Beware of TikTok Advisors: The Dark Side of Viral Financial Advice
Written by Laurie Allen, CFP for LA Wealth Management
In a world where a swipe of your finger can deliver bite-sized tips on budgeting, investing, or retiring early, it's no surprise that millions turn to TikTok for financial guidance. But here's the problem: not everyone who gives advice is qualified to do so—and some are flat-out dangerous.
As a financial advisor, I've seen firsthand how misleading or oversimplified TikTok content can send smart people down costly paths. Let's break down why you should think twice before trusting your "For You Page" with your financial future.
🚨 Red Flag #1: They're Not Qualified
Many TikTok creators offering financial advice have no formal background in finance. They're not Certified Financial Planners, tax professionals, or fiduciaries. Some may have learned a few things from Reddit or their own experience and now call themselves "experts."
In reality, they're monetizing your attention—not prioritizing your best interests.
Example: Some TikTok creators suggest that you can write off personal vacations as business expenses by forming an LLC. While there are legitimate business travel deductions, misrepresenting personal trips as business expenses can lead to audits and penalties.
What you should do: When you’re choosing a financial professional, look up their credentials to confirm they have the needed training to offer sound advice.
🤥 Red Flag #2: Hypocrisy Behind the Screen
Some influencers preach about how much they're making a show flashing luxury cars they leased at high interest rates. Others promote specific investments or credit cards without disclosing that they're being paid to do so.
They might be selling you on the dream—not living it themselves.
Example: A great example is Byron Denton, a 19-year-old influencer who faked a luxury lifestyle on Instagram—editing photos to show himself on private jets, wearing designer clothes, and shopping at high-end stores. He claimed his wealth came from passive income, and followers eagerly bought into the illusion. In reality, it was all a social experiment to prove how easily people can be misled by curated content. His viral stunt highlighted just how deceptive influencer culture can be—especially when financial freedom is part of the pitch. (Source)
💥 Red Flag #3: Shock Value Over Sound Strategy
TikTok runs on virality, not nuance. Complex strategies are reduced to 15-second hacks like "Never pay off your mortgage—it's a scam!" or "Max out your credit cards to boost your credit score." These make for great engagement but can lead to real financial damage.
Real Story: Steven and Katherine Wolf purchased a home with the expectation of refinancing to a lower interest rate. However, as rates remained high, they found themselves stuck with an uncomfortable mortgage payment, making little progress on other debts. (Story link here)
What to Watch Out For
Here are a few red flags to help you spot risky or misleading financial content:
"This is what they don't want you to know."
Encouragement to manipulate taxes or credit.
Promises of guaranteed returns or "get rich fast" schemes.
No disclosures or transparency about affiliations.
Overuse of buzzwords like "passive income" or "hack" without substance.
What You Can Do Instead
Vet the source. Check credentials like CFP® or CPA
Ask who benefits. Are they selling a course, promoting a product, or truly educating?
Double-check with a professional. A 30-second clip shouldn't guide a 30-year financial decision.
Trust your gut. If it sounds too good to be true—it probably is.
Final Thoughts
TikTok can be a fun place to learn about money—but it shouldn't replace personalized advice from a licensed professional. Your financial plan deserves more than hype and hashtags.
Before you jump on the latest viral trend, ask yourself: Would I bet my financial future on this person's experience? If the answer is no, scroll on.
Here are some helpful resources:
Federal Financial Literacy and Education Commission (FLEC). This is a federal entity established under the Fair and Accurate Credit Transactions Act of 2003. The commission is chaired by the Secretary of Treasury and the director of the Consumer Financial Protection Bureau (CFPB). The commission runs MyMoney.gov, a national financial education website that includes resources for money management, taxes and more.
Consumer Finance Protection Bureau (CFPB). The CFPB is a federal consumer watchdog agency established in the wake of the 2008 financial crisis. The bureau is also dedicated to providing financial literacy resources to consumers in its consumer education section. Financial education topics that can be researched on its website include auto loans, debt collection, mortgages, student loans and more.
Securities and Exchange Commission (SEC). The SEC is an independent federal government regulatory agency. Part of its duties are to protect investors, which makes it a great source for education on how the stock market works, different investment products and how to vet investment professionals. You can visit the SEC’s consumer education website at Investor.gov.