Some Kiwis Turn to TikTok for Financial Advice – 1News | Vette Leader

Some young Kiwis say they turn to social media app TikTok for financial advice.

High schooler Hannah Corbett told 1News she used TikTok for money-saving tips when she landed her first part-time job.

“I wanted to make sure I was saving, but also allow myself to spend.”

Corbett says there are many TikTok accounts that give financial advice, but she doesn’t think many people take up this information.

She said she uses TikTok and Instagram, but is less likely to save clues to Google.

Another high school student, Dotti Baker, says she doesn’t search for financial advice videos on purpose, but they show up on her feed.

“TikTok is very good at grabbing people’s attention compared to Google because it’s short, quick videos so you don’t get bored,” Baker said.

But she says she’s tired of some content on the app and talks to her parents when she’s feeling unsafe.

“I think when it comes to trusting what you read on TikTok, you need to take everything with a grain of salt and never rely on it for information.”

Otago University student Katie Thompson, 21, also told 1News that she uses the popular app to research stocks.

“I went through a real phase trying to get into stocks and stuff like that [TikTok] really the only media company that simplified it so I could understand what they were saying, everything else was just a bit confusing.

Thompson said she finds TikTok more efficient compared to search engines like Google.

“There’s just so much information on Google, and I’m also a visual learner, so I understand it better on TikTok and it’s so much faster.

“Even if I can find a few videos I’m looking for, there’s something like an algorithm that sort of shows you the same relevant videos again.”

Thompson said the stock and financial information usually appears legitimate because she’s seen it from several different users on the app.

Chartered Accountant Luke Kemeys has a following of 16,000 on TikTok, where he shares financial advice in 30-second videos.

Kemeys told 1News he gets a lot of engagement with the app, with a video about unclaimed money getting more than half a million views.

He said the idea behind his videos is to help people, rather than doing business for himself. “I think people learn a lot, which is cool.”

Kemeys said there is no way for TikTok users to know its content is legitimate unless they dig deeper and research it.

“I think people these days are pretty good at digging and saying whether or not that person is full of shit.”

“There’s a lot of confusing information out there for people, but I feel like young people are pretty good at what might and might not be a scam,” he said.

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Kemey said many of his listeners are younger people who want to “kick ass” to get their finances in order.

Financial journalist Frances Cook has more than 80,000 followers on TikTok and says 60% of her audience is also younger people aged 20 to 40.

Cook posts videos about mortgages, savings tips, credit card scams, and investing.

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She says her audience is overwhelmingly female, which she thinks is because she’s relatable.

“It kind of opens up the conversation when you see someone talking about it who looks and sounds like you, then I think it’s a little bit easier to feel like the conversation is for you, which I’m good at.” find.”

She told 1News one of the reasons she created a TikTok account is because she saw a lot of “questionable” personal finance content.

“I just thought I’ll start posting some stuff from my work and then at least there’s some good information to counteract that [bad information].”

Cook said some people might be dubious when they first see her videos, but she thinks that’s a good thing.

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“When people don’t just take things at face value I think that’s great and that’s why I make sure I use my real name, I don’t use a nickname or anything on my TikTok and I say there that I’m a tax officer journalist .

“Hopefully, if people say a little, ‘Who is this chick?’, they can just google me and know that I’m actually someone who knows what I’m talking about and not just someone who just posts stuff .”

Social media users should take a buyer-friendly approach when looking for financial advice online, says Cook.

“Just because someone has a large following doesn’t mean they know what they’re talking about.”

She also said people should check what qualifications people have before taking their advice on board.

In June last year, the Financial Market Authority (FMA) published guidelines for “influencers” (financial influencers).

The FMA said the guidelines were formulated after some concerns from social media influencers that they are providing unregulated financial advice to a large audience.

Some of the guidelines proposed by the FMA state that it is okay to talk about financial matters online as long as it is kept general.

New financial advice laws also came into effect last year, requiring people to be licensed as financial advisors if they are providing regulated financial advice to ordinary consumers. Those who falsely pose as financial advisors face fines of up to $200,000.

A spokesman for the FMA told 1News the guidelines were created because “financial influencers” are becoming more prevalent online.

“We are very aware of how many people are online and the influence they have.

“We wanted to make it as clear as possible to people that sharing information and talking about financial matters plays a role, but there’s also a really important line to know that not to cross when providing that what you might imagine regulated financial advice.”

Cook said she spoke to the FMA as she was putting together the guidelines, which she says is “really interested” in getting it right.

“I think it’s very good that the FMA is keeping an eye on this, but of course it can’t be everywhere.”

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