Millennial parents, if you get your financial advice on social media here are 5 things to check to avoid 'misinformation' (and it's worth teaching your kids too)

With living costs still high, it's no wonder that some parents need some advice on managing their family budget as effectively as possible. Knowing how to save money is key when you have a family, so you can plan your spending and try and save for your child's future. But with lots of financial advice containing confusing jargon, it can be hard to know where to turn to for help.

But for those parents seeking advice on how to manage their money, it's important to know where you can get accurate and reliable information, and where to avoid looking for tips. While older generations had no option but to turn to a professional for financial advice, younger generations are increasingly turning to social media for help. But sadly this information can often be unreliable, which could lead you to make money mistakes that could have dire consequences for your family. According to a report by stock research company WallStreetZen, almost two-thirds of stock videos on TikTok are misleading, and 95 per cent lack the relevant disclaimers. Furthermore, the research also found that a worryingly low percentage (0.8 per cent) of TikTokers actually have the relevant qualifications to be doling out the advice.

If you want to make sure you're listening to reliable advice (and want to teach your children how to do the same, so that they grow into financially confident and literate adults), then news analysis website, The Conversation, has shared five tips on how you can follow TikTok's advice to fact check your feed.

How to fact-check money advice in your social media feed

If you want to check the authenticity of financial advice on social media (or teach your teen how to check for themselves), then there are five questions to ask yourself before you act on the advice.

1. Who is this person? Check their profile and see if it says that they are a regulated financial advisor
2. What are they saying? If it sounds too good to be true, or they are making promises about massive returns on investment, then you should definitely be sceptical
3. When was this posted? Check the time stamp on the social media post to see how recently it was posted - advice shared in older videos may be out of date
4. Where are they getting their information? Reliable content creators will explain exactly where they are getting the information they are sharing, and it should be a source where you can go and find out more information yourself
5. Why are they sharing this information? If the advice is flagged as an ad or asks you to sign up to something in order to get the full picture, then it's wise to be wary of its authenticity

It's also worth paying attention to where the person is posting from, as financial rules may be different in other countries. Another point to remember about video content shared on social media platforms is that they are often limited by time, so won't always be able to provide all the information, disclaimers, or warnings necessary to give you well-rounded advice.

But that's not to say you can't trust any financial advice you find on social media. Consumer champion Martin Lewis is active on social media and can be relied on to provide accurate information, as can his website, MoneySavingExpert. Government-backed MoneyHelper is also active on social media, so check for their verified profiles on your social media platform of choice. You can find links to their social profiles by scrolling down to the bottom of their website home pages, so you know you are following the official profiles.

In other news, millennials are set to become the richest generation according to a new report, and think that their approach to parenting is better than previous generations. We've also revealed the parenting rules millennials are following in 2024.