Money trends are all over social media these days… but do they actually work? Here’s how to make sense of them.

 

According to recent research, almost 20% of U.S. consumers have tried a personal finance trend they saw on social media (for Millennials, that figure is closer to 30%). And with the volume of money challenges and hacks that have crossed my feeds lately, I wouldn’t be surprised if that number has grown substantially. 

One big reason personal finance trends go viral is because they’re relatable, often inspired by common money management problems. They also give people a sense of community; participating in a trend makes you feel like you’re a part of something bigger than yourself, and if you’re stuck in a financial rut, that feeling can be a powerful source of motivation. 

However, it’s important to take any money trends you see online with a grain of salt. Social media doesn’t always show the full story: those viral trends and “life hacks” might be exaggerated for engagement. You could also run into trouble if you latch onto a trend without fully understanding what it means, or how it could impact your finances. If you do choose to try out a financial wellness trend, it should be about finding better ways to manage your money and reach your financial goals, not getting more likes and followers.  

Here are the top money trends making the rounds on social media this year, what they really mean, and how you can potentially make them work for you. 

#1 – The “No-Spend” Challenge 

Does it feel like every time you step outside, you spend money? If so, you’re not alone. The “no-spend” challenge, which encourages people to avoid spending money on anything but the essentials, hit TikTok in early 2024 and has gone viral in spurts ever since. 

With consumer prices anticipated to rise through the rest of this year, more people are looking to scale back on discretionary purchases. If you need a little extra motivation to stick to a budget, participating in the “no-spend” challenge could help you get into the frugal mindset. 

This type of challenge has the same appeal as a cleanse: it’s an opportunity to start fresh in your mindset and potentially rid yourself of some of the “addictions” or bad habits you previously couldn’t shake. But also similar to a cleanse, the timeline is finite and knowing that makes sticking it out a little easier.

To cut out any nonessential purchases, you’ll have to track expenses closely and think more critically about your needs versus wants, which could help you develop more intentional spending practices. Through the challenge, you might also discover cost-free alternatives to your favorite activities. Instead of going out to dinner, you could cook a nice meal at home. Or you could swap that pricey gym membership for free YouTube workouts and walks in nature. 

That said, approaching your spending with an all-or-nothing mindset could cause undue stress. Maybe instead of a “no-spend” challenge, try a “low-spend” challenge: prioritize the essentials, but don’t deprive yourself of a little treat (another big trend) every now and then if you have the budget for it. 

#2 – Underconsumption-core

While similar to the “no-spend challenge”, underconsumption-core is less a game than it is a lifestyle, founded on the simple idea that people just don’t need that much stuff. In a culture shaped heavily by consumerism, curbing material purchases can feel empowering. That feeling is infectious, so much so that it’s birthed an entire online subculture. 

When you search “underconsumption,” you’ll likely see people showing off the various ways they avoid buying new things: they’re making coffee at home, reusing pasta jars as drinkware, and wearing out their clothes, and they want their audiences to know that this is what a normal life could look like. 

For some, underconsumption messaging (and reinforcement) could provide a nice alternative to the upscale lifestyles that the algorithm loves. However, like with the “no-spend” challenge, putting pressure on yourself to live in the extreme could lead to guilt and anxiety. Underconsumption could also be equally as performative as overconsumption. If you’re committed to following this trend, those moments where you do buy something new may feel like cheating. 

If you feel yourself drawn to any extreme, it could also be a signal to take a step back and reassess your money values. It’s likely that your best fit is choosing somewhere in the middle of the two extremes.

Dabbling in underconsumption-core might help you to make more mindful spending decisions, but those healthy habits could also give you a little wiggle room to splurge. This is why I like setting aside money specifically for these moments: complementing my “rainy day” fund with one for sunny days, too. 

#3 – Loud budgeting

Some folks simply need a little extrinsic motivation to stick to a budget. It’s a common struggle that’s given rise to another one of TikTok’s favorite finance trends: loud budgeting. It happens to be my favorite recent trend as well.

Loud budgeting is about enlisting your friends and loved ones into supporting you (and maybe joining you) in your budgeting priorities. The “loud” part of the budgeting is vocalizing your boundaries for spending money. Perhaps your friend group wants to go to dinner? You would vocalize what you’re willing to spend prior to selecting the restaurant so that you don’t feel pressured to split a check that blows up your monthly goals.

Really, loud budgeting is simply a trendy way of practicing values-based decision-making. Instead of letting peer pressure and emotional impulses guide your financial decisions, you spend and save according to your personal goals. But identifying your values and goals are precursors to implementing a loud budgeting approach; that pre-thinking and planning are what make it especially appealing to me. 

This practice could help you stave off lifestyle creep and resist the pressures of social media, while also encouraging you to actively build toward the life you want. And it tends to be less restrictive than the no-spend challenge, or even underconsumption. 

#4 – Vibe-based budgeting 

Not everybody’s budget is about the numbers, these days. Research shows more people are budgeting based on what they feel about the economy, or what they feel they can afford, rather than their financial reality. 

When you think about how closely our money and our mental health are connected, it’s easy to see how emotions can drive our financial decision-making. And this isn’t always a bad thing. However, leaning too heavily on emotions might obscure more practical approaches to your finances, and even lead to harmful effects like money dysmorphia: a distorted perception of your financial situation that could quickly become an unhealthy obsession with money. 

If you find yourself practicing “vibes-based” budgeting, try shifting to a “values-based” approach. Focus on your personal financial goals and the steps required to achieve them. Then, build your budget from there. 

#5 “Poor people habits”

It sounds derogatory, but the Reddit thread that initiated this trend is full of wholesome tips for saving money in small ways. Some don’t seem very impactful or appealing, like pocketing restaurant condiment packets. However, others seem more mainstream, such as shopping in the clearance aisle. 

I have a lot of these habits myself; glass jars are the perfect vessel for leftovers, if you ask me. But instead of thinking of these behaviors as “poor people habits,” I reframe them to be about getting the most value out of something. This mindset helps you to ease the guilt about waste, feel more satisfied with what you buy, and even make more conscious choices in other areas of your life. 

No matter what you call them, frugal quirks and hacks can transform into sustainable money management practices over time, with a little more strategy and effort. As my dad often said, “don’t be penny wise and pound foolish.” The point of developing these frugal habits is to put the money you save away for your goals, even if the savings are small. Hoarding ketchup packets might not help you meet your goals, but perhaps cooking more at home could help you save a little more each month for vacation, building an emergency fund or paying down debt. 

Take what you need and leave the rest

No matter what financial trends you’re seeing on your feeds, the best way to look after your own financial wellness is to stick to your goals. Trends can be helpful for inspiration, but you shouldn’t reboot your entire financial strategy to participate; instead, the trends you choose to follow should fit with your life and your personal money values. 

Jenius Bank® is a division of SMBC MANUBANK. Member FDIC.

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