TikTok can be a great place to find dinner ideas, laugh at cat videos or learn how to fold a fitted sheet. Even though its use is banned on Defense Department devices, and troops are warned to be cautious when using it on their personal phones and computers, the military is using TikTok.
But when it comes to financial advice, TikTok trends should be approached with extreme caution. While the app is full of energetic creators who present fun content, the financial guidance circulating on the platform is often incomplete, misleading or flat-out wrong. Remember that just because something goes viral doesn't mean it's valid. Financial advice is highly individual, and what works for one person may be entirely wrong for someone else.
Entertainment, Not Education
At its core, TikTok is made for entertainment, not education. The most engaging content is simple and shareable. But the realities of personal finance aren't simple. They're often complex and nuanced. Distilling a financial strategy into 60 seconds means skipping critical context, such as eligibility requirements, tax implications, long-term tradeoffs or relevant laws and regulations. For example, a video might promote the idea of paying for a house with a Roth IRA -- without explaining the many things you need to know and do for this strategy to be legal and make financial sense.
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No qualifications exist to be a TikTok creator, and creators aren't held accountable for the outcomes of their content. Heck, they may not fully understand the products they're promoting, or they may misrepresent them -- intentionally or otherwise. Even well-meaning creators can cause harm if they provide advice that doesn't take into account the full financial picture.
Another common issue with TikTok financial trends is the overemphasis on hacks or shortcuts. Viral videos often focus on strategies that promise fast results with little effort, such as using manufactured spending to game credit-card rewards or exploiting loopholes in tax rules. These tactics can be risky, may violate terms of service or the law, and are rarely part of a sound, long-term financial plan. They also create a false impression that personal finance is about clever tricks rather than discipline, planning and consistent decision-making. In reality, most financial success comes from doing the boring stuff consistently: saving a portion of your income, avoiding high-interest debt, investing in diversified funds and planning for major expenses.
TikTok videos also tend to assume a narrow audience and rarely account for different life stages, goals or obligations. Advice that might be reasonable for a 22-year-old with no dependents could be disastrous for a 35-year-old with kids, a mortgage and irregular income. For example, promoting a 100% stock portfolio to maximize returns might be suitable for someone with a long time horizon and high-risk tolerance, but not for someone approaching retirement or paying for college in the next few years. Similarly, telling everyone to invest in a specific type of real estate or cryptocurrency ignores the individual factors that should drive those decisions, including liquidity needs, time commitment, tax bracket and local market conditions.
The Military Has Unique Concerns and Opportunities
Also remember that what works in civilian finance doesn't always apply to military families. Many TikTok finance trends assume a traditional civilian financial life that might include geographic stability, certain employer benefits or the ability to control your career. Military families may not be living in these situations.
For example, most experts agree that you should avoid life insurance through your employer because it's "not portable." While often true in the civilian world, Servicemembers' Group Life Insurance has some significant differences from civilian life insurance, changing the analysis. Or a video might encourage buying a home without addressing the unique costs of permanent change-of-station (PCS) moves, variable Basic Allowance for Housing (BAH) rates or the risk of becoming an unintentional landlord.
On the flip side, the military community has resources and options that most TikTok influencers wouldn't necessarily know about. Looking for content on shipping a car? A TikTok creator might not know that you could be eligible for an allowance from the DoD to ship your second vehicle.
Even military-specific content doesn't have time to be thorough. For example, a TikTok video might explain how to go to college "for free" by using the Post-9/11 GI Bill, but not mention how entitlement limits work, how Yellow Ribbon eligibility varies by school, or the financial tradeoffs of transferring benefits to a spouse or child. Without these details, families may make choices that cost them thousands of dollars or reduce future flexibility.
What You See Gets Skewed
TikTok trends also tend to ignore regulatory changes or time-sensitive considerations. What was good advice in 2022 might be completely outdated after a new tax law or Department of Veterans Affairs policy change. Because TikTok videos don't come with disclaimers or expiration dates, people may follow guidance that no longer applies.
In addition, the algorithms behind TikTok are designed to show you more of what you interact with, which can create an echo chamber. Once you start watching financial advice content, the app will likely show you more of the same, even if the information is inaccurate or misleading. This can reinforce bad advice and give it an air of legitimacy through repetition.
It's OK to enjoy financial content on TikTok. It can be a great starting point for learning new terminology, discovering tools you didn't know existed or finding motivation to take control of your money. But it should never be your only source of information, because it's built for engagement, not accuracy.
Financial decisions have long-term consequences, and they deserve careful research, thoughtful planning and individualized advice from qualified professionals who understand your specific situation. It is best used as a springboard for deeper investigation, not as a road map for your financial life. Whether you're active duty, a veteran or part of a military family navigating unique benefits and challenges, it's always worth consulting a reputable source and making decisions based on facts, not trends.
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