TikTok is the newest platform for learning how to manage your money – ConsolidationNow

IMPORTANT POINTS

  • TikTok, the enormously popular social media platform, just launched a new campaign called #LearnOnTikTok Washington State office.
  • Financial specialists like Dr. Brad Klontz sought to harness TikTok for financial education.
  • The majority of TikTok users are under 24, and early exposure to personal finance is crucial for subsequent financial stability.

Americans have difficulty with financial literacy: According to a poll conducted by the Global Finance Literacy Excellence Center, 63% of Americans lack financial literacy West Virginia – ConsolidaitonNow.

This is unsurprising given that just six states mandate high school students to take a course on personal finance. However, there is hope coming from an unexpected source: TikTok.

TikTok, owned by ByteDance, is hot. The site’s content is primarily happy and easy, like lip-synch karaoke or trendy dance moves. The length of the clips is restricted to 60 seconds, but the average is 15 seconds. The app was downloaded over 11 million times in March loans in Wiscsonsin.

TikTok has launched a new program called #LearnOnTikTok. The initiative will support a variety of instructional movies to give possibilities for learning during the Covid-19 lockdown. The programming is supported by TikTok’s $50 million creative learning fund, which is part of the company’s more significant $250 million commitment to dealing with the pandemic’s effects.

Leave FinTwit behind

One of the content providers receiving funding is Dr. Brad Klontz, a specialist in financial psychology, behavioral finance, and financial planning. Klontz started using TikTok in October 2019 and already has over 72,000 fans.

While Twitter has established itself as the preferred platform for some of Wall Street’s most intelligent minds, TikTok fosters a more intimate and arguably organic ambiance from billionaires to financial gurus. Much of FinTwit activity may be unrelated to your investment portfolio, much alone financial advice. “The material exchanged among members and then disputed seems to be sufficient for post-graduate education,” Michael Policar, a financial manager in Washington State, commented on LinkedIn.

According to Influence Marketing Hub, most TikTok users are young, with 41% between the ages of 16 and 24. Active users of any of the platforms may communicate with content authors.

“Every day, I’m replying to hundreds of comments,” Klontz said.

Klontz initially discovered TikTok through his 14-year-old nephews and was taken aback by what he saw. “I saw some very appalling financial advise,” he said.

Disappointed by what he saw, Klontz felt driven to begin creating meaningful information based on his financial knowledge in wealth psychology.

Klontz’s strategy is straightforward: generate material that educates young people about the psychology of riches while allowing for his expression. Klontz acknowledges that TikTok allows his personality to show through, sometimes interjecting a dancing motion with sound advice. While most of his uploads are motivational pieces, he occasionally shares his financial troubles.

“There are so many young individuals on the platform, and I am on a mission to teach them about wealth psychology. A portion of it is because I grew up in a low-income family and (wealth) was a great mystery to me.”

While financial education is a concern, Klontz maintains that most individuals already know what to do.

“I have yet to meet a 16-year-old who does not understand the need of saving and not spending more than they earn, or who cannot tell you that,” he added. The more serious issue, according to Klontz, is people’s attitudes about money.

Klontz’s team at Creighton University performed research in 2017 comparing the impact of a financial education course vs. attitude training. The researchers revealed that participants in the mindset course raised their savings by an astounding 67%, while those in the personal finance course improved by 22%. Since then, Klontz has increased his focus on attitude training, rewiring people’s brains to associate money positively.

While producing a video on Youtube may take up to eight hours, Klontz claims the simplicity of TikTok allows him to reach a larger audience. “With TikTok, I’ll get an idea, film it, and publish it in five minutes,” he said.

Confidence but verification

Catherina Tobias is a certified financial planner and the creator of Financially Wise Women. She joined TikTok four years ago as an early user.

“I assumed it was a dance app at the time and discontinued use. However, I rejoined a few months ago. I viewed it as a way for me to express myself creatively by creating stuff around money.”

While Tobias views the site as a means of disseminating financial information, she does so with care “If you visit TikTok seeking guidance on a certain issue, bear in mind that it is TikTok. Individuals create amusement (engaging content). And two, continue your hunt for credentialed experts.”

If you are unsure about a creator’s qualifications, you may verify them with CFP Board or afponline.com. Due diligence goes a long way. According to Tobias, the financial business is highly regulated, and you can quickly discover information on any licensed expert.

Tobias feels TikTok lowers the barrier to financial education by enabling her to teach financial education and give financial counseling in an easily-understandable manner. “I just want to make money enjoyable for people,” she said.