Watch out for TikTok Holiday Money Tips. This Expert Shares How to Spot Bad Advice

As a financial coach and social media influencer, my feed is filled with tons of personal finance “hacks.” While many of us are looking for ways to find deals and save money this holiday season, it’s worth checking out any tips you get on TikTok.

Some of the advice is good — but some tips can be dangerous or in some cases, illegal.

Just last month, I saw TikTok reels in my feed encouraging people to try this Chase Bank “hack” to get free money. Chase Bank had a major system problem that allowed people to write fake checks, deposit them at ATMs and withdraw money instantly. This “money hack” wasn’t just bad advice; it actually encouraged check theft, which is a crime.

Most of the bad money advice on social media isn’t that extreme, but it can still be dangerous. I’ve seen Instagram reels encouraging followers to blindly invest in stocks, start buying and flipping houses or start their own startup business – all without explaining the risks or upfront costs.

Following the wrong money advice can cause financial problems. As a professional who shares personal finance advice online, consider these tips before blindly following any social media accounts.

Read more: Money Worries? Here’s the Expert Advice I’ve Followed on Getting Smarter With My Money

Always do your research

Don’t make a big financial decision based on a 30-second TikTok video. Instead, take the time to research the topic and ask questions.

For example, a simple Google search about the Chase glitch would have turned up news articles explaining that “this money” was actually a check scam.

Look for credentials

TikTok and Instagram can help, but they are mainly sources of entertainment. Financial advice can be fickle and boring, which is why social media influencers like to “make it interesting” by offering risky advice.

I recommend looking for a certified financial planner, financial coach, accountant or certified public accountant. You may choose to follow them on social media rather than influencers to ensure that the advice you receive is not harmful.

Run “free money”

If something sounds too good to be true, it probably is. An influencer sharing how to make “free money” is probably trying to sell you an investment opportunity or a multi-level marketing strategy that will encourage you to try something illegal.

The right ways for you I can Making money is often slow – earning interest on your savings, growing your 401(k) or generating income.

Consider the risks, not just the reward

As a financial professional, I have seen how stress affects my clients’ decisions. When you’re faced with debt or debt that you can’t pay, you’re likely to focus on the “reward” part of financial advice rather than the risks.

I encourage my clients to tap into their intuition and pay attention to the emotional side of their financial choices. Journaling is a great way to do this.

You can start by making a list of pros and cons. Write down the pros, cons and even questions you may have before taking the next step. Then research the answers to those questions or meet with a licensed financial professional to learn more.

There is no shortcut to wealth

There is no secret formula to get rich overnight, but there are proven steps you can follow. While not all social media money advice is bad, always be careful when following money advice online. While you are finding the right financial fit for you, there are still some steps to take. Live below your means, build an emergency fund, manage your debt well and make smart investments that you feel confident about.

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