Financial advice is everywhere on TikTok. It is fast, flashy, and often sounds too good to be true. That’s because a lot of it is. According to a 2024 Talker study, more than half of Americans now look to TikTok for money tips.
But just because it goes viral doesn’t mean it works in real life.
“Never Pay Off Your House”
Some TikTok influencers say you should never pay off your house. Their pitch? Use a HELOC, a home equity line of credit, to pull equity from your house and use that money to buy another property. In theory, you collect rent from the new place, pay off both mortgages, and walk away with extra income.
Cotton Bro / Pexels / HELOC interest rates can rise, tenants can flake, and home values don’t always go up. Plus, you are stuck juggling multiple loans.
A better move? Pay down your mortgage. Owning your home outright gives you real financial security. You cut out interest, reduce your monthly costs, and get peace of mind that no landlord or market can take away.
Then, if you want to invest, do it with extra cash, not borrowed money tied to your roof.
“Write Off a Private Chef as a Business Expense”
One TikTok creator claimed you can hire a private chef and write it off as a business expense, as long as you call it a “business dinner” and invite friends or clients over. Sounds slick, right? Except it is not how tax law works.
Just because you are eating with someone doesn’t make it a business event. The IRS isn’t fooled by fancy titles or creative accounting. If your dinner is mostly for personal reasons, it doesn’t qualify.
Instead of gaming the system, talk to a tax pro. They will help you find real deductions you actually qualify for. You can still write off legit business meals, travel, and equipment, just not your Tuesday night salmon with your cousin.
“Use Your Allowance to Buy Real Estate”
Another wild TikTok gem? Teens should use their allowance to invest in real estate. One influencer claimed a 15-year-old getting $300 a month should invest that money into a property and only spend the cash flow it earns, say, $30 per month.
This sounds more like a math puzzle than actual advice. Real estate costs way more than a few months’ allowance. And even if a kid could buy property, they legally can’t own it without a guardian.
Karolina / Pexels / A smarter idea would be to teach teens to save and invest in things they can actually manage, like a high-yield savings account or a teen-friendly investment platform.
Building financial skills early matters, but it starts with smart, realistic steps, not skipping to landlording at 15.
“Don’t Save, Just Invest It All”
One of the louder messages on FinTok is that saving money is a waste. These influencers say you should invest everything and that cash sitting in your savings account is losing value due to inflation.
Sure, inflation eats into savings. But dumping all your money into the market isn’t the solution. You still need an emergency fund. If all your money is tied up in stocks or crypto, pulling it out could cost you more than you saved.
Keep at least three to six months of expenses in an easy-to-access account. Then, invest what’s left over in a way that matches your goals.
“Fix Your Credit by Getting Tons of Cards”
Some TikTokers claim you can boost your credit score by opening multiple credit cards and paying them all on time. More cards = more credit = better score, the claim.
If you want better credit, start simple. Keep your balances low, pay your bills on time, and don’t open new accounts unless you actually need them. Over time, your score will climb without the chaos.
