When your parents had financial troubles or questions about planning for the future, they may have sought the help of a financial adviser, their bank, or other professional. Today, many people turn to social media.
When your parents had financial troubles or questions about planning for the future, they may have sought the help of a financial adviser, their bank, or other professional. Today, many people turn to social media.
TikTok in particular has become a hub of financial advice, from money saving hacks and personal stories to investment and stock market advice. But this information is not always reliable. A recent report found that more than 60% of videos shared using the hashtag #StockTok contain inaccurate or misleading information.
These days young people experience greater financial insecurity than previous generations. So it’s not surprising that many are anxious about financial matters and want to learn more about money.
I’ve conducted research with young people aged 18-24 years old about their financial and borrowing habits. Around half of the 80 people my team and I spoke to had used social media for money advice and financial guidance.
We observed several trends in the money messages they were absorbing. Many understood the importance of saving but there was a great interest in investing. Some perceived that if they didn’t invest in the stock market or cryptocurrency, they would be at a significant disadvantage compared to their peers. One 24-year-old participant described investing as a “rat race”, and said that politicians and news coverage of inflation added to the pressure.
Many interviewees had strong views on home ownership—property was viewed as “an investment”, while renting was seen as “wasting” money.
