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It’s no secret that people of different ages and life stages tend to get their financial advice from different sources. But many Boomers might be surprised to hear their Gen Z grandchildren have a tendency to consult #MoneyTok rather than a financial advisor or bank manager.
So what is #MoneyTok? It’s the hashtag that TikTok creators use to highlight the content they make about money, and that TikTok users search to get money advice. Other closely related and much used hashtags on the platform include #PersonalFinance, #SavingMoney, and #FinTok, along with more specific money-related tags like #CarFinance.
If you’re not familiar with TikTok, it’s one of the most popular content sharing platforms on the internet among 18-24 year olds. But it’s not just about entertainment. There’s a surprising amount of content that focuses on tips, hacks and advice in various areas, including personal finance.
There are a few popular money trends on TikTok that Gen Z are loving, and no doubt more will emerge. Here’s just a small glimpse at what’s popular on #MoneyTok right now.
#CashStuffing
We’ve talked about cash stuffing before here at Wealthtender, and it’s only got more popular since then. It’s perhaps surprising that the all-things-digital generation are using old-fashioned cash as part of their personal finance planning, but it also makes sense.
In a world where young consumers live with millions of digital distractions on their phone (including their banking apps) many are finding that actually handling their money regularly makes them more connected to it. This in turn encourages more careful and mindful spending.
Cash stuffing involves taking your entire budget, or at least the discretionary part of it, and stuffing it into envelopes marked with exactly what that money is for, effectively creating lots of little ‘mini-budgets’. Anything in the envelope can be spent on that particular category. When the envelope is empty, you’re out of budget. Anything not spent can be carried over to the next week, month, or pay period (depending on what your budget cycle is).
#NoSpendChallenge
Again, we’ve talked about implementing a no spend challenge before. It’s exactly what it sounds like. A day, week, month, or even a year where you pledge to not spend any money.
The rules around this can vary. You’re allowed to pay your rent, obviously. It’s more about cutting out all unnecessary, day-to-day spending, from eating out and entertainment to new clothes and cosmetics. Many TikTok users are jumping on the no spend band wagon, using the money they save to pay off debt and improve their savings rate.
#100EnvelopeChallenge
This is another one that involves stuffing cash into envelopes. The way this works is you have a hundred envelopes marked (you guessed it) one to 100. Whenever you have a chance, you pick one of the envelopes and put the designated amount into it. You can do it daily, and total up after 100 days, or maybe twice a week to see how much you can save over a year.
Maybe you’ve had a successful no spend week and you have $100 to put away. Maybe it’s been a tough one and you just have $5 or maybe $1. The idea is you stash away the money as you have it spare so it’s not in your bank account tempting you to spend it.
#503020Rule
The 50/30/20 rule isn’t new. It’s simply a budgeting tactic where you split your money between needs (50%), wants (30%) and savings (20%).
It’s kind of one of those arbitrary ideas that might work for some people but definitely won’t for everyone. But judging by the interest in it, there are plenty of TikTok users deciding to at least give it a try.
#LoudBudgeting
Loud budgeting seems to be the backlash movement against previously popular concepts such as ‘quiet luxury’ and ‘stealth wealth’. That is, the idea that we don’t talk about money, especially if we have it. In contrast, loud budgeting is about being vocal about what you spend your money on and why. It’s not, however, about bragging or showing off.
In fact, it’s more about unapologetically aligning your spending with your values. When you budget out loud you’re not afraid to say: “This is what I value, and this is what I’m spending my money on.” Conversely you’re also not afraid to say: “That’s not important to me – I’m not allocating funds to it.” Even when you’re dealing with something that might be highly valued by your peers or society in general.
Interested in any of these TikTok trends? Give them a search. You’ll find millions of results to get you thinking about money a little differently.
To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Read our editorial policy and terms of service to learn more. Wealthtender is not a client of these financial services providers.
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