In today’s fast-evolving digital world, a new wave of financial terms has taken hold, offering fresh ways to describe everyday money habits. From “Doom Spending” to “Debt Detoxing,” these catchy phrases help people navigate their personal finances, especially in the age of social media. But are they simplifying important financial concepts or making light of serious challenges?
One popular term, “Thrifting,” isn’t new but has gained renewed popularity, particularly among younger generations. Once known as “op-shopping,” thrifting refers to buying second-hand clothes and items, often driven by budget constraints or environmental awareness. “My children’s generation goes on about thrifting,” notes Diana Clement. “But this is exactly what myself and my friends did in the early 1980s, dressing ourselves on the smell of an oily rag.”
Social media platforms like TikTok and Instagram have been instrumental in creating these relatable financial terms. Natasha Lavulavu, a young marketing specialist from Te Ara Ahunga Ora Retirement Commission, highlights their value. “The way we talk about money concepts can be confusing for some people,” Lavulavu says. “These new terms help break down complex ideas into digestible pieces. For instance, ‘Doom Spending’ perfectly captures the act of impulsive spending when feeling down, making it easier for people to identify their financial habits.”
Other terms like “Cash Stuffing” and “Adulting Funds” have also gained traction, especially on TikTok. Cash Stuffing, a modern twist on the old envelope budgeting system, involves allocating physical cash to different spending categories to control expenses. “Adulting Funds,” meanwhile, refer to saving for essential responsibilities like bills or rent.
However, this new language can sometimes have a darker side. Social media “Fin-fluencers” promote dubious schemes, often leading their followers into financial hardship. The term “Instabroke” captures the aftermath of impulsive purchases inspired by influencers, where individuals find themselves financially drained.
In the face of rising prices, “Greedflation” is a new term that has surfaced to describe when businesses take advantage of inflation to unjustifiably increase prices beyond their actual costs. Another relevant term is “Revenge Spending,” which captures the post-lockdown splurging on luxury goods and travel as people sought to make up for lost time during the pandemic.
Crypto enthusiasts have also embraced their own set of terms. The infamous “Crypto Winter” describes a bear market following a crash, while “Buy the Dip” refers to purchasing assets when their prices fall. Even stocks have been rebranded with terms like “Meme Stocks,” shares that go viral after being promoted on social media platforms like Reddit. The GameStop saga of January 2021 saw “Stonk,” a misspelled term for “stock,” emerge to poke fun at amateur traders who invested recklessly, sending the price soaring by 1,500%.
While these terms may simplify complex ideas, they can sometimes trivialize serious financial issues. Lavulavu warns, “Terms like ‘Debt Detox’ can imply that getting out of debt is quick and easy, which isn’t always true. It’s essential to balance catchy phrases with a deeper understanding of financial principles to avoid minimizing the impact of real financial challenges.”
As the language of finance continues to evolve, it’s important to remember that while these new terms are helpful for breaking down complex issues, they should not replace the critical thinking needed to address serious financial decisions.