New York, US – Many US schools have been falling short when it comes to teaching financial literacy, leaving an entire generation burdened by money issues to develop their own unique language around the topic. The lack of education on subjects like insurance, credit card debt, and retirement savings has led young Americans to seek financial advice from unconventional sources, including social media platforms like TikTok.
A survey by Forbes Advisor revealed that 79% of Americans between the ages of 18 and 41 turn to social media for financial guidance, with TikTok becoming a particularly popular platform for receiving personal finance lessons from content creators. This newfound interest in financial literacy has led to the emergence of a distinct lexicon that rebrands traditional money management concepts into trendy, viral terms like “loud budgeting”, “soft spending”, and “cash stuffing”.
The generation’s obsession with financial wellness, or the lack thereof, has driven them to create labels for their collective financial struggles. A survey found that nearly a quarter of 18- to 24-year-olds believe they will never be able to retire, highlighting the impact of growing up during a time of high cost-of-living and a challenging housing market.
One TikTok comedian, Lukas Battle, has popularized the term “loud budgeting”, a concept that encourages individuals to be unapologetically thrifty and cautious with their spending. This new financial language has quickly gained traction and has been embraced by many, even making its way into mainstream media headlines.
Additionally, the term “doom spending” has emerged as a way to describe reckless and indulgent shopping habits, reflecting the struggle many Americans face despite the soaring rates of holiday shopping reported by the National Retail Federation.
On the other hand, the concept of “soft savings” advocates for using finances to enhance one’s quality of life, prioritizing experiences and personal goals over strict budgeting and saving. This nonchalant approach to money management has struck a chord with some individuals as they seek to redefine their relationship with money.
The emergence of this new financial vocabulary serves as a reflection of the deep-seated financial worries that plague many Americans. The popularity of such terms underscores the urgent need for comprehensive financial literacy education in schools, as young people continue to seek guidance from non-traditional sources.
Overall, this evolving language of money may not solve all financial woes, but it does shed light on the urgent need for improved financial education and a shift in societal attitudes towards money management.