Gen Z financial trends: Loud budgeting, doom spending, and girl math evolve new spending habits

Gen Z financial trends: As Gen Z continues to shape consumer behaviours, three distinct financial trends have emerged, shedding light on the evolving mindset towards money management and spending habits.

Loud Budgeting

A trend spearheaded by TikTok creator Lukas Battle, Loud Budgeting, has gained traction among younger generations. It emphasises openness and honesty about financial situations, encouraging individuals to vocalise their budgeting practices. Loud budgeting advocates for realism, promoting the idea of refraining from spending beyond one's means and alleviating the pressure associated with financial strain.

Doom Spending

On the flip side, a concerning trend dubbed "Doom Spending" is on the rise among Gen Z and Millennials in the US. Fueled by economic anxieties, individuals are resorting to lavish spending sprees as a coping mechanism. This behaviour, characterised by purchasing luxury items in response to growing financial worries, reflects the challenges many face in saving for long-term goals such as homeownership or retirement.

Girl Math

Adding a nuanced perspective to spending habits is the concept of "girl math," which delves into the rationale behind certain financial decisions, particularly among women. This trend involves justifying splurges through mental gymnastics, often leading to the perception that certain expenses are "free" despite having incurred a cost. Examples include viewing cash payments as "free" because the bank balance remains unchanged or considering past expenditures, such as vacations or concert tickets, as unaccounted for since they were paid for previously.

These trends underscore the complex interplay between financial attitudes, societal influences, and individual behaviors. While Loud Budgeting promotes financial transparency and responsibility, Doom Spending highlights the challenges of navigating economic uncertainties. Meanwhile, Girl Math sheds light on the cognitive biases that shape spending habits, offering insights into the psychology of consumer decision-making in today's world.