Almost 80% of young adults say they turn to social media for financial advice. But maybe they should find another source.
A new report by Social Capital Markets found that 71% of financial advice used by Gen Z and Millennials is misleading, and only 13% of influencers had the proper qualifications and experience to advise on financial issues. This past summer in the UK, for example, several social media influencers were charged with promoting financial schemes to millions of followers.
The study analyzed 2,470 TikTok, YouTube, and Instagram videos with relevant hashtags (#StockTok, #Investing, and #Stocktips), looking for “misleading” posts with important elements, including innocence, to encourage viewers to invest certain property, and means a guaranteed return.
Related: Here’s How Much an Influencer With 21 Million Followers on YouTube, Facebook, and TikTok Makes
Of the videos analyzed, 83% lack self-discrimination and provide a “one-sided view of financial decisions,” according to the report. Meanwhile, 57% of the stock content means guaranteed returns.
Social Capital Markets
TikTok, Instagram, and YouTube had the most misleading posts
According to the report, TikTok was named as the No. 1 platform. 1 most dangerous, with 91% of videos containing no catchphrases and 70% promoting the purchase of a stock.
Instagram was found to be the second most problematic, with 88% of financial videos without disclaimers and 65% promoting certain stock investments.
YouTube came in as the third platform with the most misleading posts, characterized by being “aggressive in pushing certain stock picks,” with 76% of posts failing to include a disclaimer and 75% promoting certain investments.
Related: How To Make TikTok Work For Your Business
Why Is TikTok Considered The Most Dangerous Part Of Financial Advice?
In addition to the high number of videos with no disclaimers and promoting the purchase of stocks, the analyzed TikTok videos also had a high percentage (65%) of content showing guaranteed returns, while 50% encouraged viewers to invest a portion of their income.
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