TikTok has acquired a new obsession.
#FinTok is a phenomenon growing in popularity and making financial literacy information more accessible than ever before.
A portmanteau of “finance” and “TikTok”, FinTok is a type of niche content on the platform, centered around financial advice and strategies that anyone from everyday budgeters, breadwinners, moms, and financial advisors dole out. It covers various topics such as budgeting, saving, investments (stocks, cryptocurrency, and insurance), and even dating people in the finance industry (looking for a man in finance, anyone?)
Famous for its short-form video content, TikTok, has become a fertile ground for financial experiences and enthusiasts alike to share their stories and expertise. The platform’s algorithm promotes content based on engagement rather than follower count, allowing financial-related videos to go viral and reach a broad viewership.
So, what’s driving this unexpected trend?
- The Power of Storytelling
#FinTok ably uses visual storytelling through graphs, charts, and animated illustrations, which demystify complex financial concepts for easy comprehension and visual engagement. This approach makes learning more enjoyable and effective, as opposed to other conventional advice platforms that tend to be long-form, text-heavy, and jargon-laden.
Alongside appealing graphics that hook so-called doom scrollers (people who mindlessly scroll through reel after reel on their chosen social media platforms), FinTok creators bank on creative storytelling that have two important components: relatability and personalization.
- Stories of Personal Financial Journeys
Many #Fintok creators go beyond the polished facade of traditional financial guides by openly discussing their financial journeys, both the good and the bad. This transparency creates a sense of authenticity and relatability, which makes their advice feel more grounded and achievable to viewers.
- Tailoring Advice to Specific Demographics
#FinTok creators often tailor their advice to specific demographic groups, like Gen Z or Millennials. This way, they can ensure their content is better thought-out, and directly relevant and interesting to their intended audience.
- Humorous Language
The use of humor is widespread on the platform, and this is especially true for #Fintok, where the creators use it to transform a commonly dry topic into an entertaining learning experience.
- Simplicity and Accessibility
One of the hallmarks of what makes #FinTok so appealing is its simplicity. Specifically, the creators break down financial terminology into everyday language. This approach makes financial literacy more accessible, especially to those with no prior background in finance.
- Community and Interaction
#FinTok is not just about disseminating information; it’s also about building a community. Creators frequently encourage interaction through comments, challenges, and Q&A sessions – nurturing a feeling of inclusivity among their audience.
Trending Financial Topics on #FinTok
This section of TikTok is always full of valuable insights, with creators eager to impart financial wisdom, tips, and even actionable strategies. This could be in subjects, such as helping viewers identify potential entry and exit points for stocks, understand market trends, allocate assets, or mitigate risks. But the appeal is that they use their own experiences, so they can set realistic expectations and showcase the impact it has had on their lives.
These days, some of the hot topics are:
- Stocks and investing
- Budgeting and savings hacks
- Cryptocurrency and (the fall of) NFTs
- Credit score improvement
- Deals of the day
The Impact of #FinTok on Financial Literacy
Recent studies and surveys solidify #FinTok’s notable contribution to financial literacy, with many of its viewers reporting its positive impact, like journeys from overcoming debt to building investment portfolios after consuming this type of content. These success stories demonstrate just how effective these contents have been, not just in equipping users with knowledge and confidence, but also in inspiring a ripple effect that motivates others to take similar leaps towards achieving their financial objectives.
This impact is further reflected on the platform itself, with a 373% increase in finance-related videos from January 2023 to April 2024 (according to TikTok’s internal video post data). Additionally, a TikTok Marketing Science Custom Finances survey conducted by AYTM, CA in September 2023 found that 70% of users aged 18 and above believe financial topics to be important, emphasizing the growing demand for #FinTok’s content.
#FinTok with a Grain of Salt
Though #FinTok provides a wealth of financial knowledge, it’s still important to exercise caution:
- Misinformation and the Need for Fact-Checking
The platform is open to anyone, meaning content is not moderated, and not everything is guaranteed to be accurate or beneficial. To navigate this, users should first verify the information acquired to check its validity and consult with financial professionals to ensure it aligns with their financial goals.
- The Potential for Promoting Risky Financial Behaviors
Some critics warn that #FinTok might become a ploy for some people to scam unsuspecting individuals. To avoid falling prey to fraudulent scams, refrain from disclosing any personal information and conduct thorough research on the companies or the person advising to ensure legitimacy.
#FinTok has gamified the once-intimidating world of finance into an easily digestible, relatable, and fun learning experience for everyone. But this is only the tip of the iceberg because as this section of TikTok continues to develop, users can expect better content options, especially when the platform implements enhanced information verification measures to ensure legitimacy. So if this demonstrates anything, it’s that TikTok can also be a valuable educational tool.
If you want to penetrate this side of TikTok, or if you think you can get a trend going, working with a public relations agency is a good way to get your campaign off the ground.
Harmony Adiao-Carrillo is the editorial lead of NGP-IMC.
