Saudi Press

Saudi Arabia and the world
Thursday, Apr 18, 2024

FinTok: How the cost of living crisis helped turn TikTok into a hub of financial advice

FinTok: How the cost of living crisis helped turn TikTok into a hub of financial advice

From breaking down the (former) mini-budget to navigating the murky realms of crypto, and even the best apps to invest with, Financial TikTok is populated by content creators offering their advice on how to survive the cost of living crisis.
Alongside the rising cost of living has come the rise of FinTok, an online world of personal finance guidance.

From breaking down the (former) mini-budget to navigating the murky realms of crypto, and even the best apps to invest with, Financial TikTok is populated by content creators offering their advice on how to survive the cost of living crisis.

It's not the first time people have turned to the platform for help, with budget recipes and energy-saving hacks (including showering at the gym) going viral in recent months.

But as the cost of living grows, this new side of the app grows with it.

Moving beyond the viral dances, cat videos and feta pasta recipes that made it so popular in the pandemic, research by Ofcom shows TikTok is one of the top three news sources for teenagers - up there alongside Instagram and YouTube.

From sweets at school to four figures a month

Poku Banks began as an entrepreneur selling sweets at school but turned his personal finance degree from the University of Nottingham into a source of income, sharing guidance with his 341,100 TikTok followers.

Now, he said, he can make up to four figures a month from the platform, sharing tips including; the best ways to fund a holiday using investments, advice on car finance or how to use freshers week as an entrepreneur.

With 41% of users between the age of 18 and 24, TikTok is particularly popular among Gen Z.

"Growing up Gen Z, we have short attention spans and that's life," he said explaining why he prefers condensing complex topics into short videos.
Research by One Poll for Westfield in October 2022 of 1,046 teenagers and 2,050 adults found 60% of people now choose social media as the best place to get financial advice amid the cost of living crisis.

Those aged 12-17 said they have sourced their best money-saving tips from TikTok and say they have valued this kind of advice much more than what they get from their parents or school.

As a result, over a third of the age group say they have put away between £100 and £500 in personal savings as a result of the tips.

A TikTok spokesperson said: "TikTok is a place where millions of people come to be entertained, but also to learn. As more people seek financial information online, it's important to us that we help our community access the right support and advice on TikTok, especially if they may struggle to access it elsewhere.

"We've long partnered with Citizen's Advice to produce informative videos and our #FactCheckYourFeed campaign. Most recently, we launched a new Cost of Living Hub - to bring together all the best tips from our community and help people make the right financial decisions for them."

'Wealth bros'

A brief search under the hashtag #stocktok shows videos of creators making "thousands in seconds" and promising "stocks that will make me rich in 2023".

Laura Pomfret, from Financielle, said: "If people in our community are asking us, should I invest in cryptocurrency, I would say, well it's completely up to you but let me tell you what cryptocurrency is, I'll tell you what some of the risks are so you can make your own decision."

But with anyone able to create an account and upload videos - and no real formula for what catches attention and goes viral - there are concerns about navigating the platform and how safe it could be to follow some of the guidance.

"I do worry. On my For You Page [TikTok's personalised homepage] yesterday was a 'wealth bro' from America saying you should finance a car and invest that money instead," said Laura.

"[He was] promising returns that aren't going to happen, and when I see stuff like that it makes me uneasy."

Searching for financial hashtags brings up a disclaimer from TikTok, reminding users that "all investments bring risks" and to never disclose personal information on the app.
It also gives tips on how to recognise if something is a scam, alongside a TikTok from Citizen's Advice.

"I like, all of us, don't give financial advice," Ellie Austin-Williams from This Girl Talks Money told Sky News.

"And for a lot of people, this is a real misconception. A lot of people are like, 'oh well I need a financial advisor on TikTok, to tell me what to do'.

"A financial advisor, no matter how qualified they are on TikTok cannot tell you what to do.

"They are not allowed to."

'I'm never going to sell you anything'

Like all social media platforms, Ellie said there is a "proliferation of scammers" out there who impersonate her account.

"It's particularly bad in finance," she said.

"I'm never going to sell you anything, I am never going to encourage you to trade.

"It's just a case of having a bit of caution at the back of your mind that if something sounds too good to be true, then it is."

Poku added that all the advice is based on their personal experiences, and while they "may push you in a way, or a direction, that we believe is the best", both use disclaimers on their content, warning users to only invest what they can afford, or reminding them that no investment has guaranteed returns.

Female overload

Less than 50 years ago, a woman couldn't open a bank account in her own name. Now, female entrepreneurs are using their TikTok platforms to try to close that gender gap.
Laura Pomfret, and sister Holly Holland, began Financielle in 2016 when Laura was on maternity leave.

From a northern working-class background, the former lawyer said she was "just rubbish with money as a graduate living in the city, spending everything I made" because she "never had any financial education".

"It's kind of concept of the female overload whether you're a mother or a daughter or whether you kind of you've been left out or these conversations, money feels overwhelming," the mother of three said.

TikTok, she said, appeals as a platform because you have to condense subjects down into short 60-second videos (although the app is now trialling longer content, shorter videos remain some of the most popular).
"We want things that are short and snappy, that can cut through the noise and tell it was like it is," she said.

Amid the confusion of the last few months - with a mini-budget announced then scrapped, two new prime ministers and multiple chancellors - Laura said: "There was a huge amount of economic terms being bandied around, with people saying 'I'm trying to make sure that I can pay my bills and I'm trying to work out what quantitative easing is or whether the interest rate thing is going to impact me or not'."

'Everything was aimed at my parents'

Ellie, 35, says the target audience of This Girl Talks Money is 91% female and predominately Gen Z.

When she first began researching personal finance, she was frustrated by how everything was aimed at "my parent's age, rather than me" and felt if more financial literacy was taught in schools, perhaps there would not be such a need for these online creators to fill the gap.

"What we need is compulsory sessions," Poku added, although he was quick to caveat that he doesn't blame individual teachers.

"Every adult looks to invest, into a pension or themselves, we know we'll get a credit card one day yet we're not told about credit scores.

"So essentially, we are thrown into the world and we don't know anything."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×