From TikTok Gurus To Instagram Scams: How To Tell The Good Money Advice From The Bad

Many of us turn to social media for how-tos, and that includes money advice. Research has found that 61% of young adults trust social apps for investing tips. Another found that social media is a sweet spot for those of us in younger generations, with 76 percent of Gen Z and 65 percent of millennials looking to the platforms for financial guidance.

Scrolling through TikTok for money tips can feel like getting free financial coaching in bite-sized videos, but it’s still the Wild Wild West of information. One minute you’re learning about investing, the next you’re told how to “get rich quick” with a side hustle or crypto trick. 

While entertaining and sometimes genuinely helpful, it’s super-risky relying on social media for money tips. Not all “finfluencers” are qualified, and some are outright misleading. A recent report found that 71 percent of the financial advice consumed by Gen Z and Millennials is misleading, and only 13 percent of influencers had the relevant qualifications and credentials to advise on financial matters. 

Since it’s Financial Literacy Month, let’s get into how you can tell the difference between solid money advice and a scam:

A polished video doesn’t equal expertise. Look for certifications like Certified Financial Planner (CFP), Certified Public Accountant (CPA), Certified Financial Education Instructor (CFEI), or chartered financial consultant (ChFC). You can use sites like BrokerCheck or the CFP Board to research. Find their bios and work experience via LinkedIn or other professional websites. Check reviews and other indicators of positive real-life impact. If someone doesn’t mention qualifications, or there’s hardly anything online that could reflect credibility, those are red flags. 

Real investing involves risks, but if someone skips over the downsides, they’re selling a fantasy, not advice. Look out for claims like “guaranteed profits” or “turn $100 into $10,000 fast.” Phrases like these are classic warning signs of potential scams.

Legitimate creators are upfront about content that is sponsored or that promotes a product. If someone is pushing a stock, app, or course without saying how they benefit, be cautious. Hidden incentives can distort advice that can affect your life for better or worse. Skipping disclosure or important context for content can raise an eyebrow when it comes to trust and ethics. Keep in mind that in many states or cases, disclosure is legally required.

Good advice often sounds boring, especially when it comes to budgeting, saving, and long-term investing. Bad or scammy advice is flashy, emotional, and urgent. If the goal seems to be views, clicks, or selling a lifestyle–and the content seems a bit sensational— you’re probably watching entertainment, not education.

While a social media post might be informative or even lead you in the right direction on finding resources to make a sound financial decision, always fact-check information with at least two other sources. This is especially true when it comes to topics like taxes, real estate investing, and stocks. Be sure the information is up-to-date or even relevant to you based on your location, lifestyle, and other factors. 

Social media isn’t, in itself, inherently bad for financial literacy or advice; however, it shouldn’t be your only source. Treat social media as a starting point, not a final authority. Look to experts at your local financial institutions, trained and experienced money management professionals, and trusted financial literacy organizations. Your money decisions deserve more than a 60-second video. Financial management deserves careful thought, research, and, when needed, professional guidance.