After Gamestop frenzy, TikTok and Instagram are now considered top sources of financial advice
Gamestop sparked a frenzy on Reddit that lit up TikTok.
The dizzying rally for the game retailer's stock that followed helped establish social media as one of the most popular sources for financial information, tips and advice, particularly among Gen Z, according to a new CreditCards.com report — second only to friends and family for the 18-to-24 cohort.
In fact, Gen Zers are nearly five times as likely to say they get financial advice — including stock tips — from social media as adults in their 40s or older, the report found.
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Among teenagers, nearly half are learning about investing from social media despite ranking it as one of the least trustworthy sources for investing advice, according to a separate survey by Greenlight, which provides debit cards and savings accounts for kids.
Roughly 38% of teens are turning to YouTube and one-third look to TikTok, Greenlight found. One-quarter go to Instagram for personal finance and investing advice.
Greenlight polled more than 1,000 teenagers between the ages of 13 and 20 from Feb. 26 to March 2. CreditCards.com surveyed more than 2,600 adults in March.
Like all things on social media, not all of the "expert" advice you see is necessarily true.
"The unfiltered, unvetted nature of social media can be concerning," said Ted Rossman, senior industry analyst at CreditCards.com.
"Just like you probably shouldn't take that hot stock tip from your cousin, the same thing goes here," he said. While there are ways to vet traditional financial advisors, it's much harder to find out the intentions or possible conflicts of interest of someone spewing advice online.
Just like you probably shouldn't take that hot stock tip from your cousin, the same thing goes here.Ted Rossmansenior industry analyst at CreditCards.com
"You need to figure out what works best for you and that's going to require putting in a little bit of work and a little bit of research."
In addition, "it's important to remember that personal finance is very personal," Rossman added. "Everyone's circumstances are a bit different."
What one user says works for their finances won't apply to the millions of other TikTok viewers watching. "That's why it's important to blend a variety of outside perspectives with your own experiences and goals," Rossman said.
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