Shock fallout of social media money trends

1 month ago 46

This social media user tested money candles to see if they were for real, spending over $500 on a box of them, with some surprising results. Source: TikTok

From lighting money candles for cash to manifesting a Mercedes, the wildest financial trends have been exposed as experts warn of the shock impact they’re having on Aussies.

Worrying signs are emerging that at least two generations are now being severely hammered by wacky financial advice thanks to unqualified finfluencers running rampant on social media.

While older generations may slog away at boring budgets and faithfully add to savings for compound interest gains to build home loan deposits, experts warn Gens Z and Alpha could be putting their faith in supernatural and wacky social media fads – digital witchcraft that may well be the equivalent of snake oil sales tactics for coming generations.

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He pulled two dollars out of one candle after digging into it, which had mixed responses from those seeing his expose on the fad. Source: TikTok

Among the 15 emerging trends raising eyebrows among financial analysts is the viral belief that you can “speak wealth into existence” using affirmations like “money is coming,” “new home is coming,” or even “I want a Mercedes.” These kinds of posts have collectively garnered over 25 million views, according to BestBrokers data.

Another popular trend involves lighting so-called “get rich money candles” with the intention of attracting financial abundance – some of these videos have received more than half a million likes.

While advocates see these practices as motivational or symbolic, some experts caution that they may contribute to what they describe as a “financial fantasyland,” potentially encouraging unrealistic expectations about wealth creation. In response, some TikTok users have started sharing their own investigations into how these candles work, aiming to help others make informed decisions about whether these trends live up to the hype.

Social media finfluencers have grown in such prominence that Australia’s peak financial services body ASIC has banded together with eight other regulators to crack down on their unqualified financial advice and taking legal action – even to the point of bankruptcy.

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Gold Coast finance influencer Tyson Scholz in a file shot living large in Dubai. ASIC pursued him over giving financial advice without a relevant licence.

ASIC Commissioner Alan Kirkland said they had “joined forces to disrupt unlawful finfluencer activity” with their most recent move seeing 18 social media spruikers warned over suspicions they were unlawfully pushing high-risk financial products and unlicensed financial advice to Australians.

This comes after a major federal court decision three years ago against social media influencer Tyson Scholz aka ASX Wolf on Instagram which found he carried on a financial service business without an Australian licence to do so.

Mr Kirkland said “it’s important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn’t equal credibility. Check their credentials and whether they’re licensed or authorised, before checking your money out.”

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‘ASX Wolf’ Tyson Scholz launched a Facebook fire sale in order to get funds for his court battle including this Hermann grand piano reduced from $10k to $2k. Picture: Facebook

The issues goes further than that though with BestBrokers analyst Paul Hoffman warning “in the vast, addictive scroll of social media, wisdom and misinformation often blur together”.

“For millions of young users, platforms like TikTok offer not just entertainment, but also a steady stream of life advice, much of it unsolicited, unvetted, and sometimes dangerously wrong. Nowhere is this more evident than in the world of personal finance, where catchy videos and trending hashtags often substitute for qualified guidance.”

He said in a time where cost-of-living pressures are soaring, the idea of “manifesting money” instead of budgeting for it could have long-term consequences.

“This could normalise superficial financial habits while increasing susceptibility to risky schemes” as young users experiment with “symbolic or gamified approaches to wealth, rather than traditional financial literacy”.

TikTok’s 1.59 billion active monthly users were being drawn to trends that BestBrokers believes could end up causing their savings habits harm as they hunt for quick measures rather than real financial literacy.

Among trends that it warned could be misleading were #sidehustle, #passiveincome, and #moneymanifestation which have close to 25 million views, as well as things like #forex, #passiveincome, #moneymindset, #cryptoinvesting, #debtfreejourney, #flippingforprofit, #cashstuffing, #financialindependence, #100envelopechallenge, #extremebudgeting, #creditcardhacks, #nospendchallenge, even #girlmathexplained and #paydayloans.\

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Tyson Scholz showed off a lavish lifestyle on socials before ASIC filed action against him to prevent him providing financial services without a licence.

Side hustle content – ranging from tips on launching low-cost businesses to unconventional methods for building up savings for housing loans from home – has attracted tens of millions of views on social media. Some videos even claim to show how to bring in tens of thousands of dollars per month, often with little upfront investment.

Posts suggesting that the wealthy don’t work have also gained traction, alongside minimalist or frugality-focused content promoting “underconsumption” and a move away from material excess.

While many viewers find these messages inspiring or aspirational, financial analysts urge caution, noting that some of this content may reflect more optimism than practicality, and could risk promoting unrealistic expectations if not critically assessed.

Mr Kirkland warned social media users that for specific financial products, ASIC was “seeing a pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their secrets to success or copy their trades”.

He said if a finfluencer was not licensed, an authorised representative or exempt, they were not legally permitted to carry on a business of providing investment advice in Australia.

“If you spruik or discuss financial products and services online, you need to carefully consider how the law applies to you and seek legal advice if you are unsure.”

Unlicensed activity can be reported to ASIC on its “how to report misconduct” web page or by calling 1300 300 630.