Social media platforms are more than just sources of entertainment – platforms such as TikTok now have content creators giving “advice” on a wide range of topics, from health care to finance.
One example of this is the rise of the hashtag #FinTok on TikTok. A survey conducted by market research company Prolific found that 79 per cent of millennials and Gen Z receive financial advice from social media.
However, should we be relying on social media for something as personal and important as our finances? Are there any potential pitfalls that we need to watch out for?
TikTok’s role in driving financial literacy
Social media platforms such as TikTok have emerged as tools for raising awareness about the importance of personal finance among a generation that may have, otherwise, found such topics too dry or inaccessible.
In bite-sized, engaging videos, creators attempt to break down complex financial concepts, offer practical budgeting tips and demystify investing.
Such content often transcends geographical borders, allowing people to interact with and get advice from creators worldwide.
Studies have found that social media can help normalise “money talk” and imbue people with a sense of empowerment.
But is that enough to communicate the complexities of investing and support informed financial decision-making?
TikTok may have been the catalyst that sparked your interest in personal finance – but you should understand who is offering advice, what qualifications they have and, therefore, the level to which they are able to deliver for you.
Anyone can be a financial influencer
Finance influencers, or "finfluencers", can connect with consumers and build communities of like-minded people.
However, while you must be licensed to give professional financial advice in the UAE, not all financial influencers are certified.
That means financial information on social media may not always be accurate.
But when we are scrolling through TikTok, most of us do not bother to look up the qualifications of these influencers – only 31 per cent of millennials and Gen Z regularly check whether financial influencers are certified, the Pacific survey found.
Lack of personalisation
Social media is designed to cater to a broad and diverse audience. While such content appeals to a wide audience, it often fails to consider your individual financial situation and goals.
Even if there are some basic personal finance and investing principles, there is no one-size-fits-all approach when it comes to executing a financial plan.
Oversimplification of financial concepts
Personal finance is a multifaceted field, encompassing various aspects such as budgeting, investing, retirement planning and more.
To create digestible social media content, creators often condense complex financial concepts into bite-sized chunks. Such oversimplification might lead to misunderstanding and incomplete financial knowledge.
Confirmation bias
Social media platforms rely heavily on their algorithms to push content based on attention grab. Hence, people are often exposed to content that aligns with their existing beliefs and biases.
For instance, if you are constantly fed content around stock trading, this may reinforce your view that short-term profit-taking is the best way to build wealth.
But there are strong merits to long-term investing; staying within a social media echo chamber means missing out on knowledge and opportunities to explore sound financial strategies that may suit your risk profile and lifestyle.
To create digestible social media content, creators often condense complex financial concepts into bite-sized chunks
Joseph El Am,
general manager at StashAway Mena
Surround yourself with qualified financial support
If social media made you pay attention to the fact that you must manage your money better and put in some effort, that is great!
But from here on, we suggest relying on reputable channels (even on social media) that will help you turn this newfound interest into a plan that works for you.
Digital wealth management platforms have also emerged as a promising alternative to traditional ways of building wealth.
Unlike the traditional wealth management industry, where advice is often skewed towards benefitting the bank, such platforms can operate independent of financial institutions.
Remember, your financial journey is an individual quest that evolves and grows.
At every stage of your journey, you have a wealth of information available at your fingertips – the key lies in curating a balanced financial “diet” that incorporates trending ideas from content creators and knowledge from verified sources.
Joseph El Am is general manager of StashAway Mena
UAE currency: the story behind the money in your pockets
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
More on animal trafficking
UAE currency: the story behind the money in your pockets
Australia World Cup squad
Aaron Finch (capt), Usman Khawaja, David Warner, Steve Smith, Shaun Marsh, Glenn Maxwell, Marcus Stoinis, Alex Carey, Pat Cummins, Mitchell Starc, Jhye Richardson, Nathan Coulter-Nile, Jason Behrendorff, Nathan Lyon, Adam Zampa
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
The years Ramadan fell in May
The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The specs: 2018 Chevrolet Equinox
Price, base / as tested: Dh76,900 / Dh110,900
Engine: 2.0L, turbocharged in-line four-cylinder
Gearbox: Nine-speed automatic
Power: 252hp @ 5,500rpm
Torque: Torque: 352Nm @ 2,500rpm
Fuel economy, combined: 8.5L / 100km
AIR
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
Mohammed bin Zayed Majlis
Zayed Sustainability Prize
Killing of Qassem Suleimani
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
What is a black hole?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
More coverage from the Future Forum
UAE currency: the story behind the money in your pockets
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
The five pillars of Islam
Zayed Sustainability Prize
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Day 2, Abu Dhabi Test: At a glance
Moment of the day Dinesh Chandimal has inherited a challenging job, after being made Sri Lanka’s Test captain. He responded in perfect fashion, with an easy-natured century against Pakistan. He brought up three figures with a majestic cover drive, which he just stood and admired.
Stat of the day – 33 It took 33 balls for Dilruwan Perera to get off the mark. His time on zero was eventful enough. The Sri Lankan No 7 was given out LBW twice, but managed to have both decisions overturned on review. The TV replays showed both times that he had inside edged the ball onto his pad.
The verdict In the two previous times these two sides have met in Abu Dhabi, the Tests have been drawn. The docile nature of proceedings so far makes that the likely outcome again this time, but both sides will be harbouring thoughts that they can force their way into a winning position.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
BACK%20TO%20ALEXANDRIA
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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TOUCH RULES
Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.
Teams can make as many substitutions as they want during the 40 minute matches.
Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.
A touch is any contact between the player with the ball and a defender, and must be with minimum force.
After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.
At the roll-ball, the defenders have to retreat a minimum of five metres.
A touchdown is scored when an attacking player places the ball on or over the score-line.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
The five pillars of Islam
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
