Gen Z women spend more on TikTok as app ‘drives consumption,' analyst says
Research has shown that women in their 20s spend more time on TikTok than their male peers, which exposes them to a financial risk. The app’s influence on young women’s spending habits is significant, as they connect with influencers who create aspirational content that resonates with them. Many influencers showcase their recent purchases in “haul” videos, which can be misleading because they often earn a high income from their platforms or have brand deals that provide free products. This disconnect between influencers and their audience can lead to financial decisions that are not based on their own financial realities.
TikTok’s influence on spending habits is evident, with hashtags like #TikTokmademebuyit accumulating over 8 billion views. The report also confirms that a higher percentage of Gen Z women use TikTok compared to their male counterparts.
Social media, particularly platforms like TikTok, has become the modern version of “keeping up with the Joneses” for Gen Z. The fear of missing out (FOMO) can be overpowering, leading young people to spend beyond their means despite economic pressures like a high cost of living.
The rise in nonmortgage debt among Gen Zers indicates that young consumers are accumulating more debt, particularly in personal loans and credit card balances. Financial experts emphasize the importance of staying out of credit card debt, as it can hinder one’s ability to achieve financial goals in the long run.
There are two important things for women in their 20s to remember when observing others’ expensive lifestyles on social media. Firstly, signs of wealth, such as what someone owns or wears, only indicate what they have spent, not what they have invested or saved. It’s important not to be misled by appearances. Secondly, women should consider their long-term financial plans and prioritize actions that will benefit their future, such as investing in retirement accounts or building emergency savings.
Despite challenges like the wage gap, women can take steps to secure their financial future. By laying a strong financial foundation in their 20s, they can set themselves up for greater success in their 30s and beyond.