Could TikTok be the next financial advisory centre?

Most people know TikTok for its memes, short-form videos and other such content, but there is also a small community that takes it a little more seriously.

According to a report by NextAdvisor, the platform is seeing a thriving personal finance community on it.

Among the popular contributors to this community is Humphrey Yang who goes by @HumphreyTalks, as per the report. With daily videos ranging from credit basics to cost breakdowns of popular items, he’s gained more than 8,00,000 followers in just eight months.

“I thought I could help people by making short videos on personal finance,” Yang told NextAdvisor. “There seemed to be an appetite on YouTube already, so I figured I could make it more applicable for TikTok.”

But not everyone is convinced

“How well can you address complex issues with good advice in that short a period of time?” asks John Pelletier of Champlain College in Burlington, Vermont. “I’m not saying it’s not possible, but it’s harder to describe these things in 60 seconds,” he told NextAdvisor.

However, many content creators appear to recognise the limitation of the platform, and have taken to using it to introduce their viewers to personal finance topics, that they may be driven to learn more about.

One such person is Delyanne Barros who goes by @DelyanneTheMoneyCoach and began posting about debt payoff, investing and financial independence on TikTok in February 2020. An employment attorney by day, Barros began sharing personal finance tips on Instagram, growing it into a side business.

“I just want people to hear the words index funds and ETF. My goal is just to build that vocabulary for people, to pique curiosity,” she says.

Another user, Tori Dunlap, took to creating finance content online because topics like debt payoff and investing can be intimidating for everyone, especially women. “Just by the nature of social media, it already becomes more accessible. You’re not asking somebody to go to a different site or do something extra, you’re just meeting them where they’re already existing,” she told NextAdvisor.

The platform does have some inherent risks, however, with get-rich-quick schemes finding their way into these communities, the report says.

“A lot of people are really impressionable, especially online,” Yang told the publication. “Maybe they’re in a really bad situation, then they see a predatory ad or content that promises them something that only a fraction of people can achieve. That’s really tough.”

“People should be careful,” Barros warns. “A lot of people are looking for specific advice in a cookie-cutter world. They need to take everything they see with a grain of salt and understand that their situation is unique.”

TikTok is an awareness driver, Yang says as“it’s where you can get into personal finance, learn a little bit more, or get a quick 30-second tip each day.” Then it’s up to you to continue your education.