00:00Learning about money no longer means sitting in a classroom or speaking to a bank advisor.
00:06For many people, especially younger adults, the first place they look for information about investing, budgeting or building savings is
00:14social media.
00:15Short videos can make complicated subjects easier to understand, but they can also blur the line between education, opinion and
00:23advertising, making it harder to judge which advice can be trusted.
00:2737% of Gen Z investors said influencers are one of the key reasons they decided to start investing.
00:36So, you know, time's gone by. It may have been your parents teaching you about credit cards, savings, investment, things
00:41like that.
00:42Now, more and more people are getting their first touchpoint on social media platforms.
00:47So against that backdrop, we wanted to understand, well, you know, what's the quality of this content online?
00:52Who are these creators and can it be trusted?
00:55Researchers who reviewed 150 widely viewed finance videos on TikTok found many creators did not clearly explain their professional background,
01:05while discussions of potential rewards appeared more often than explanations of possible losses.
01:10The study also found promotional content and affiliate links were common, with disclosures not always prominent.
01:17Consumer groups and financial regulators have repeatedly warned that investing always carries risk and that decisions should not be based
01:26on a single source of information.
01:28One of the main things is that the actual algorithm and the short form format of content on TikTok doesn't
01:36lend itself to providing balanced, well-rounded financial information.
01:40You know, a 60-second video that says buy the stock and you'll make loads of money is likely to
01:47get a lot more attention and traction on these platforms than a five or ten minutes balanced explainer that, you
01:54know, clearly articulates you might lose money and this is how.
01:56I think it's easy to focus on the negatives and, you know, we talked about some of those problems, but
02:01we came across lots of helpful content, genuinely useful content, people trying to teach young people about important concepts like,
02:11you know,
02:12the power of compound investing over many decades, the importance of saving, how you can budget your, you know, your
02:19monthly income to be able to make sure you're saving and investing.
02:23So there are people doing the right thing and we shouldn't forget that.
02:27And as you say, potentially it's a net benefit if lots of people are learning about some of these core
02:32financial concepts and setting up healthy habits early on from content they've come across on these platforms.
02:38The Financial Conduct Authority says social media has become an increasingly important source of financial information, particularly for younger people,
02:46but it encourages consumers to verify claims before investing and to check whether firms are authorised.
02:53Experts also recommend looking for balanced explanations that discuss both risks and rewards,
03:00understanding whether a creator may benefit financially from recommendations
03:04and comparing advice with information from established organisations before making important financial decisions.
03:12A TikTok spokesperson says keeping our community safe is a top priority.
03:17Our guidelines make clear we do not permit content that brings about financial or personal harm
03:21and we have specific rules banning Pyramid, Ponzi or similar schemes.
03:26There's a few things that viewers can do.
03:27One is always apply a healthy dose of scepticism.
03:31You know, ask, why is this video on my feed?
03:34Why is the creator creating this content?
03:37If you spot any subtle plugs to a particular product or service, then you know that might be their motive.
03:45Be very, very wary of any content that instills a sense of urgency.
03:50So we saw videos that would say, you know, buy this particular investment or these stocks because the stock market
03:57is about to crash on Monday.
03:58So you can make money urgently. That should be a big red flag.
04:02You know, investment decisions should be well thought through.
04:04They should be researched and they shouldn't be emotionally driven and done in urgency.
04:09And the other thing people can do to sort of make sure the content they're getting is sensible and can
04:15be relied upon is to cross reference it with other reputable sources.
04:20You know, have the have the financial conduct authority provided any information or warnings on that topic equally cross reference
04:28it against, you know, content and sources from regulated financial institutions.
04:34Social media is likely to remain one of the main ways people discover financial information and many creators provide useful
04:41educational content.
04:43But as regulators continue to examine online financial promotions, viewers are being encouraged to treat viral claims with healthy scepticism
04:52and seek trusted advice before making decisions that could affect their finances.
04:58Be sceptical. Be sceptical. Be careful. Always ask, why am I being served this content? And make sure you do
05:06your due diligence content you come across on on TikTok should be start the start of the learning journey. It
05:12shouldn't be the end.
05:13I mean,
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