TikTok's finfluencers and pros and cons of their content
In this piece, we'll identify these content providers and discuss whether or not they should be trusted as a source of information about personal finance.
They are sweeping TikTok and Instagram; it is becoming increasingly common to find influencer accounts that give advice related to finance and money management. They are the so-called "finfluencers."
In this article, we will tell you who these content generators are and if they are reliable or not to learn about personal finance. Remember that it never hurts to be careful with the information and recommendations we choose.
The "finfluencers" on social networks
Most of them are young people who understand that millennials and centennials love to learn on their own, mainly through digital media. Hence, social networks have been the ideal target for the growth of "finfluencers" or "tip-fluencers."
With the help of "hashtags", they have managed to leverage and an example of this is that, at the end of September 2021, on TikTok, #FinTok achieved more than 500 million views, while #cryptocurrency got more than 2 billion views; on Instagram, #financialfreedom appeared in more than 10 million publications, according to BBVA.
Finfluencers have managed to viralize financial information of all kinds on social networks, such as tips on personal finance management; analysis, and the latest news on cryptocurrencies; investment strategies; digital platforms where you can take the first steps to create a business or start investing; taxes, among others.
In general, they focus on sharing educational content with simple and quick terminology; in some other cases, they share their own experiences regarding savings or generating extra income, even about their stock market gains and losses.
Finfluencers are mostly young people who understand that millennials and centennials love to learn on their own, mainly through digital media.
But why do young people prefer to consult the information offered by finfluencers and not specialized media? Common Vision's research shows that millennials don't trust specialized media because they don't think there is enough clear information about the problems facing their generation.
Figures show the trend of increasing search for information about personal finance in social networks and online communities, since, according to New Morning Consult, 71% of the centennial and millennial generations value more financial information that comes from someone like them.
According to financial advisor MagnifyMoney Advisor's survey, about 60% of investors under 40 are part of investment communities or forums, and 46% turned to social networks for information on the topic, preferring YouTube, TikTok, Instagram, Twitter, Facebook groups, and Reddit.
Not everything that is said on social networks is true
Although it is a reality that finfluencers have managed to focus the attention of young people on financial education topics, we should not lose sight of the fact that these content generators obtain benefits by monetizing the views on their channels or digital profiles, which include promotional content, product sales, or investment courses, among others.
The above may represent certain risks if the information disseminated does not warn of the dangers associated with some of the products being promoted or if the investments lack financial strategies.
The National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) recommends those who consume this type of content be careful when following some advice that may put not only their finances or their patrimony at risk, but also their security.
If you like finfluencer posts, follow these tips:
If you want to invest in any product promoted by TikTok, you must first verify that the financial institution referred to is regulated by the National Banking and Securities Commission.
Always compare the information on social networks with different institutional sources, for example, with the information available on the National Commission for the Protection and Defense of Users of Financial Services or National Banking and Securities Commission websites.
Consider that some of the recommendations that circulate through social networks may be paid mentions, and not in all cases, it is specified.
For example, some investment products recommended in networks may be high-risk for your finances, cryptocurrencies, or they may be fraud.
If you are interested in learning more about how to have a healthy financial life, we recommend you take financial education courses, where you can obtain more complete information.