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“I learn a lot about finances on social media (TikTok, Instagram).”

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“I’m full of financial advice from TikTok.” Here’s how to respond to this new reality.

Social media and personal finance: between opportunity and caution

Social media platforms like TikTok and Instagram have become popular sources of information about personal finance. Their accessibility and engaging format attract young adults seeking financial advice. However, this trend comes with both advantages and risks that must be understood to navigate the digital financial world effectively.

The benefits of digital financial education

Social media has democratized financial information. Concepts once reserved for experts are now explained in simple, visual ways, making finance more accessible. Influencers like Vivian Tu (@YourRichBFF) have made finance more inclusive and understandable, especially for women and minorities. In addition, methods like “cash stuffing” (allocating cash into budget envelopes) have helped some people manage their money more effectively.

The risks associated with online financial advice

Despite these advantages, it’s crucial to stay vigilant. A CNBC study found that about 60% of financial advice on social media is inaccurate or misleading. Some influencers promote financial products without disclosing their partnerships or commissions, which can bias their recommendations. In addition, many “finfluencers” lack formal training or certification in finance, which can lead to advice that is inappropriate or risky.

Adopt a critical and informed approach

  • Check the sources: Consult official websites such as those of the Autorité des marchés financiers (AMF) or Retraite Québec to verify the information.
  • Prioritize certified professionals: Seek out accredited financial advisors or recognized institutions to obtain advice tailored to your situation.
  • Avoid promises of quick gains: Be wary of content that guarantees high returns with no risk; in finance, high returns almost always come with higher risks.
  • Use social media as a starting point: Consider advice found on TikTok or Instagram as an introduction, but deepen your understanding through reading, courses, or professional consultations.

In conclusion

Social media can be a valuable tool for sparking interest and introducing financial education, but it should not be your only source of information. By combining these platforms with reliable resources and professional advice, you can make informed financial decisions that align with your personal goals.

Sources :

  • Kerr Financial. “How to Protect Your Family from Bad Financial Advice on Social Media”
    https://kerrfinancial.ca/fr/blog/le-guide-financier-kerr-fr/comment-proteger-votre-famille-des-mauvais-conseils-financiers-sur-les-medias-sociaux/ 
  • Business Cool. “Personal Finance: The Dangers of TikTok Influencers” https://business-cool.com/decryptage/analyse/finances-personnelles-tiktok/ 
  • Finance-Investissement. “Financial Education in the Age of Social Media”
    https://www.finance-investissement.com/nouvelles/economie-et-recherche/leducation-financiere-a-lere-des-medias-sociaux/ 
  • France Transactions. “Financial Education on TikTok, YouTube, Instagram… 87% of French People Consider the Advice Shared on Social Media Unreliable” https://www.francetransactions.com/actus/news-epargne/education-financiere-reseaux-sociaux.html 
  • Qtrade. “Financial Literacy in the Age of Social Media”
    https://www.qtrade.ca/fr/investor/education/investing-articles/financial-literacy/financial-literacy-in-a-social-media-world.html 
  • Chambre de la sécurité financière. “Financial Influencers: How to See Clearly” https://www.chambresf.com/fr/actualites/article/influenceurs-financiers-comment-y-voir-clair