Andrea Navarrete Comment On Special Notice – 6/30/21
What types of effective educational interventions have the highest potential to influence the behavior of investors, particularly newer investors? What are the costs of implementing such interventions? A great way to influence newer investors is by informing younger generations via social media platforms. As a young adult, I know that most people (regardless of race or income status) from the age ranges 12-28 spend a majority of their time on social media platforms, particularly Tik Tok. Tik Tok's algorithm is groundbreaking in its ability to reach the most amount of people regardless of a user's follower count. The platform's short video-based designed also makes it easy to inform in a thorough and concise way. Other social media platforms prioritize images, infographics or written statements. Based on my personal experience and knowledge I have gathered from young people around me, I know that younger generations are less likely to read or take the time to analyze an image while they are mindlessly scrolling many times per minute. Youtube is another great option but it does not have the reach or algorithm that Tik Tok does because a user must be informed of a particular channel and then actively subscribe. Even then, most people do not see all videos any individual user posts as they are subscribed to many different accounts at a time. Youtube's platform also encourages longer videos for which younger people do not have as much patience to sit through, particularly when it is about an educational topic like finance and there are many advertisements in videos. As a Tik Tok user, I have learned about many different topics such as history, politics, finance, neuroscience, literature and more all from one minute videos. The time limit makes bits of information on a complicated topic easy to digest and will often lead me to research further on my own. What usually occurs is when I see an interesting video on my For You Page (which is like the Facebook Wall or Twitter Timeline but not limited to people you follow) I click on the profile of the person who has posted the video, follow, and watch many other video's on their page in hopes of learning more about a certain topic. This is encouraged by Tik Tok's algorithm and I find most people operate the same way. The costs of implementing a FINRA Tik Tok page would be minor as videos could be as simple as a person speaking to a camera or pointing at text while they dance to a popular song. Video's could also be monetized which might offset any costs and potentially make the initiative free. The key to reaching the most amount of people is being aware of the month or even week's trending song, dance or video meme. Great example's of serious organizations using Tik Tok to inform young people are the following: NPR Planet Money @planetmoney and Washington Post @WashingtonPost among many more.