Are Gen Z Money Trends Giving You Deja Vu? That’s Because They’re Boomer Financial Fads

We hate to break it to you, but Gen Z’s favorite financial trends might just be recycled material.

Talking about money isn’t as taboo as it once was, and we can thank social media for that.

Sure, younger generations would rather discuss politics than finances. But millennials and Gen Zers are far less guarded about “money talk” than baby boomers and Gen Xers, according to a survey from Empower.

TikTok has become the launchpad for Gen Z’s money routines and rituals. Since most of us don’t learn about personal finance in school, we turn to social media to share our financial knowledge, tips and trends, from soft saving and loud budgeting to doom spending.

But are these trends just rebranded financial strategies that have been around for generations? OK boomer, let’s see.

Financial advice is cyclical, meaning every generation will probably have some rendition of the previous generation’s money-saving practices, according to Jordan Sowhanger, a certified financial planner and wealth advisor at Girard. And that’s because the tried-and-true strategies have survived the test of time, making these trends seem less deep.

Gen Z’s favorite financial trends

Last December, social media started buzzing about a new financial trend when comedian Lukas Battle introduced “loud budgeting” on TikTok. Though it started as a joke, Gen Z ran with it, and the post has been viewed more than 1.5 million times.

Here are some of the money trends you may have heard of:

Loud budgeting

Loud budgeting is a clever money-saving tactic that urges you to speak up about cutting back on expenses. You’re keeping yourself in check by openly discussing why you’re focusing on your financial well-being. If you’d rather skip a weekend with friends to tackle credit card debt, say that out loud.

Soft saving

Soft saving rejects the rise-and-grind mentality and encourages us to embrace the present, with less stress on budgeting and saving for the future. The idea is to have a “softer” approach to life by emphasizing your mental and emotional needs alongside your finances.

100-envelope challenge

You can make finances fun with a money-saving game. Number envelopes from 1 to 100, and set aside the dollar amount on the envelope every day. So, put $1 in the envelope numbered one and $100 in the envelope numbered 100. After 100 days, you’ll save over $5,000.

Money dysmorphia

Social media has a negative effect on self-esteem, and it can make us feel financially behind, even if we aren’t. Roughly 43% of Gen Z have a distorted view of their finances and insecurity about meeting their money goals.

New generation, old money trends rebranded

Working hard, saving diligently and spending wisely. That’s age-old financial advice that stands the test of time, according to Sowhanger.

While social media brings visibility to seemingly novel savings trends, it’s not that groundbreaking. The idea of stashing cash in envelopes, for example, has been around for decades. And money dysmorphia is today’s version of “keeping up with the Joneses,” a century-old expression about comparing your social class to your neighbor’s.

Financial trends like “soft saving” and “loud budgeting” reflect what’s happening in the economy and society. Many Gen Zers started their financial journeys overshadowed by a turbulent economic environment: a global pandemic, soaring interest rates, record-high inflation and wages that haven’t kept pace. Gen Z also carries 28% of the student loan debt in the US. We embrace a “softer” approach to our finances because it’s objectively practical and realistic — not per se because it’s cool online.

What someone in their 20s is experiencing today could be said for baby boomers four decades ago. Adults who lived through the 1980s remember having to sacrifice their savings due to higher interest rates and record inflation.

The vast majority of Joy’s clients, who range from age 20 to 70, have chosen quality of life over saving for the future. That means soft saving isn’t unique to Gen Z.

“New term, same trend, regardless of generation,” said Joy.

Source: https://www.cnet.com/personal-finance/banking/savings/are-gen-z-money-trends-giving-you-deja-vu-thats-because-theyre-boomer-financial-fads/#google_vignette