Take a Look at the Feedback From Experts on Social Media Financial Trends

Take a Look at the Feedback From Experts on Social Media Financial Trends
Cover Image Source: Photo by Andrea Piacquadio | Pexles

Everybody, from common people to financial professionals, is using social media to dole out advice about investing, saving, and spending. Due to this trend, netizens are now discussing things that young people once shied away from discussing.

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Financial information is easily available online (representative image) | Photo by Pixabay | Pexels

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Alec Renehan, co-host of the "Equity Mates" podcast, tells 9honey Money that having open discussions about money on social media is positive, mentioning how many people used to frown on money. Experts in the past were mostly featured in newspapers or on TV regarding financial media. "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," says Renehan.

Although social media can make us more frugal with our money and teach us to save more effectively, some trends can backfire. "Be cautious of people on social media who call themselves 'money educators,' 'money coaches,' 'wealth consultants,' or 'property advisors' if they're not licensed. They might not have the credibility needed to give reliable advice, which could lead to wrong information and financial dangers," cautions Christine Lusher, a financial expert at Lush Wealth."By focusing on licensed experts on social media, you can get trustworthy advice, useful tips, and chances to enhance your understanding of finances," Lusher continues.

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Man reading up on business topics in the newspaper (representative image) | Photo by Pixabay | Pexels

 

Additionally, many tricks and advice are becoming more and more well-known, frequently with catchy titles. 9honey Money consulted financial experts to get their insights on these trends to help readers navigate these fashionable spending and saving strategies.

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Experts approve of the loud budgeting trend since it promotes honesty and openness about our budget limits and saving goals. "I'm fascinated by the loud budgeting trend. It seems to be about being upfront about what you will and won't spend money on, rather than avoiding topics or making excuses. This transparency and accountability are great, and it also encourages more conversations about money, which helps break taboos," says Lacey Filipich, founder and director of Money School.

On the other hand "girl math," a trend that suggests that an item is free if you pay for it with cash or that returning a product means you've earned money, isn't receiving positive feedback. "Girl math doesn't add up – there's still a cost involved somewhere, and it promotes a lack of clear financial boundaries. Cutting back on small indulgences like lattes isn't effective either – sacrificing things that bring you happiness can harm your attitude toward money by reinforcing feelings of scarcity," explains Julia Scott, a finance expert at Love Luck Wealth.

Platforms such as TikTok have popularized the cash-stuffing savings hack as an easy way to track spending and stick to a budget, even as we move toward a more cashless society. While using actual cash to pay for things can increase our awareness of our spending, it's not a foolproof method. "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 recognize those risks," Filipich explains.

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TikTok has popularized cash stuffing (representative image) | Photo by Fox | Pexels

 

The You Only Live Once (YOLO) culture promotes excessive spending and buying things we don't truly need or even want. "It's not a new idea, but with social media moving so fast, it's becoming increasingly effortless to spend money without even realizing it," says Sarah Megginson, a personal finance expert at Finder. "TikTok, especially, has expanded its shopping features in the past year. Now, you don't even need to have the money upfront to shop – you can use buy now, pay later services. It's too easy to see something briefly, decide you want it, and then impulsively buy it with AfterPay, without really considering if it's necessary or if you truly want it," Megginson continues.

The 'fear of missing out,' also known as FOMO is another factor that drives spending. "What isn't made clear is that the celebs or 'want to be' 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," Jennifer Richardson of 123 Financial Group and Got Money Honey, says.

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