The social media money trends of 2024: From soft saving to loud budgeting

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Coming of age amid economic uncertainty and heightened interconnectivity, the members of Gen Z are leaning on social media to inform their relationship with money.

Forty percent of adults 18 to 27 say they're learning about personal finance from TikTok and other platforms, according to an October 2024 survey from Fidelity National Information Services.

With 2024 drawing to a close, we decided to take a look at the viral finance challenges and spending habits that captured Gen Z's attention this year.

Soft saving focuses on spending money on experiences and goods that foster personal growth and self care over long-term financial planning for an uncertain future. Think of it as the inverse of the FIRE (Financial Independence, Retire Early) movement that was buzzing in 2023.

Influencers debated the trend on TikTok and Instagram, with some showcasing iced coffees, Hokas and other sudden splurges.

"Soft saving is really about the here and now and improving your quality of life," said Elizabeth Schwab, program chair of the behavioral economics and business psychology divisions at The Chicago School. "It's not the avoidance of saving as much as it is this ease of not having to worry about it."

Pros: Spending on vacations or choosing a job with a better work-life balance can reduce stress and have a positive impact on your mental health.

Cons: It's a short-sighted approach that can leave you in worse shape in the long run.

Tip: If you're soft saving, make sure you still have an emergency fund for unexpected expenses. With unlimited withdrawals and no fees or minimum deposit requirements, a high-yield savings account with Marcus by Goldman Sachs is a great option.

Doom spending is a coping mechanism that sees practitioners making impulse purchases to alleviate stress and anxiety. With ongoing inflation, global unrest and a contentious presidential election, it's not surprising that 37% of Gen Z admits to doom spending.

"We just came through a pandemic that happened during a pivotal point in a lot of these people's lives," said Schwab. "The number one thing they missed out on was experiences. I think that shifted their perspective."

Pros: Splurging on concert tickets or a new outfit can take your mind off an uncertain future.

Cons: Buying stuff you don't need or can't afford can easily snowball into out-of-control debt, especially if you're using a credit card. According to a March 2024 Credit Karma study, Gen Z is racking up credit card debt faster than any other generation.

Tip: If you're going to treat yourself, consider a rewards card that earns additional benefits. Want to splurge on dining out? The American Express® Gold Card earns 4X Membership Rewards® points for every dollar spent at restaurants worldwide (up to $50,000 in purchases per calendar year, then 1X points for the rest of the year).

If you spread your impulse buys across a few different categories, the Citi Double Cash® Card offers 2% cash back on every purchase (1% cash back when you buy, plus an additional 1% as you pay). Plus, there's no annual fee.

A distant cousin of cash stuffing, the 100 envelope challenge tasks participants with labeling individual envelopes from 1 to 100. Each day, you pick an envelope and whatever number is on it is the amount of cash you put in it. (You can go in numerical order or choose envelopes at random.)

The strategy went viral on TikTok in 2024, with more than 43,000 clips using #100envelopechallenge" and accumulating millions of views.

Pros: Gamifying saving money can make it more appealing — successfully completing the challenge means you've saved $5,050.

Cons: Your money won't earn any interest in an envelope and it's not protected from theft or other loss.

Tip: If you complete the 100 envelope challenge, put your money to work in an interest-earning account. Happen Bank offers CDs with terms ranging from six months to five years.

The goal of the no-spend challenge is pretty self-explanatory: Abstain from buying non-essentials for as long as you can. While rent, utilities and groceries are okay, fast food, Uber rides and new shoes go on the back burner.

This trend has been around for some time but it got new life on TikTok in early 2024 in conjunction with "No Spend January," with users recounting how they did on their challenge.

Pros: Eliminating unnecessary spending can help you climb out of debt and reset your financial habits.

Cons: A strict budgeting method is harder to stick to and can lead to revenge spending.

Tip: A budgeting app can be invaluable if you're serious about budgeting. You Need a Budget (YNAB) allows you to customize your goals and generates reports that break your spending into categories.

Loud budgeting leverages social pressure to keep participants honest: Rather than just demurring invitations to brunch or a weekend getaway, you explain that you can't participate because you're trying to stay on budget.

TikTokker Lukas Battle coined "loud budgeting" in a December 29 clip viewed over 1.6 million times. Calling it the "opposite of quiet luxury," Battle encouraged viewers to tell 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."

What started as a joke turned into a genuine trend, with users debating the merits of loud budgeting and sharing their experiences employing it.

"Putting the adjective 'loud' in front of it makes it a more shameless approach," Battle told CNBC Select. "But it's really about financial autonomy. It's not 'I don't have enough,' it's 'I don't want to spend the money.'"

Pros: Loud budgeting fosters honesty about money, a topic many people are uncomfortable discussing. It may even lead your friends to help you stay accountable.

Cons: Finances can be a stressful or embarrassing subject. Some people may feel slighted or insulted by your detailed explanations.

Tip: If you're going to try loud budgeting, you'll need to have a budget and a clear idea of what is essential spending for you and what's extraneous.

Underconsumption core combines saving and environmental awareness by encouraging people to make the most of the goods they already have — whether that's decorating with second-hand furniture, wearing your mom's hand-me-downs or using the last smear of lipstick before buying a new tube.

There's more than 26,000 posts on TikTok using #underconsumption, including a clip of a German teen showcasing the grade-school sneakers and jeans she still uses. Since it was posted in July 2024, her clip has generated more than 2.4 million views and been shared over 6,000 times.

Pros: Holding onto existing items is a good way to save money and shrink your consumer footprint.

Cons: The halo effect surrounding this trend could lead you to buy things you don't need simply because they're vintage or repurposed.

Tip: Get ideas from other TikTokkers whose #underconsumption hacks you like. Just make sure their tips are making your life easier, not more stressful.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Elizabeth Schwab, program chair of the behavioral economics and business psychology divisions at The Chicago School. We also spoke with New York-based TikTokker Lukas Battle.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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