ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Gen Z Women are Spending More Money Than Ever on Products Promoted by TikTok Influencers

Experts are highlighting the financial risks associated with the exposure to influencers and the allure of consuming products recommended by influencers.
UPDATED JAN 22, 2024
Cover Image Source: Pexels | Pixabay
Cover Image Source: Pexels | Pixabay

TikTok has emerged as a social media powerhouse, particularly among Gen Z​ women who are not only shaping cultural trends but also influencing spending patterns. But as this demographic spends more time on the platform, experts are highlighting the financial risks associated with the exposure to influencers and the allure of splurging on the products that are recommended by them.

Not everyone can afford everything. Don't fall into the trap of making people happy and feeling pressurized so that you can fit in. That only leads to jumping off your budget|Pexels
Gen Z group of buddies enjoying a drink | Pexels

Ellyn Briggs, a brands analyst at Morning Consult notes that TikTok is a Gen Z women-centric app that sets the tone for what's considered "hot" online. The platform's short-form videos have become a breeding ground for influencers who create aspirational content, often showcasing recent purchases in "haul" videos. Although the financial reality behind these influencers' spending habits may not always be apparent, it doesn't stop young women from spending on the lifestyle they see in those videos.

Image Source: Pexels/
Tracy Le Blanc
Social media apps on phone | Pexels/ Tracy Le Blanc

The digital realm's impact on real-life consumption is a reason for increasing concern. The blurred lines between the virtual and real worlds are exemplified by the #TikTokmademebuyit trend, amassing over eight billion views in February 2023, according to Morning Consult. Gen Z women, constituting 75% of TikTok users, are more immersed in the platform's consumer-driven ecosystem than their male counterparts (62%).

Certified financial planner Shaun Williams draws parallels between social media and the concept of "keeping up with the Joneses" for the younger generation. Unlike previous generations who primarily observed shopping habits within their local communities, Gen Z now faces the challenge of keeping up with online influencers, battling the pervasive fear of missing out (FOMO).

Spend only on affordable fashion as the habit of window shopping and adding all items to the cart can empty your bank account leaving you with nothing productive|Pexels
Gen Z women find themselves succumbing to FOMO-driven spending (representational image) | Pexels

Oblivious to economic pressures, such as a high cost of living, Gen Z women find themselves succumbing to FOMO-driven spending. LendingTree reports a staggering 99.3% increase in nonmortgage debt among Gen Zs between March 2021 and the first quarter of 2023. The average debt per individual in this age group went up to $10,797, with spikes in personal loans and credit card balances.

In response to these trends, financial experts emphasize two crucial considerations for women in their 20s.

Experts caution against equating outward displays of wealth with financial stability. While influencers may showcase luxurious purchases, it's essential to recognize that these are expenditures, not indicators of wealth. Furthermore, influencers often receive sponsorship deals, and the products they flaunt may not be bought with their own money.

The wage gap and other financial challenges can make it difficult for women to secure their financial future. Instead of succumbing to social media-induced spending, experts recommend focusing on long-term financial goals, such as investing in retirement accounts, building emergency savings, and preparing for future milestones. Establishing a solid financial foundation in one's 20s can pave the way for accelerated financial growth in the subsequent decades.

MORE ON MARKET REALIST
Carey suffered a similar snafu a few months ago while playing the same game of 'Bullseye'.
10 hours ago
Fans also share some tips that could've helped Bain win the bonus round but it was too late.
11 hours ago
Emily Croke coincidentally got the question related to her great-great aunt, Emily Folger.
12 hours ago
Luckily for the veteran host, no one in the studio caught the mistake on time.
13 hours ago
The executive producer of the show, Michael Davies later apologized for the spoiled show.
14 hours ago
Even the seasoned expert was stumped by the unusual subject of the painting.
15 hours ago
In the end, Mr Wonderful cut off Greiner with a deal that the founder of Wad Free couldn't refuse.
1 day ago
Seacrest got geniunely spooked as he couldn't figure out who played a prank on him.
1 day ago
The seller brought some "Secret Service" memorabilia of former Attorney General J. Howard McGrath.
1 day ago
The guest was already emotional because of the backstory involving native Alaskans.
2 days ago
The player once again fumbled a puzzle despite moving forward in the game.
2 days ago
The host didn't want to get more of the weird answers on the show anymore.
2 days ago
The founder of Beyond Sushi impressed the Sharks with 100% plant based flavors.
2 days ago
The Shark jumped back in to the deal as he thought his wife would love the product.
3 days ago
The guest who bought the item at a charity store had no idea that it was over 3,000 years old.
3 days ago
When the rare coin showed up on Harrison's table, he had to take his old man's approval for the deal.
4 days ago
Fans said that such behavior was unnecessary and slammed the antics as self-congratulatory.
4 days ago
Several customers took to social media to complain about spoilt milk that they purchased from the store.
4 days ago
Despite the massive appraisal, the brothers shared that they would never sell their collection.
4 days ago
Harrison is often impressed by suits belonging to legendary musicians or actors.
4 days ago