The budgeting trends on social media in 2024: From quiet saving to bold budgeting.

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Gen Z is using social media to guide their financial decisions during times of economic instability and increased global interconnectedness.

According to an October 2024 survey from Fidelity National Information Services, 40% of adults aged 18 to 27 are learning about personal finance from TikTok and other platforms.

As 2024 approaches, we examined the finance challenges and spending habits that were popular among Gen Z this year.

Soft saving

The FIRE movement, which emphasizes financial independence and early retirement, is being challenged by the soft saving approach, which prioritizes personal growth and self-care over long-term financial planning. This trend is being discussed on social media platforms such as TikTok and Instagram, with some influencers promoting luxury items and experiences.

"Elizabeth Schwab, program chair of the behavioral economics and business psychology divisions at The Chicago School, stated that soft saving is about enhancing your quality of life in the present moment rather than avoiding saving. It's more about the relief of not having to worry about it."

Vacations or a better work-life balance can positively affect your mental health by reducing stress.

A short-sighted approach to saving can lead to negative consequences in the future. It's important to have an emergency fund in case of unexpected expenses. A high-yield savings account with Marcus by Goldman Sachs is a great option, as it offers unlimited withdrawals, no fees, and no minimum deposit requirements.

Doom spending

Doom spending is a way for people to cope with stress and anxiety, and it's becoming increasingly common among Gen Z, with 37% of them admitting to engaging in this behavior.

"Schwab stated that the pandemic, which occurred during a crucial time in many individuals' lives, caused them to miss out on experiences. This, in turn, altered their perspective."

Buying concert tickets or a new outfit can help alleviate anxiety about an uncertain future.

Out-of-control debt can easily result from purchasing unnecessary or unaffordable items, especially when using a credit card. A March 2024 Credit Karma study revealed that Gen Z is accumulating credit card debt at a faster rate than any other generation.

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The 100 envelope challenge

The 100 envelope challenge, a distant relative of cash stuffing, encourages participants to label envelopes from 1 to 100 and deposit the corresponding amount of cash into them each day. This strategy gained popularity on TikTok in 2024, with over 43,000 clips using the hashtag #100envelopechallenge and accumulating millions of views. Completing the challenge results in saving $5,050.

An envelope won't earn any interest on your money and it's not secure against theft or loss.

If you complete the 100 envelope challenge, consider putting your money into an interest-earning account, as LendingClub offers CDs with terms ranging from six months to five years.

The no-spend challenge

The objective of the no-spend challenge is clear: avoid purchasing non-essential items for as long as possible. Essential expenses such as rent, utilities, and groceries are allowed, but luxury items like fast food, Uber rides, and new shoes are not permitted.

"No Spend January" gained popularity on TikTok in early 2024, with users sharing their experiences with the challenge.

Cutting unnecessary expenses can aid in getting out of debt and establishing new financial routines.

Sticking to a strict budgeting method can be difficult and may result in impulsive spending.

If you're serious about budgeting, a budgeting app can be invaluable. You Need a Budget (YNAB) offers customizable goals and generates reports that categorize your spending.

Loud budgeting

Instead of simply declining invitations to brunch or a weekend getaway, you explain that you can't attend because you're focused on sticking to your budget.

Lukas Battle, a TikTokker, popularized the term "loud budgeting" in a December 29 video that received over 1.6 million views. He described it as the opposite of "quiet luxury" and urged viewers to share with their friends, "I don't want to spend gas money to come see you and listen to you talk about your ex for three hours."

The joke about loud budgeting became a real trend, sparking discussions among users about its effectiveness and sharing their experiences using it.

"According to Battle, using the adjective 'loud' to describe the approach makes it seem more shameless, but it's actually about financial independence. It's not about not having enough, but rather not wanting to spend the money."

Discussing money openly with friends can promote honesty and accountability, as many people find it difficult to talk about finances.

Some individuals may find discussing finances to be uncomfortable or embarrassing.

To successfully implement loud budgeting, it's crucial to establish a budget and distinguish between necessary and unnecessary expenses.

Underconsumption core

By promoting environmental awareness and saving, underconsumption core encourages individuals to make the most of their existing possessions, such as using second-hand furniture, wearing hand-me-downs, and reusing lipstick.

Over 26,000 TikTok posts feature the hashtag #underconsumption, including a German teen's clip showcasing her grade-school sneakers and jeans. Since it was posted in July 2024, her clip has garnered over 2.4 million views and been shared over 6,000 times.

Saving money and reducing your environmental impact can be achieved by keeping hold of existing possessions.

The trend of buying vintage or repurposed items could lead you to purchase things you don't need due to the halo effect surrounding it.

Look for inspiration from other TikTokkers who share their #underconsumption hacks. Ensure their tips simplify your life rather than adding more stress.

Meet our experts

We interviewed Elizabeth Schwab, program chair of the behavioral economics and business psychology divisions at The Chicago School, and New York-based TikTokker Lukas Battle for this story.

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