Time and time again, we’ve heard TikTok being referred to as the ‘new Google’ – with the popular video app being used my many as brand new form of knowledge, seeing it’s users searching for tutorials, tips, tricks and hacks.

Some of these can be harmless, but as with most things on social media, it’s always important to stay cautious about what advice you’re taking – especially if you’re not sure if the person is qualified expert in that field.

Whilst many use TikTok for the likes of recipes, book recommendations and make up tutorials – influencers and experts giving financial advice, and providing money saving ‘hacks’ has risen in popularity, but will their advice really help you?

Moneyboat has partnered with financial expert Laura Rettie, Editor-in-Chief at Finance.co.uk – to give her expert opinion on some of the most popular TikTok ‘saving hacks’ and personal finance advice.

50/30/20 Method

Outlined in this video, the 50/30/20 saving method is one of the most popular personal finance tips discussed on the app – and whilst many people swear by it, it also has it’s disadvantages and doesn’t take many people’s financial, living and personal situations into consideration.

Editor-in-Chief of Finance.co.uk, Laura Rettie said: “The 50/30/20 budgeting rule suggests splitting your income into three, using 50% for essentials like rent, utility bills, food and transportation, 30% for non-essentials such as holidays, clothes and TV subscriptions, and either save the remaining 20% or use it to pay off any debts you may have.

“The problem with this method is that it doesn’t consider where you live, if you have children, how much debt you’ve got, or if you’ve got a joint income with a partner. All of these things will have a big impact on the amount you need to spend on essentials. For some, 50% might not be enough, while for others, it could be too much. The 50/30/20 approach is too rigid for me personally – I believe budgeting should fit your unique circumstances.”

Cash Stuffing

Cash stuffing is another hugely popular saving and money management method on TikTok – with many users even investing in special, personalized ‘wallet books’ for the method, even having more than one for essential budgeting, and leisure budgeting, as shown in this video.

The idea is to have a wallet or envelope for each expense, and placing the cash amount for it in the envelope. This is primarily used for essentials, such as bills and food shops but can also be used for the likes of beauty appointments, going out or take aways.

Editor-in-Chief of Finance.co.uk, Laura Rettie said: “Cash stuffing helps to give you a visual representation of your budget, making it easier for some to track spending. It can help to prevent overspending and encourage conscious financial choices.

“But frequent trips back and forth to a cash machine can be inconvenient and risky if you lose the envelopes or they’re stolen. It’s far less flexible than digital budgeting, and so many transactions are done digitally these days. For example, most of your utility providers will require you to pay via direct debit, so sadly, although it might seem like a simple idea, in reality, the cash stuffing method simply isn’t practical in our digital world.”

Calendar Savings Challenges:

There are plenty of ‘saving challenges’ on TiKTok – however a recent one includes using a monthly calendar and marking which days you did spend and didn’t. This is commonly done in two ways – either marking off if you spent money or didn’t at the end of each day like in this video, or planning in advance what days you will and won’t spend at the start of the month.

Editor-in-Chief of Finance.co.uk, Laura Rettie said: “Using a calendar can help to visualise your spending habits, which for some is a motivating way to help keep you on track financially. By marking your spending activities daily, you can become more aware of your financial habits.

“Although this method can help you to spot your spending triggers, it lacks detailed insights into where your money is going or how much you’re saving. It’s not really a budgeting or saving method – I’d better describe it as a log to track your spending. There are far better free apps that can do this for you, which provide much more detailed information.”

Stocks and Shares ISA

When looking for advice on saving money and personal finance, there are a lot of TikToks around investing and stocks. One of the main pieces of advice out there – like in this TikTok, is to use a Stocks and Shares ISA. The ISA allows you to invest in the stock market tax-free, alongside not getting taxed on any growth ect.

Editor-in-Chief of Finance.co.uk, Laura Rettie said: “A Stocks and Shares ISA can be a valuable tool for long-term investors who have some level of experience in stocks and shares looking to take advantage of the tax benefits – however, it’s essential to consider the associated risks. You could lose some or all of your invested capital, unlike cash ISAs, which offer a guaranteed return. The performance of investments in a Stocks and Shares ISA depends on market conditions.

“Some providers charge fees for managing your accounts, which can eat into your returns, and unlike a savings account where you can access your money at any time, there may be restrictions on when you can withdraw your funds.

“Although the video makes it seem easy to find £50 each month, it can be difficult for some, and if you have debts, it’s important to pay off those before considering anything else. If you’d like to explore a Stocks and Shares ISA as an option, seek the advice of an independent financial advisor.”

Transferring The Last Three Digits Daily

As demonstrated in this video, another popular savings method that has been demonstrated on the app, is the act of transferring the last three digits of your bank account into your savings at the end of every day, for example; if you had £768.35 in your account, you would transfer £8.35 into your savings. Whilst this may be a simple and seemingly achievable way of saving, there are multiple factors is doesn’t take into account.

Editor-in-Chief of Finance.co.uk, Laura Rettie said: “This saving method can encourage forming the habit of saving. While the individual transfers may seem small, they can accumulate into significant savings over time, which can be psychologically motivating.

“However, this method doesn’t consider your financial goals, income or expenses. You may not be saving enough, or you could be saving too much, not leaving enough for your essential needs. This method doesn’t help you budget or control your spending and should only be used as a way to develop the habit of saving money.”