More Americans are Turning To TikTok for Financial Education

Filling a Void

There is no national education requirement for financial literacy in the US, leaving many Americans under-informed on topics such as saving, budgeting, and smart spending.

Americans looking to fill this void are turning to the internet to source financial info, but obviously some sources are better than others. (You should really check out On the Money and SoFi Learn!) In particular, TikTok has become a go-to source for personal finance tips. (You can even follow SoFi on TikTok! )

Textbook TikTok

A staggering 80% of Americans aged 18 to 41 reported sourcing financial advice from social media. Meanwhile, many financial education content creators on TokTok have racked up millions of views on their videos. These videos can cover anything from finding a beginner credit card to diffusing money-related conflicts.

TikTok may be a popular source for digestible financial information currently, but it’s by no means the first. “Relatable” financial content also gained steam on blogs back in the early 2010s.

Americans tend to turn to each other in search of information. When it comes to personal finance, that’s a great place to start — but it shouldn’t be the end.

One App Doesn’t Fit All

TikTok is a great way to introduce consumers to financial topics they might not have known of. However, many such topics are far too complicated to be explained in a single 60-second video.

And as Abraham Lincoln once said, don’t believe everything you read on the internet. Social media platforms incentivize engaging content (i.e content that receives more comments and shares) over rigorous and accurate reporting, so some information on TikTok may be misleading or outright wrong.

Not all TikTokers are trying to mislead you — but they will have a completely different set of circumstances than you do. What’s best for you probably won’t be the same thing that’s best for strangers with different financial goals, risk tolerances, and lifestyles.

So, while TikTok can be a useful source of financial information, be sure to conduct your own research or even contact a professional before making any major decisions in regards to your finances.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23030101