The Rise of TikTok Personal Finance Gurus: Separating Fact from Fiction
As I scrolled through my TikTok feed, I stumbled upon a video that claimed to reveal the “secret” to saving thousands of dollars a year. The creator, a charismatic and energetic individual, shared their supposedly foolproof method for achieving financial freedom. While the video was engaging and entertaining, I couldn’t help but wonder: is this advice actually legitimate?
Erin Lowry, a personal finance expert and author of the Broke Millennial series
The hashtag #PersonalFinance has amassed a staggering 7.9 billion views on TikTok, with users flocking to videos that promise to help them save money and make smart investment decisions. But with so much information available, it’s essential to separate fact from fiction and ensure that the advice being shared is trustworthy.
I spoke with Erin Lowry, a personal finance expert who has contributed to the New York Times and Bloomberg, to get her take on the viral money-saving hacks circulating on TikTok. Lowry is the author of the Broke Millennial series, a collection of books that aim to educate readers on financial literacy.
While Lowry acknowledges that personal finance information is being democratized through platforms like TikTok, she emphasizes the importance of fact-checking and verifying the information through additional research. It’s crucial to ensure that the advice being shared comes from credible sources and actual experts, rather than simply following a charismatic creator’s claims.
The Dangers of Oversimplification
One of the significant concerns Lowry has with TikTok’s personal finance advice is the tendency to oversimplify complex financial concepts. “[If] you’re trying to explain more than one very simple, high-level concept, you’re going to be diluting the information down to a point where it might not even really be effective,” Lowry warns.
A collection of books on personal finance and investing
Lowry’s advice is to take the information shared on TikTok with a grain of salt and to always do your own research. Don’t be afraid to ask questions, seek out multiple sources, and consult with actual experts before making any drastic decisions with your money.
The Importance of Financial Literacy
The rise of TikTok personal finance gurus may have its drawbacks, but it’s undeniable that it has sparked a conversation around financial literacy. As Lowry points out, “personal finance information is being democratized in the form of easily available TikTok videos.”
Achieving financial freedom requires more than just following viral advice
While there are certainly some credible sources sharing valuable information on TikTok, it’s essential to approach these videos with a critical eye. By doing so, we can ensure that we’re making informed decisions about our financial lives and taking control of our relationship with money.
