Those TikTok tips for quick holiday money are risky. How to recognize bad advice
As a financial coach and therapist, I am quite active on social media. My feed is full of personal finance “hacks” to help you make money fast for this holiday period. Some of the advice is good, but some tips can be risky or in some cases illegal.
I’ve seen Instagram reels encourage followers to blindly invest in certain stocks. And earlier this year I saw TikTok footage about this Chase Bank “hack” to get free money. Chase Bank suffered a system-wide outage that allowed people to write counterfeit checks to themselves, deposit them through ATMs and withdraw the money immediately. That wasn’t a “money hack.” It was bad advice that promoted check fraud, a crime.
The worst money advice on social media isn’t that extreme, but some hacks are scam that are not worth the time or investment. it can still be dangerous and a financial setback. Before you start trusting money advice on social media from influencers – not experts – in the hope of having extra money for it holiday salesStop. I’m here to help you discover the ‘tips’ that can quickly turn your vacation sour.
Read more: Money anxiety? Here’s the expert advice I followed to be smart with my finances
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 for the Chase glitch would have turned up news articles explaining that this “cash hack” was actually check fraud.
Look for references
TikTok and Instagram can be useful, but they are mainly sources of entertainment. Financial advice can be redundant and boring, which is why social media influencers tend to ‘make it interesting’ by offering risky advice.
I recommend looking for a certified financial planner, financial coach, accountant or chartered accountant. You may choose to follow them on social media rather than influencers to ensure that the advice you receive is not risky.
Run from “free money”
If something feels too good to be true, it probably is. An influencer who shares a way to make “free money” is likely trying to sell you an investment opportunity or a multi-level marketing plan that may encourage you to try something illegal.
The legitimate ways you can Making money is generally slow: earning interest on your savings, growing your 401(k), or earning passive income.
Read more: Beware of this cunning bank fraud
Think about the risks, not just the rewards
As a financial therapist, I have seen how stress affects my clients’ decisions. When you’re faced with debt or piles of bills you can’t pay, you’re more 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 benefits, risks, and even questions you have before taking your next step. Then research the answers to these questions or make an appointment with a recognized financial expert for more information.
There is no shortcut to quick money
There’s no secret way to get rich overnight, but there are proven steps you can follow. Live below your means, build an emergency fund, manage your debt well and make good investments that you have confidence in. While not all financial advice on social media is bad, you should remain cautious when following money advice online.
If you’re looking for some quick cash to spend more on the holidays, consider celebrating the season differently and putting less strain on your wallet. Consider inexpensive gifts that are still meaningful or play a holiday gift game to buy gifts for one or two people with a set spending limit.
