Nearly 80% of young adults say they turn to social media for financial advice. But perhaps they should find another source.
A new report by Social Capital Markets found that 71% of the financial advice consumed by Gen Z and Millennials is misleading, and only 13% of influencers had the relevant qualifications and credentials to advise on finance matters. This past summer in the U.K., for example, several social media influencers were charged with promoting financial schemes to millions of followers.
The study analyzed 2,470 TikTok, YouTube, and Instagram videos and relevant hashtags (#StockTok, #Investing, and #Stocktips), looking for "misleading" posts that have key items, including no disclaimer, encouraging viewers to invest in specific assets, and implying guaranteed returns.
Of the videos analyzed, 83% lacked disclaimers and offered "a one-sided view of financial decisions," per the report. Meanwhile, 57% of stock content implied guaranteed returns.
Social Capital Markets
TikTok, Instagram, and YouTube Had the Most Misleading Posts
According to the report, TikTok was named the No. 1 riskiest platform, with 91% of videos lacking disclaimers and 70% encouraging stock purchases.
Instagram was found to be the second most problematic, with 88% of financial videos lacking disclaimers and 65% encouraging specific stock investments.
YouTube came in as the third platform with the most misleading posts, noted for being "aggressive in pushing specific stock picks," with 76% of posts failing to include a disclaimer and 75% promoting particular investments.
Why Was TikTok Deemed the Riskiest Platform for Financial Advice?
In addition to the high number of videos that lacked disclaimers and encouraged stock purchases, the TikTok videos analyzed also had a high percentage (65%) of content that implied guaranteed returns, while 50% encouraged viewers to invest a particular proportion of their income.
Are you too busy to exercise during the week? Scientists have good news: weekend workouts may be just as effective at protecting your brain health as regular exercise Monday through Friday.
The study, which tracked over 10,000 adults for 16 years, found that “weekend warriors” who exercised just once or twice per week had a 25% lower risk of developing mild dementia compared to those who didn’t exercise at all. This risk reduction was similar to – and even slightly better than – the 11% lower risk seen in people who exercised three or more times per week.
This discovery could be particularly meaningful for busy working adults who struggle to find time for regular exercise. The research suggests that cramming your weekly physical activity into the weekend could still provide significant protection for your brain as you age.
“To the best of our knowledge, the present study is the first prospective cohort study to show that the weekend warrior physical activity pattern and the regularly active physical activity pattern are associated with similar reductions in the risk of mild dementia,” the study authors, led by Dr. Gary O’Donovan from the University of the Andes, in a media release.
The study, published in the British Journal of Sports Medicine, is the first of its kind in Latin America to examine how exercise patterns affect dementia risk. While previous research has shown that physical activity can help prevent cognitive decline, most studies have been conducted in wealthy nations in Europe and North America.
The researchers followed 10,033 adults in Mexico City with an average age of 51. At the start of the study, participants were asked about their exercise habits and divided into three groups: those who didn’t exercise, “weekend warriors” who exercised once or twice weekly, and regularly active people who exercised three or more times weekly.
After 16 years, participants took a standard cognitive test called the Mini Mental State Examination (MMSE) to assess their mental function. The results showed that both weekend warriors and regular exercisers performed better on the cognitive tests compared to non-exercisers.
Perhaps most striking was the finding that if all middle-aged adults exercised at least once or twice per week, about 13% of mild dementia cases might be prevented. In Mexico alone, where dementia costs nearly $3.8 billion annually, this could translate to savings of about $378 million per year.
The findings are particularly relevant given that dementia cases are expected to surge from 57 million globally in 2019 to 153 million by 2050. In Latin America, the number of people living with dementia is predicted to triple by 2050.