While social media platforms like TikTok, Instagram and YouTube may be great for keeping pace with the latest food and fashion trends, they’re not the best place to find trustworthy financial advice.
So it was something of a breakthrough for Myriam-Karina Gad when she took matters into her own hands regarding her exorbitant home-heating bill — and quickly became a social media money maven.
For years, the certified public accountant and budget analyst had been paying ridiculous rates to heat her Montreal condo — a typical money-sucker for residents of Quebec, where the winters are glacial and Hydro-Quebec is the only provider.
Last winter, however, Gad discovered she could reduce her heating bill by keeping her bedroom door closed during the day — and letting it stay cold — before opening it just before bedtime so that the warm air would seep in from the rest of her Montreal condo.
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“I think I found a hack for this!” she exclaimed gleefully on TikTok, where the video of her discovery amassed 16,000 views.
It saved her $22 dollars per month, which may seem like chump change to some, but in the world of millennial finances every dollar saved is a victory.
Since February, she’s been posting videos to TikTok under the handle “mimismoneymoves,” an account that offers small life-hacks to help her more than 10,500 followers save money.
Her videos include topics ranging from how to start saving for a down payment, how to prioritize RRSP contributions versus paying off student debt — even hacks on decorating an apartment on a budget.
Part of her inspiration for starting the account, she says, was to offer an alternative to the proliferation of abysmal financial advice swirling around social media.
Just last week, the Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada (IIROC) announced new regulations for cryptocurrency advertisements on social media to clamp down on misinformation and fraud.
But even those who offer perfectly legal financial advice often miss the mark, Gad says.
“Lots of creators boast about their huge stock portfolios, and all the money they made by doing this one thing,” she said.
“This just isn’t attainable or accessible advice.”
Instead, Gad likes to focus on cost-saving strategies that apply to most peoples’ lives — whether it’s grocery shopping, buying clothes, or repurposing old items. All these seemingly colloquial activities can save consumers lots of money in the long run.
Sam Lichtman, a certified financial planner from Saskatchewan, opened a TikTok account last year for many of the same reasons.
Rather than offering financial advice, such as tips on what stocks to buy, he educates his younger audience on basic financial concepts such as mutual funds and RRSPs.
“Financial advice is telling people, ‘You should go out and do this,’ whereas financial literacy is telling people, ‘Hey, this is how this works,’ and I try to make a distinction with that,” he said.
He recently made a video on what to do if you’ve maxed out your Tax-Free Savings Account and are looking for other places to store your money.
“I don’t like saying things like, ‘Hey, go invest in a nonregistered account and you’ll find great growth.’ It’s more like, ‘These are your options after you max out your TFSA.’ That’s better than telling people exactly what to do, I think.”
The growth of financial advice on social media suggests that younger audiences will be taking their cues from platforms like TikTok for a long time to come. And that’s fine, says Lichtman, but they have to watch for red flags.
“Avoid anyone who suggests that something’s guaranteed. If they say, ‘Do this and you will be financially rich,’ they’re probably wrong,” he said.
Most importantly, look at the accounts’ credentials, says Gad.
“Anyone off the street can make an account and offer financial advice. You want to know that they’re a CFP or CPA, that they’ve done the work that makes them qualified to give you advice,” she said.
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