Experts weigh in on money-saving trends: What's coin-troversial and what's coin-vincing?
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In the digital age, social media has become hotbeds for financial advice, with users sharing a plethora of money-saving tricks, investment tips, and spending trends.
While this democratisation of financial knowledge can be empowering, it's essential to approach such advice with caution.
Experts are now warning about the dangers of certain social media money trends, and highlighting one particular strategy that could be beneficial.
The conversation around money is changing, and social media is at the forefront of this shift.
Alec Renehan, co-host of the Equity Mates Investing Podcast, said, ‘Money has been a taboo topic for so long, that I think a more open and inclusive conversation about money enabled by social media is a great thing. When you look back on the financial media of our parents' generation, it was mainly financial experts on TV or in the papers.’
‘These days, on social media, it is everyday people talking about their finances—sharing tips and mistakes, and making the whole topic more relatable. I think that's a great thing.’
Yet, the flip side of this coin is that not all advice is created equal.
While the advantages might facilitate improved savings and more conscientious spending, the drawbacks possess the capacity to inflict significant harm on our financial well-being.
Christine Lusher, a financial expert at Lush Wealth, cautioned, ‘Unlicensed individuals who may brand themselves as “money educators”, “money coaches”, “wealth consultant”, or “property advisors” may lack credibility, leading to potential misinformation and financial risks.’
‘By prioritising licensed experts on social media, you can gain access to reliable insights, practical tips, and opportunities to improve your financial literacy.’
Amidst the sea of financial tips on social media, certain trends have gained popularity, often accompanied by catchy buzzwords.
To help navigate these, finance experts weighed in on which to adopt, and which to avoid.
Loud budgeting
One trend that received a thumbs up is 'loud budgeting', an approach that promotes honesty and openness about budget limitations and savings goals.
Lacey Filipich, Founder and Director of Money School, commented about this, saying, ‘I find the loud budgeting trend intriguing. From what I've seen, it's being clear about what you will and won't spend money on, instead of dodging around things or making excuses to cover up why you're not spending money in a particular way.’
Girl-math
On the other hand, the 'girl-math' trend, which suggests that an item is free if paid for with cash, or that returning a product equates to making money, was dismissed by experts.
Julia Scott from Love Luck Wealth warned, ‘Girl math doesn't work—it's still a cost somewhere along the line, and it encourages a lack of financial boundaries. Cutting back on lattes doesn't work either—cutting back on things that bring you joy is bad for your money mindset, because it reinforces feelings of lack.’
Cash stuffing
Another trend that's made waves is 'cash stuffing,' a method that involves physically allocating cash to different spending categories.
While handling cash can make one more mindful of spending, it is not foolproof.
‘I think cash stuffing has potential downsides that don't often get addressed, such as the risk of losing the physical cash and the interest that you're not earning on that money if you have it out of your bank account for over a month. The physical connection with what you're spending might be of enough benefit to outweigh that, but please do recognise those risks,’ Filipich explained.
YOLO consumption culture
The 'YOLO' (you only live once) consumption culture is, according to the experts, another trend to be wary of as it promotes excessive spending, and encourages purchases beyond our genuine necessities, often surpassing our true desires.
Sarah Megginson, a Personal Finance Expert at Finder, said, ‘It's nothing new, but the way social media moves at breakneck pace means it's getting easier and easier to spend money while scrolling without even thinking about it.’
‘TikTok, in particular, has gone hard on adding stores and shopping capabilities over the last 12 months, and you now don't even need to be able to afford something to go shopping—you can use “buy now, pay later”. I think it's way too easy to have a passing flash of interest in something, and then commit to a purchase using AfterPay, without thinking through whether you really need or even want the actual thing.’
FOMO
Similarly, the 'FOMO' (fear of missing out) phenomenon could drive unnecessary spending, as users compare their lives to the often unrealistic standards set by celebrities and influencers.
Jennifer Richardson of 123 Financial Group and Got Money Honey reminded, ‘What isn't made clear is that the celebs or “want to bes” are not disclosing that they are being paid, or are being gifted the items that they are endorsing. What we see on social media is not the full picture, yet we are judging ourselves against that standard.’
Aside from the ones mentioned, there are also some vintage money-saving tricks that are making a comeback this year.
On the other hand, you should also be mindful of the little habits that might be costing you money unknowingly.
What are your thoughts about these money saving tricks? Do you have your own way of saving money? Let’s share and discuss them in the comments below!
While this democratisation of financial knowledge can be empowering, it's essential to approach such advice with caution.
Experts are now warning about the dangers of certain social media money trends, and highlighting one particular strategy that could be beneficial.
The conversation around money is changing, and social media is at the forefront of this shift.
Alec Renehan, co-host of the Equity Mates Investing Podcast, said, ‘Money has been a taboo topic for so long, that I think a more open and inclusive conversation about money enabled by social media is a great thing. When you look back on the financial media of our parents' generation, it was mainly financial experts on TV or in the papers.’
‘These days, on social media, it is everyday people talking about their finances—sharing tips and mistakes, and making the whole topic more relatable. I think that's a great thing.’
Experts weighed in on popular money-saving trends in social media. Credits: Shutterstock
Yet, the flip side of this coin is that not all advice is created equal.
While the advantages might facilitate improved savings and more conscientious spending, the drawbacks possess the capacity to inflict significant harm on our financial well-being.
Christine Lusher, a financial expert at Lush Wealth, cautioned, ‘Unlicensed individuals who may brand themselves as “money educators”, “money coaches”, “wealth consultant”, or “property advisors” may lack credibility, leading to potential misinformation and financial risks.’
‘By prioritising licensed experts on social media, you can gain access to reliable insights, practical tips, and opportunities to improve your financial literacy.’
Amidst the sea of financial tips on social media, certain trends have gained popularity, often accompanied by catchy buzzwords.
To help navigate these, finance experts weighed in on which to adopt, and which to avoid.
Loud budgeting
One trend that received a thumbs up is 'loud budgeting', an approach that promotes honesty and openness about budget limitations and savings goals.
Lacey Filipich, Founder and Director of Money School, commented about this, saying, ‘I find the loud budgeting trend intriguing. From what I've seen, it's being clear about what you will and won't spend money on, instead of dodging around things or making excuses to cover up why you're not spending money in a particular way.’
Girl-math
On the other hand, the 'girl-math' trend, which suggests that an item is free if paid for with cash, or that returning a product equates to making money, was dismissed by experts.
Julia Scott from Love Luck Wealth warned, ‘Girl math doesn't work—it's still a cost somewhere along the line, and it encourages a lack of financial boundaries. Cutting back on lattes doesn't work either—cutting back on things that bring you joy is bad for your money mindset, because it reinforces feelings of lack.’
Cash stuffing
Another trend that's made waves is 'cash stuffing,' a method that involves physically allocating cash to different spending categories.
While handling cash can make one more mindful of spending, it is not foolproof.
‘I think cash stuffing has potential downsides that don't often get addressed, such as the risk of losing the physical cash and the interest that you're not earning on that money if you have it out of your bank account for over a month. The physical connection with what you're spending might be of enough benefit to outweigh that, but please do recognise those risks,’ Filipich explained.
YOLO consumption culture
The 'YOLO' (you only live once) consumption culture is, according to the experts, another trend to be wary of as it promotes excessive spending, and encourages purchases beyond our genuine necessities, often surpassing our true desires.
Sarah Megginson, a Personal Finance Expert at Finder, said, ‘It's nothing new, but the way social media moves at breakneck pace means it's getting easier and easier to spend money while scrolling without even thinking about it.’
‘TikTok, in particular, has gone hard on adding stores and shopping capabilities over the last 12 months, and you now don't even need to be able to afford something to go shopping—you can use “buy now, pay later”. I think it's way too easy to have a passing flash of interest in something, and then commit to a purchase using AfterPay, without thinking through whether you really need or even want the actual thing.’
FOMO
Similarly, the 'FOMO' (fear of missing out) phenomenon could drive unnecessary spending, as users compare their lives to the often unrealistic standards set by celebrities and influencers.
Jennifer Richardson of 123 Financial Group and Got Money Honey reminded, ‘What isn't made clear is that the celebs or “want to bes” are not disclosing that they are being paid, or are being gifted the items that they are endorsing. What we see on social media is not the full picture, yet we are judging ourselves against that standard.’
Aside from the ones mentioned, there are also some vintage money-saving tricks that are making a comeback this year.
On the other hand, you should also be mindful of the little habits that might be costing you money unknowingly.
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