Is TikTok the New Financial Advisor? Why That Advice is a Risky Bet

TikTok isn’t just for dance trends or hot takes, it’s where a large amount of people go to learn everything, including how to make, save, and invest money.

A new financial literacy survey by MarketWatch Guides found that 1 in 10 Americans now turn to TikTok for financial guidance. Among Gen Z and Millennials, the number’s even higher - but experts are warning: we’re trusting these bite-sized bits of financial advice a little too much.

When Advice Feels Right In Tiktok, But Isn’t

Lindsey Crossmier, a financial writer for MarketWatch, says there’s nothing wrong with learning the basics online.

“Looking up what a Roth IRA is or understanding how compound interest works? That’s fine,” she explains. “But when it comes to personal decisions, like what to invest in, how to pay off specific debt, or how to hit a savings goal, TikTok shouldn’t be your financial planner.”

That’s because everyone’s situation is different. What worked for a 23-year-old making six figures from affiliate links might not make sense for someone dealing with student loans, job instability, or just trying to afford rent in a big city.

And still, according to the same survey, many people said they trust this advice completely, without second-guessing its accuracy.

Advice From Friends, Family... and the Algorithm

It’s not just TikTok creators we’re listening to. The study also found that 45% of people rely on friends or family for money advice, and while that can feel comforting, it’s not always smart.

Crossmier urges people to pause and do some due diligence.

“Just because someone says they’ve made money doesn’t mean they’re giving sound advice,” she says. “Look up their credentials, read reviews, and make sure they’re actually qualified, especially if they’re presenting themselves as a financial advisor.”

Even people with a title might not be licensed, which is why experts recommend verifying through sites like FINRA’s BrokerCheck or the CFP Board’s database. Overall, TikTok financial advice is very risky.

Financial FOMO Is Real

The pressure to be financially “ahead” can feel overwhelming, and that pressure gets worse when social media shows you people your age buying homes, paying off massive debt, or claiming to make thousands from passive income streams.

But what you’re seeing is often a highlight reel, not the full picture.

A 2023 CNBC survey revealed that nearly 70% of Millennials and Gen Z report feeling financial anxiety, often tied to social comparison, misinformation, and unrealistic timelines for success (source).

This financial FOMO leads many young adults to chase strategies that aren’t sustainable or safe, like jumping into crypto, trying to time the stock market, or maxing out credit cards to build “businesses” with no real foundation.

So What Should You Do?

It’s okay to be curious. And yes, some creators genuinely want to educate. But if a post sounds too good to be true, promises instant results, or doesn’t consider your unique circumstances, it’s a red flag.

Start with trusted sources:

• Certified financial planners

• Government-backed tools like MyMoney.gov

• Nonprofits like the National Endowment for Financial Education

And if you do use TikTok or Instagram for money content, treat it like an entry point, not the final word.

Final Thoughts On TikTok's Financial Advice and the Risky Effect

We’re all trying to figure this out, whether it’s budgeting, investing, or just surviving another month of rising costs. There’s nothing wrong with using social media as part of that journey.

But the key is knowing where TikTok ends and real financial planning begins.

You deserve more than viral tips and unverified hacks. You deserve advice that fits your life, not someone else’s.