Women in their early to mid-20s are using TikTok to share how they rationalize spending and, in turn, are unveiling Gen Z’s financial patterns.
The idiom known as “using Peter to pay Paul” is now known as “girl math” on TikTok. Coined by social media users, the term represents the rationalizing young adults, primarily women, do to justify their sometimes irresponsible spending habits.
A TikTok video breaking down “girl math” recently went viral for its relatability. In the video with over 2.3 million likes and 13 million views, @mckennaelianna broke down how “girl math” validates some of her spending habits. Some of the creator’s “girl math” equations included:
“Anything I buy with a gift card is free.”
“If I buy something and then I return it, I’ve made money.”
“Going to an event or a concert is free because I bought the tickets so long ago; it doesn’t even count.”
“[Since] I load my Starbucks app in advance, Starbucks is free.”
“If I’m paying someone back, and I have money in my Venmo [Cashapp, or Apple Pay], it’s free.”
Similarly, users in the comments added that paying with cash categorizes the purchase as “free.” Ultimately, anytime consumers don’t directly see the money leaving their checking account, the transaction is free by “girl math’s” logic, liberating shoppers of the financial guilt of impulsive purchases and overspending.
“[Girl math] is a justification that people are using or young 20-somethings are using to still spend on what they want to spend, but make it make sense in their own way,” financial correspondent Jennifer Streaks told theGrio.
“Of course, they are rationalizing and girl-mathing expensive dresses, but I also see it more in the little things like Starbucks or lipstick from Sephora. I think that really comes into play when people can rationalize away smaller purchases and say, ‘Oh, that wasn’t real money. I have a Starbucks card or a Sephora credit,” Streaks added. “[But] it’s still money.”
Though gendered, the “girl math” phenomenon reflects most young adults’ spending habits. Today, Gen Z, which consists of those born between 1997–2012, exhibits financial tendencies that both raise eyebrows and likely remind older generations of the blithe financial mindset most display in their early 20s.
While some of Gen Z’s spending habits represent the demographic’s priorities, others result from the current economic climate. Streaks noted that nowadays, part of young people’s overspending is a result of inflation. Despite inflation steadily cooling down after reaching record highs in 2022, essentials like groceries and gas are still expensive. As a result of skyrocketing prices, research found that 53% of millennials and 41% of Gen Z admitted to being more reliant on credit cards.
Similarly, Bloomberg reports that young adults care more about improved quality of life than accumulating extra funds in their bank accounts.
“People came out of COVID saying, ‘I have to make sure my happiness, my emotional wellness is intact,’” explained Streaks. “There is a wave of, ‘Well, I’m doing this for me, and if that means I need to spend and buy this so that I’m XYZ, I’m going to do that.’”
From renting amenity-rich luxury properties to indulging in travel, concerts and other life experiences, today’s young adults are less inclined to finances hold them back from experiencing life. This, to Speaks, partially explains Americans’ credit card debt hitting a record $1 trillion.
However, even as the generation is adept at splurging on experiences and products that align with their passions, Gen Z is reportedly also very financially aware, with many kickstarting their financial literacy during the pandemic. With the help of social media, financial experts and advisers have been able to easily share advice and tips on how to save, invest and expand your money’s worth, making today’s young adults increasingly familiar with good financial practices.
“[Gen Z] is aware, but it still takes time to get [financially literate],” said Streaks. Despite the overspending on small items, Streaks thinks there has been an increase in saving or at least attempts to save money. “There’s more awareness that money needs to be saved [and that you need things like] an emergency fund,” she added.
In the midst of high prices, student loan debt and a looming recession, this financial awareness is fueling side-hustle culture. According to an April 2023 Bankrate survey of over 2,000 U.S. adults, 53% of Gen Zers and 50% of millennials report having side hustles. Interestingly enough, households generating more income ($100,000 or more) were 45% more likely to have a side hustle. Whether the secondary income is covering daily expenses or going toward an emergency fund, side hustlers reported expecting to always need one to survive.
Side hustles notwithstanding, when it comes to using “girl math” to rationalize overspending, Streaks advises everyone to proceed with caution.
“It’s too early to develop bad spending habits. Don’t start off rationalizing overspending because it’s so easy for it to become a habit, and you’ll regret it down the road,” she shared. “If you’re rationalizing overspending, you’re not saving money, or you’re not saving enough.”
As each generation works toward attaining financial freedom, Streaks suggests that everyone builds an emergency fund with six to nine months’ worth of expenses — and that older generations lead by example.
“Discussions about money, saving money, financial wellness, financial preparedness should be a constant discussion. You have to have money conversations with your kids.”
Haniyah Philogene is a multimedia storyteller and lifestyle reporter covering all things culture. With a passion for digital media, she goes above and beyond to find new ways to tell and share stories.
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