In the age of social media, financial advice has taken on a whole new form, led by influencers—or “fin-fluencers”—who are reshaping how young people talk about money. With catchy phrases and relatable jargon, these influencers have made personal finance more accessible to the masses. But, as with everything on social media, there are potential pitfalls.
Terms like “Debt Detox,” “Doom Spending,” and “Buy Now, Cry Later” have become part of the everyday vocabulary for younger generations navigating their financial lives. For example, “Debt Detoxing” refers to breaking free from debt, while “Doom Spending” captures the impulse to shop as a form of escapism during tough times. These terms might sound playful, but they highlight real financial habits.
Natasha Lavulavu, a marketing specialist from the Te Ara Ahunga Ora Retirement Commission, explains the growing appeal of this new language. “The way we talk about money concepts can be confusing for some people,” says Lavulavu. “Some of these new terms are an attempt to help people understand their finances by breaking down complex concepts into more digestible pieces.” She notes that terms like “Doom Spending” help people identify unhealthy spending habits, making the conversation around money less intimidating.
While this language makes finance seem more approachable, it also reveals a growing concern. Social media platforms, especially Instagram and TikTok, have turned financial advice into a viral trend. Some users find themselves “Instabroke” after following the impulsive spending habits of influencers who promote luxury items and lifestyle choices that are often unattainable for the average person.
Fin-fluencers have amassed large followings, providing tips on everything from budgeting to investing in cryptocurrencies. However, their influence is not always positive. Some have been accused of promoting questionable schemes for personal gain, leading their followers into financial difficulties. The term “Subscription Creep,” for example, refers to the slow accumulation of multiple small subscriptions that can drain a person’s finances, often without them even realising it.
The rise of crypto investments has also introduced a new vocabulary. “Crypto Winter” describes a prolonged market downturn after a crash, while “Buy the Dip” encourages investors to purchase assets during market lows. The phenomenon of “Meme Stocks”—shares that go viral on platforms like Reddit—exploded into mainstream awareness during the GameStop saga in early 2021. The event gave birth to terms like “Stonk,” a humorous misspelling of “stock” that mocks inexperienced traders, and “Stocktok,” referring to financial advice shared on TikTok.
Lavulavu cautions against the oversimplification that these catchy phrases might encourage. “For instance, using a term like Debt Detox might make it sound like getting out of debt is a quick and easy process, which isn’t always the case,” she says. While these phrases help people understand financial concepts in a more relatable way, they can also mask the seriousness of the financial challenges people face.
On the positive side, some terms reflect age-old financial practices in a modern context. For instance, “Thrifting” may sound new to the younger generation, but it’s essentially the same as the op-shopping that older generations have long practiced. Similarly, “Cash Stuffing,” a popular budgeting trend on TikTok, is just a modern take on the traditional envelope budgeting system.
But the risks remain. As Lavulavu warns, while catchy financial terms are useful for starting conversations about money, they should be balanced with a deeper understanding of financial principles to avoid oversimplifying or trivialising serious issues. For many, navigating the complex world of finance takes more than just a clever hashtag.
As fin-fluencers continue to shape the financial literacy of the next generation, it’s crucial to approach their advice with caution, balancing the allure of viral trends with solid, well-informed financial decisions.
