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(From the Financial Literacy Blog) – It’s likely that within the past few years, you’ve been hearing more and more about TikTok. It’s an increasingly popular social networking service with a focus on video-sharing. TikTok has become the place to go for new dances, music, viral recipes—and now, financial education! If you’re looking for quick, digestible personal finance advice, you should consider downloading the app. Here are some advantages of using TikTok to become financially savvy:
Relatability
It’s likely that the person offering financial education content on TikTok is a Millennial or representative of Generation Z. According to this report, 80% of all TikTok-users are between the ages of 16 and 34. If you’re a young person seeking finance advice, learning from people who aren’t close in age to you can be challenging. The information they share might seem preachy or judgmental, or irrelevant to where you are in life. If you’re young, are you that eager to learn about the penalties you might pay on your 401(k) if you withdraw your funds earlier than age 59 ½? Younger people are facing other challenges, such as paying off student debt or looking for a home in a competitive market. Not only that, many are doing it on a shoestring budget. Younger financial experts in similar stages of life may be able to provide more relevant and impactful education.
Accessibility
Having financial education content available on TikTok removes a barrier in the learning process. If you’re already on TikTok, you don’t really need to go out of your way to find content. TikTok also uses an algorithm that offers highly personalized content suggestions based on your previous likes, swipes, and shares. For example, if you’ve shown interest in videos about reducing your student loan payments, TikTok will suggest other videos that may offer insight on reducing student debt. The more you use the app, the more relevant the information will become over time.
Digestibility
One of the biggest benefits of using TikTok for financial education is the ability to absorb information in short, easily digestible videos. According to a study by Microsoft, the average attention span is eight seconds—down from twelve seconds in 2000. With many having access to smartphones, tablets, laptops, and other devices, people can absorb more content than ever before. Not only that, but people can access content instantaneously. If the idea of sitting through an hour-long presentation or a full-day seminar on finance sounds unappealing, TikTok’s short-form videos may be a better learning experience for you. TikTok only allows videos to be three minutes long at most, meaning the quick and digestible information is more likely to hold your attention. They’re also less likely to become too overwhelming. Long-form presentations or seminars can sometimes get too into the weeds, where TikTok videos need to quickly and simply summarize the important takeaways.
If you’re looking for bite-sized financial education that packs a punch, TikTok may be the app for you! Maine Credit Unions also now has an account at @mainecreditunions, where you’ll be able to find regular financial literacy content. Be sure to give us a follow!