Wanita Isaacs, Head of Key Accounts at Momentum

Have you watched a personal finance video on TikTok lately? If so, you’re in good company – the #FinTok hashtag has amassed over 4.7 billion views, according to social media manager SocialChamp.

Worldwide, consumers are turning to social media creators and influencers for personal finance tips and education. The #FinTok hashtag has over 124 000 posts on TikTok, and especially younger consumers find value in it; around seven in ten people have found inspiration this way – 71% of Gen Z and 68% of Millennials say social media positively impacts their financial decisions, according to Sprout Social.

According to Wanita Isaacs, Head of Key Accounts at Momentum, the ability of finfluencers, including #FinTok content creators, to break down financial concepts into plain language and communicate it in a way that’s entertaining and relatable drives audience numbers. For many people, #FinTok and similar platforms allow them to learn about personal finance from role models who look like them and with apparently similar values and lifestyle, she says. Trends such as cash stuffing, loud budgeting, and underconsumption have made budget tips relatable while combating shame consumers often feel about their spending and saving habits.

At the same time, Isaacs says, users of these platforms have the responsibility to soundboard financial advice with an accredited financial adviser to make the right decisions. While social media influencers may seem relatable and authentic, influencers are rarely qualified in financial planning. In addition, their followers often don’t have the full picture of influencers’ business decisions, as they see only carefully curated and edited videos designed to persuade. Another consideration, Isaacs says, has to do with geographic location. With the biggest #FinTok communities located in the United Kingdom (UK) and the United States (US), their content may not be relevant for South Africans.

To find its audience, financial content for social media must be generic. However, Isaacs points out that when it comes to financial journeys, generic advice is ineffective, even if all followers are pursuing the same goal. “A concept like financial freedom looks different for everyone because their unique circumstances come into play – no two financial journeys are alike”, she says and adds: “A financial goal, whether short-, medium, or long-term, can best be achieved with expert, tailored support. It follows from there that generic advice, meant to reach as many people as possible, is not always the best advice. However, bespoke and tailored advice is only possible when working with a financial adviser qualified to give advice and who understands local conditions”, she says. Also remember that anyone can post on #FinTok, but not everyone is qualified. Financial advisers are trained and regulated professionals who are held to ethical and legal standards.

Financial advisers don’t just focus on one area like budgeting or investing – they look at your entire financial picture. From retirement planning and insurance to estate planning and debt management, an adviser can help you navigate all aspects of your financial life in an integrated way. This comprehensive approach ensures you’re not making decisions in silos or overlooking important risks.

How to get the most out of #FinTok

Wanita says the role of #FinTok and other similar platforms in helping to diversify and democratise personal finance is an important one to create awareness of the importance of financial planning. Their content can also be helpful in starting or deepening conversations with a financial adviser, even if it is just to get an expert opinion on the relevance of social media financial advice.

• Save the videos or posts you enjoy and share it with your financial adviser. By sharing social media content that helps you articulate your experience and perspective, your adviser will have more context and will also be better equipped to advise you.
• Follow or connect with your adviser on social media so you can easily and quickly reach out for advice.
• As with all financial content, critical thinking is essential. Watch out for scammers and evaluate whether the strategies shared are right for you. Ask your adviser for a second opinion.

In closing, Isaacs emphasises that because it takes your circumstances into account, tailored advice will always be more impactful. “Engaging with a financial adviser allows you to take what you see on social media, discuss it, and apply the relevant elements to your own life, at your own pace. It can also prevent you from making expensive mistakes and help you – with the expert advice from your financial adviser – stay on track to achieve your unique financial goals, also in your own time,” she says.

ENDS