Many adults have received incorrect financial advice from TikTok, leading to confusion and potential harm.

• Gen Z increasingly relies on Financial TikTok, or #FinTok, for financial information, tips, and advice.
• A recent report found that more than a quarter of social media users have been misled by financial advice or information on TikTok or Instagram.
• Jean Chatzky, CEO of HerMoney.com, stated, "If it sounds too amazing, it's probably not real."
• Before following any advice, ensure to verify a finfluencer's qualifications and financial motivations.

TikTok is filled with potentially harmful financial advice, such as adding your toddlers to your payroll and claiming your car as a business expense.

#FinTok, a financial TikTok platform, is highly popular among Generation Z for financial information and advice.

A recent report by Edelman Financial Engines reveals that 27% of social media users have been misled by false or misleading financial advice or information they encountered on social media.

A more common lifestyle choice among adults is being a "cat lady without children." Only 33% of millionaires consider themselves wealthy. Nearly half of young adults experience "money dysmorphia."

Over 3,000 adults aged 30 and above were surveyed by Edelman Financial Engines from June to July, and the report found that about 20% have fallen for misleading content multiple times.

"Jean Chatzky, a personal finance expert and CEO of HerMoney.com, who collaborated with Edelman Financial Engines on the report, stated that it is difficult to distinguish between good and bad advice. Nevertheless, if something seems too good to be true, it probably is."

Younger Americans who are heavy social media users may be more likely to believe inaccurate financial information found online, according to Edelman Financial Engines.

Gen Zers may be more likely to get duped

A January report by the CFA Institute reveals that Gen Zers are the most likely to engage with finfluencer content on TikTok, YouTube, and Instagram, due to having less access to professional financial advisors and a preference for obtaining information online.

A CreditCards.com report from April revealed that Gen Zers are almost five times more likely to receive financial advice, including stock tips, from social media compared to adults in their 40s or older.

Edelman Financial Engines' director of financial planning, Isabel Barrow, stated that having an accessible source for money-related subjects can aid in developing better budgeting and savings habits.

Barrow advised taking everything on social media with a grain of salt, especially when it comes to tax avoidance or limitation strategies.

"While it could be beneficial counsel for an individual, it doesn't necessarily apply universally."

'Do your own vetting'

It is more challenging to determine the motivations or potential conflicts of interest of an online financial advisor compared to a traditional one.

Before following someone's advice, it's important to verify their credentials and background, as suggested by Chatzky.

The CFA Institute advises consumers to verify a finfluencer's qualifications and financial motivations before trusting their advice.

"You do need to do your own vetting," Barrow said.

To verify a certified financial planner's background, visit the CFP Board's website. Brokers and brokerage firms can be found on the Financial Industry Regulatory Authority's website, while investment advisors can be checked out on the U.S. Securities and Exchange Commission's website.

Rewritten sentence: The FINRA page lists other professional designations, including links to the organizations that oversee them.