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Viral dance videos helped make TikTok the most downloaded app of 2021. TikTok had 656 million downloads in 2021, and has amassed over 2 billion downloads. Roughly 50% of TikTok’s audience is under the age of 34, with almost a third between 10 and 19.
As a result of its explosive growth, many creators have flooded TikTok with short, engaging financial educational videos. Creators have posted a wide range of videos, from basic financial concepts to more complex ones about the stock market and investing in options.
Is TikTok the future of financial education?
According to a survey conducted by Magnify Money, 41% of those between 18 and 24 and about 25% of investors ages 18 to 40 sought financial advice from the platform. Creators are taking complex financial concepts and delivering them in an entertaining way.
With only seven states requiring high-school students to take a personal finance course, and with financial literacy particularly low among Gen Z, there is a ready audience seeking to learn more. According to the S&P Global Financial Literacy Survey, 43% of Americans are not financially literate -- and gaps in financial knowledge can lead to chronic money issues.
Creators have delivered thousands of financial education videos that are more appealing to younger viewers. Videos tagged #moneytok and #fintok have had 11.3 billion views and 927.3 million views, respectively. TikTok creators have capitalized on its user-friendly platform and large audience.
TikTok’s Limitations
TikTok videos can be up to three minutes long. It can be difficult to condense complex financial concepts in that length of time. As with any social media platform, there are many videos that are inaccurate and offer bad advice.
It is important for viewers to not take everything at face value, and do their own research. The number of views on a video doesn’t necessarily reflect its accuracy. Viewers should know who the advice is coming from -- certified professionals are more likely to post accurate financial content.
Many viewers understand that financial wellness is linked to financial literacy. TikTok is delivering financial education that is more appealing to viewers. But viewers need to double-check advice and understand the source of the information before using it to make financial decisions.
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