on the hype, and there’s money to be made — top TikTokers are reported to make millions of dollars per year.
Before taking a piece of financial advice, consider doing some digging into the source before you believe a TikTok creator. “The first thing you should do is look up the creator’s name to see if they’re remotely involved in the financial sphere,” said Founder.
If they aren’t, Founder says it doesn’t automatically mean their advice isn’t good; you should just try to cross-reference their advice with other reputable sources to see if it checks out.
Be very cautious of investing advice
Due to such factors as the market’s strong performance in 2020, the meteoric rise in the price of cryptocurrencies this year, and the bizarre meme stock/ GameStop situation earlier this year, people have a heightened interest in (and fascination with) investing.
Naturally, to feed that interest, influencers are using their platforms to discuss ways to put money into the market. While someone may be able to explain investment strategies in general terms, there are credentials necessary to offer investment advice, especially if you charge for it. Even for those doling out free advice on their TikTok account, keep in mind that investing comes with risk, and some influencers are discussing strategies where a lot of money can be lost.
Last year, a viral TikToker showed the process of options trading by investing $15,000 in Tesla calls. At one point, he was down $7,000, which would be no small sum for the average American. While he did put out a firm disclaimer — “please, don’t try this at home” — it’s an example of an investing strategy on TikTok that could cause you to lose a lot of money.
Julian Morris, a Certified Financial Planner professional and founder of Concierge Wealth Management, says few licensed financial professionals are giving advice on the social media platform, so beware. “It doesn’t mean you can’t follow someone’s budget hacks, but use extreme caution when taking advice about cryptocurrency, securities, exchange-traded funds, mutual funds or other real investments from someone on TikTok.”
If it sounds too good to be true, it probably is
Financial gurus are another thing to watch for, says Hunsacker. “If someone is going to tell you how to make a million dollars in 60 seconds, they are leaving out a lot.”
In some cases, advice could be illegal. Social media, including TikTok, has been a hotbed for bad tax tips. For example, some users preach the benefit of forming an LLC as a way to write off a bunch of expenses, including personal ones. Make no mistake — this may be tax evasion. (Before forming a business entity, it’s probably a good idea to speak with an attorney or an accountant instead of using information from a TikTok content creator.)
Keep in mind that not every TikTok star or personality on social media gives out advice for the betterment of others. “People on TikTok are more concerned with monetizing their following and generating likes and revenue for themselves than they are with helping you achieve financial success,” said Morris. This could motivate some to intentionally or unintentionally give exaggerated advice to create a viral moment.
General advice is often the most helpful
If you look past the click-bait advice that could lose you money or get you in trouble with the IRS, there’s a wealth of general information on the TikTok app that may be helpful to people who haven’t had a formal introduction to personal finance concepts. If a TikTok star is solely trying to boost their engagement and create a viral TikTok video, maybe try to stay away from this account.
For example, Vanessa Aragon’s channel teaches mortgage basics, such as how much you need to save up for a $450,000 home. PaydayPursuit channel has tips on side hustles. Lessons on the difference between a credit card and debit card, the importance of emergency savings, how student loan interest works and what happens during the homebuying process could all be valuable when taught through a short video in an engaging way.
Who would have thought the TikTok app would turn into a platform where you can keep up with the latest fashion trends and learn how to get your financial life together?
Remember, personal finance is personal
Whether you’re getting financial advice from an article or watching real money tips on YouTube, Facebook, Instagram, or TikTok, you should make sure it makes sense for your unique situation before applying it.
TikTok is much like any other platform where there are people giving out good advice based on a desire to help people. You can find these people by doing a bit of research into who they are and doing your own fact-checking on the advice they give to make sure it’s legit. Ultimately, the platform might be new, but finance advice — good, bad and weird — has been around as long as the market has. Time-tested rules of doing your due diligence still apply.
Our editorial policy
Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our editorial policy
Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.
Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus.html
What our customers are saying
Dec 8, 2021
Very happy with the whole process from…
Very happy with the whole process from start to finish on my application. Only area that could be improved is that my wife also applied and was rejected and we did not get a reason. She is a 30 year old female without any existing conditions so I was surprised.
–Matthewread more at
Nov 17, 2021
Hassle-Free Term Life Insurance!
The whole process was seamless and easy. My application for term life insurance was all done online. The rates are fair, and the people at Haven Life seem to genuinely care about their customers.
–Markread more at
Nov 10, 2021
Best life insurance company.
Best life insurance company.
–HNread more at
Nov 3, 2021
The process of getting life insurance…
The process of getting life insurance with you is a very smooth process. I really liked the way you communicated through the process and were on top of the things. I really appreciate it. Thank You for my peace of mind and my family’s peace of mind.
–ISMAELread more at
Oct 27, 2021
Super Easy and No Upsell!
Super easy! I was putting off purchasing life insurance as all I wanted was a term policy and was dreading the thought of having to meet or speak to a broker and deal with the dreaded upsell tactics. While researching options, I stumbled across Haven Life and began looking into it. Thrilled that I did. I could not have imagined an easier, more streamlined process from beginning to end. Very easy process and excellent, easy-to-understand documentation on the site.
–Thomasread more at