Tshego Bokaba, Consumer Financial Education at Momentum Group
Almost 18 million South African users aged 18 and older…
Opened 20 times a day on average…
Third most popular social media platform in SA (73.6%), surpassed only by WhatsApp and Facebook…
In case you haven’t yet guessed, we’re talking about TikTok – the viral video-sharing social media app that didn’t come to play. In parallel to this growth, TikTok’s financial arena, ‘FinTok’ – which sees users posting videos on saving, budgeting, stocks and other financial matters – is also racking up some staggering numbers.
Over the past year, there has been a 373% increase in FinTok video posts. To give you another idea of the depth of this appetite for financial content, #cookingtips and #healthtips are two popular hashtags that have generated 3.1 billion and 3.2 billion views respectively on TikTok. But #personalfinance, on the other hand, still leaves these in its browser history, with a staggering 5.1 billion views.
But is it wise to turn to a social media platform for advice on something as serious as money? Tshego Bokaba, who oversees Consumer Financial Education at Momentum Group, gives an overview of its pros and cons.
“FinTok can be a powerful tool, offering users inspiration on how to creatively think about and manage their finances. From drawing up an effective budget to providing a simple explanation of how the stock market works, FinTok meets users where they’re at, and has been credited with encouraging youth to take more of an interest in their finances, she says.
“On the downside, it’s risky to put all your trust in a medium that has a low barrier to entry – meaning anyone, regardless of their agenda or whether they’re qualified or not – can offer advice. This can be a breeding ground for misinformation and scams.
“Moreover, remember that while some of those posting videos on TikTok might have the necessary financial credentials, there is a big difference between the SA market and the US, for example, which can contextually change the information offered. Plus, generalised financial information should never substitute personalised and professional financial advice.”
She adds that TikTok users should be wary of blindly following the latest FinTok trends. “Turn to your favourite finfluencers for inspiration, but always seek proper financial guidance before making big money moves,” says Bokaba.
Bokaba weighs in on four popular FinTok trends:
1. Cash Stuffing
Cash stuffing is a form of budgeting, which sees individuals allocate cash to multiple envelopes designated for different expenses, such as groceries, rent, and entertainment. This tactile approach is said to help people better visualise their budget and manage their spending habits.
Expert POV:
“While cash stuffing might help you develop a more hands-on relationship with your money, it’s not always practical (try paying your rent in cash and see what your landlord says!) or safe. Most places have introduced cashless methods of payment due to security reasons.
“You’ll also miss out on credit/debit card rewards – which can be very useful and save money, says Bokaba. “Drawing up a budget – either on paper or using any of the digital tools available – is your best bet, and there are countless videos on TikTok that offer practical advice on how to do this.”
2. Girl Math
Girl Math is a humorous trend where users justify their non-essential spending with tongue-in-cheek logic; for example: “Returning a dress that cost me R250 and then buying another that costs R350 only counts as spending R100!
Expert POV:
“While seemingly light-hearted, Girl Math can be a dangerous trend, as it perpetuates a stereotype that women are not mathematically or financially inclined and therefore it’s expected that they will make poor financial decisions,” she says. So be careful before you chalk up a non-essential spend to ‘Girl Math!’
3. Loud Budgeting
This trend sees users openly discussing and sharing budgeting strategies and financial goals, in an effort to create open conversations around money and foster a supportive online community.
Expert POV:
“Loud Budgeting can be empowering, in that it can inspire you to spend more consciously while encouraging honesty with those closest to you about your financial situation and goals. Sometimes people feel vulnerable or ashamed to say they don’t have the money to partake in a certain activity, but ‘Loud Budgeting’ means being realistic about your financial circumstances.”
4. A Day in the Life (FinTok edition)
This trend offers audiences a glimpse into the lives of others, following users as they document their day-to-day lives, focusing on financial decisions and habits.
Expert POV:
Bokaba says: “These posts can be motivational, educational and inspiring, offering users practical tips to establish good financial habits and make sound money decisions. But never follow advice blindly; educate yourself through various credible sources, seek personalised and professional advice where necessary, and decide what makes sense for you.”
ENDS
