TikTok’s financial sector, known as FinTok, has become a wild and chaotic environment, where millions of users turn to the platform for advice on managing money. But experts warn that amidst the avalanche of posts, many viewers are being misled by harmful “get-rich-quick” schemes and inaccurate financial strategies.
Dr. Brad Klontz, a financial psychologist and associate professor at Creighton University, first encountered TikTok through his nephews, who introduced him to the platform’s entertaining animal videos. What he didn’t expect was to soon stumble upon a plethora of financial advice, particularly content promoting day trading.
“I was sort of blown away because I thought, erroneously, of course, that day trading died in the tech bubble when everybody lost all their money,” said Klontz. “But there’s an entire new generation of people who think they can beat the market. And then I got concerned, because I know how this ends.”
Recognizing the opportunity to address the misinformation, Klontz launched his own TikTok account, @drbradklontz, aiming to provide credible, research-backed advice to counter the myths flooding FinTok. His mission: to cut through the noise and share more reliable, if less glamorous, strategies for financial success.
“I could make viral videos every day by saying stuff like, ‘buy this stock today, and you will become a millionaire next week.’ I mean … people watch those videos. It’s very clickbaity; it’s everybody wanting to become wealthy,” he explained.
Despite the overwhelming presence of poorly researched financial content, Klontz is part of a growing movement of educators striving to provide practical, long-term wealth-building advice. These experts focus on helping viewers build financial literacy, rather than succumb to the temptation of fast, risky profits.
Rising Interest, But Dangerous Risks
The surge of interest in stock trading, particularly among younger demographics, has been linked to the strong stock market performance in recent years, as well as events like the GameStop short squeeze in early 2021. A Wells Fargo survey revealed that nearly half of U.S. millennials became more interested in investing after the frenzy. However, the allure of “easy money” often leads to risky behavior.
A 2022 survey by the B.C. Securities Commission found that 18 to 24-year-olds are more inclined than older groups to take significant investment risks, believing they can time the market for huge returns.
This rising interest in high-risk financial ventures is evident across TikTok, where countless videos promise quick wealth. But experts like Klontz are concerned that many young people are setting themselves up for financial ruin by following these enticing but unreliable strategies.
The Influence of Social Media
Millennial finance expert Jessica Moorhouse, who has built a successful career teaching financial literacy through her blog, podcast, and social media platforms, also cautions against the dangers of social media-driven financial advice. Moorhouse, who has turned down multiple offers to promote cryptocurrency products, says that recognizing potential scams is crucial.
“If it seems scammy, listen to that voice inside you … because that check is usually right,” Moorhouse advises. “We all know what a get rich quick scam looks like; they’ve been around for years.”
She believes the financial advice ecosystem is similar to the fitness industry, where misinformation can spread just as quickly. “You’ve got to be so careful who you follow and trust… are they going to give you bad information about meal planning and diet and exercising because they’re not actually trained?” she asks.
Fighting Back Against Misinformation
Despite the challenges of combating misinformation in such a fast-paced, viral environment, both Klontz and Moorhouse are committed to changing the narrative around financial education. Their efforts have been bolstered by TikTok’s #LearnOnTikTok initiative, which has helped bring their content to a wider audience.
Klontz remains optimistic about his mission, even joking about how his financial tips have made him the “cool uncle” to his young relatives, who now turn to him for advice.
“I have some clout—some of my cousin’s kids, when I get around them, will be looking at me like I’m a celebrity,” he laughs. More importantly, they’re looking to him for guidance on how to manage their finances—a shift that speaks volumes about the influence of trustworthy voices in a sea of misinformation.
