Financial advice on TikTok is a volatile market

Social media is a growing source of financial advice for Gen Z and Millennials, but not all experiences in communities like #FinTok are positive. A survey published by Intuit Credit Karma found that most people in those cohorts have consulted creators on TikTok, YouTube, and Instagram for help with their finances, but some of them have since vowed to never trust #FinTok again.

Qualtrics conducted the study on behalf of Intuit Credit Karma by surveying 1,510 respondents over the age of 18. Though less than half of Americans seek financial advice through social media, 77% of Gen Z and 61% of Millennials are searching online to make sense of their dollars.

As demonstrated through previous studies, #FinTok is not the top source for financial creator content. YouTube remains #1 in that ranking, attracting 71% of Gen Z respondents. Instagram (50%) and TikTok (49%) are the next-most frequented destinations.

But #FinTok has come to represent a rising group of creators who have gained favor with Gen Z and Millennials by providing common sense financial advice for free. That community has been a dose of fresh air for young people who are concerned about topics like budgeting, taxes, and investing, but it contains a darker side as well. Poor advice and shills for scams are all too common on #FinTok, and Intuit Credit Karma’s survey shows that some viewers are fed up.

39% of Gen Z and 33% of Millennials reported that bad outcomes convinced them to swear off social media financial advice for good. In many cases, that decision was motivated by an IRS audit. 37% of Gen Z and 25% of Millennials said they have gotten into some form of trouble after taking advice from a financial creator.

TikTok has urged its users to #BeCyberSmart by scanning for bad advice as they watch #FinTok content, but it’s not always easy to suss out crypto scams and risky investments. For most of Intuit Credit Karma’s Gen Z and Millennial respondents, financial social content is a nice asset, but it’s not valued as highly as the most trusted sources for money help: Family and friends.