Kids Are Getting Financial Advice From TikTok. Should We Be Worried?

Parents often focus on their children’s emotional and physical health, but what about their financial well-being?

Since money can significantly impact mental health and overall quality of life, developing a healthy relationship with money is crucial. This includes knowing where to seek financial advice.

Money dysmorphia may not be an actual diagnosis according to The New York Times. But it’s prevalent among Gen Z and millennials. The term refers to a distorted view of one’s financial situation, leading to excessive anxiety, spending paralysis and feelings of inadequacy when comparing one’s lifestyle to others on social media. So where are young people turning for guidance to get a better handle on their finances?

Why are kids turning to TikTok for financial advice?

With budgeting and financial responsibility generally not taught in schools, it’s no surprise that Gen Z (born 1997-2012) and Gen Alpha (2013+)—who spend so much time online—turn to social platforms like TikTok or YouTube for advice. However, just as social media fosters shallow connections, the advice from these self-proclaimed gurus often lacks substance. Many so-called financial experts are little more than untrained influencers looking to gain followers and make a quick buck in the process.

That said, not all financial influencers—or “finfluencers”—offer shady advice. Take Humphrey Yang, for example, whom Fortune calls "Gen Z's finfluencer version of Warren Buffett."

A former Merrill Lynch financial advisor, Yang shares insights on topics like the biggest money wasters, renting versus owning and how to invest on his TikTok and YouTube channel.

Then there’s Tori Dunlop, author of Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love. Dunlop, known for her advice on saving your first $100,000—an impressive feat she accomplished at 25—offers guidance on a variety of topics, from investing strategies to financial self-care.

These finfluencers have amassed huge followings on social media. Many followers have expressed their gratitude for the financial knowledge they’ve gained. Some even claim the advice has changed their lives.

Why influencers aren’t the best advisors

But kids need to understand that a large following is not a reliable indicator of expertise.  Experienced scammers are skilled at recycling information from other sources or using AI to answer money questions, falsely positioning themselves as experts. As with many skills in the digital age, learning financial literacy requires developing media literacy.

Jose Pinguelo, who began his banking career in 1982 and has been a financial advisor since 1993, believes it’s fine to learn basic concepts from the internet. However, when it comes to more in-depth advice, he recommends seeking professional guidance. “I always tell people that I love driving but I know absolutely nothing about cars. If my car breaks down. I have no clue how to fix it,” he says, “so I take it to a mechanic.”

Pinguelo emphasizes the importance of financial advisors being transparent about their qualifications and intentions. He suggests people regard “finfluencers” with caution, asking   themselves, “Are they teaching you about something, or are they trying to sell you something?”

If what’s being sold sounds too good to be true, it likely is. Pinguelo advocates for financial advisors to “under promise and over deliver,” ensuring their clients’ trust is earned through realistic expectations.

A smart approach to teaching kids about money

When it comes to teaching kids about money, Pinguelo recommends starting early. He suggests using coins to teach math and gradually introducing the concept of money’s value.

When asked whether parents should provide an allowance, he says, “I would recommend that parents give their children money for chores. They need to understand that if they don’t work, they’re not going to get paid.” The next step is to teach them the difference between saving and spending, and how to manage both.

This approach reminds me of an experience I had a couple of summers ago. While at a candy store with my children, I promised to buy them each a treat. But when they chose a commercially made, widely available product, I changed my mind.

I asked them to remember the price and be patient while we checked if we could find it elsewhere. After a quick five-minute walk to a nearby grocery store, we found the same candy, in the same size package, for $5 less. My kids were amazed.

More importantly, they learned the value of money—especially when I gave them the $5 savings to put in their piggy banks. Even now, whenever I mention wanting to comparison-shop, they remind me of that experience in the candy store.

As children get older, Pinguelo advises giving them a more active role in managing their finances—starting with opening a bank account. Learning how to use bank machines and to communicate with tellers provides invaluable experience that will serve them well in the future.

But how open should parents be about money when talking to their kids? Pinguelo recommends being transparent about your family’s budget, even if this means acknowledging poor financial decisions. He adds, “Of course, you don’t need to provide all the details.”

Helping kids navigate financial anxiety

No matter how much you prepare your kids, teens or young adults, they may still experience “money dysmorphia” and unnecessarily stress over finances, even if they’re doing well. “In my experience with my clientele,” Pinguelo says, “those who worry the most tend to need to worry the least.”

He suggests reassuring your kids that you’re there to support them and answer questions—especially when they get their first credit card—but also giving them space to make their own decisions, even if that means watching them make mistakes. The hope, of course, is that they will learn from those experiences.

Money is a huge stressor in people’s lives, and the earlier kids learn not to compare themselves to others, the better off they’ll be. But with TikTok and other platforms offering financial advice, parents might be worried.

While social media can provide some basic financial knowledge, it’s crucial to balance it with real-world guidance from professionals—and most importantly, from the example parents set at home. Even if your family’s financial history hasn’t been perfect, it’s never too late to learn together.

By fostering open communication and helping kids understand money in a thoughtful, measured way, you can prepare them to make smart financial decisions, even in a world full of flashy online advice. The key isn’t to shelter them from outside influences but to equip them with the skills to navigate those influences critically and make informed choices.