I’m a Financial Advisor: Here’s My Take on Recent FinTok Trends

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It was only a matter of time before the financial world and TikTok merged, giving way to what is now known as “FinTok.” This is what the platform has dubbed its up-and-coming viral trend where users share their financial advice — from portfolio investment tips to digging out of credit card debt.

FinTok’s business is booming, and knowing that TikTok is becoming an ever growing presence in our lives, last year the social media giant launched Swaypay. Swaypay is an app that actually lets users make money for doing what they normally would on TikTok: influence more people!

“FinTok trends can offer valuable insights and inspiration for personal finance enthusiasts,” says Ben Gold, founder of Recommended Home Buyers. “However, it’s essential to approach these trends with caution and do thorough research before making any financial decisions. Consulting professional advice from financial advisors is always a wise approach to ensure well-informed decisions and long-term financial success.”

GOBankingRates asked Gold, along with some legitimate financial experts and advisors (not via TikTok), for their two cents when it comes to FinTok trends. Here’s what they had to say, as well as some words of wisdom about financial advice in general.

FinTok Trend No. 1: Micro-Investing

“While micro-investing apps like Acorns and Stash encourage saving and investing habits, they may not offer substantial returns for users with limited contributions,” Gold says. “However, they can be beneficial as a starting point for beginners to learn about investing and gradually build their portfolios.”

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FinTok Trend No. 2: Crypto Trading Tips

“Many FinTok creators share cryptocurrency trading tips, which can be both enticing and misleading for novice investors,” shares Gold. “Although some tips may provide valuable insights, it’s essential to conduct thorough research and consult professional advice before making any investments in the highly volatile crypto market.”

“TikTok is no exception to the global use of cryptocurrency,” adds André Disselkamp, personal finance expert and the cofounder of Insurancy. He goes on to explain that a new viral trend on TikTok is known as the “Crypto Craze.”

“Users are providing trading and investment advice on cryptocurrency,” says Disselkamp. “While this tendency motivates more individuals to learn about FinTok, it is making waves in today’s volatile financial environment by transforming the way individuals seek financial advice.”

FinTok Trend No. 3: Side Hustle Ideas

“FinTok often features side hustle ideas to generate extra income,” Gold notes. “While some suggestions can be helpful and inspiring, others may overpromise or lack feasibility. It’s crucial for individuals to assess their skills, resources, and time constraints before diving into a side hustle.”

FinTok Trend No. 4: Frugal Living

“This trend focuses on money-saving methods and adopting a minimalist lifestyle,” Disselkamp explains. “I personally find that it [encourages] a more mindful and responsible attitude to buying. However, some netizens claim that it glamorizes poverty and portrays it as a lifestyle choice rather than a genuine issue that many people face.”

FinTok Trend No. 5: Investing for Beginners

“This trend involves TikTok users sharing their investments. It also poses trading cryptocurrency-engaging experiences and recommendations for others who are just getting started in the investing market,” says Disselkamp. 

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“While this is a positive trend since it encourages young folks to begin investing early, it has certain negatives,” Disselkamp explains. “The biggest worry is that these self-proclaimed experts may lack the required qualifications or expertise to provide financial advice. Investing your money in the wrong place might result in significant financial losses.”

FinTok Trend No. 6: What Would I Do If I Was Back in My 20s?

“This trend is all about sharing personal financial advice that individuals wish they had received when they were younger,” says the Great Financer. “It aims to empower and guide the younger generation towards making informed financial decisions early in life.”

“Your twenties are a critical period for shaping your financial future, and the advice shared in these videos can help navigate the complexities of personal finance,” adds the Great Financer. “From investing in the stock market to establishing an emergency fund, the tips and experiences shared can inspire and educate viewers.”

Overall, there was a general consensus to take any FinTok information with a grain of salt. While sincere intent might come with the advice — some of which can prove helpful — there are numerous videos with iffy strategies and shaky motives, to say the least.

Many of the financial advisors GOBankingRates contacted stress the importance of doing additional research from reputable sources to back the information shared on FinTok. They highlighted that not all information is equal. When it comes to financial advice, it’s best to triple-check your info and make sure all your bases are covered.

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