In the Tik Tok generation that creation of new financial terms has gone into overdrive. Rent Regret [wishing you’d bought a home instead of wasting money on rent], Thrifting [op shopping], or YOLO Spending [you only live once, so why not spend] anyone?
A clever individual invented the phrase Buy Now, Cry Later, for the hangover from Buy Now, Pay Later debt.
Adulting Funds is a great concept that encourages people to put money away for grown-up responsibilities such as paying rent and bills or even building up savings. Cash Cushioning is keeping some extra money in your day-to-day account for peace of mind.
These new terms often sum up things people do anyway. Inflation Vacation is cutting down on expenses by taking a holiday from spending on non-essential spending during inflationary times. Think $7 or $8 coffees that I keep hearing about.
My children’s generation goes on about Thrifting. But this is exactly what myself and my friends did in our school years in the early 1980s, dressing ourselves on the smell of an oily rag from the Red Cross Op Shop in Mt Eden, which is, amazingly, still there.
Likewise Cash Stuffing, which is popular on Tik Tok, is a modern term for the envelope budgeting system, where weekly spending is withdrawn in cash and stuffed into envelopes for separate spending categories.
Natasha Lavulavu, a young marketing specialist from Te Ara Ahunga Ora Retirement Commission sees new phrases as catchy and relatable.
“The way we talk about money concepts can be confusing for some people. So some of these new terms are an attempt to help people understand their finances by breaking down complex concepts into more digestible pieces,” said Lavulavu.
“The idea of Doom Spending, for instance, perfectly captures the feeling of spending money impulsively when you’re feeling down. It makes it easier for people to recognise and talk about their financial habits without feeling overwhelmed by jargon.”
Instagram, like Tik Tok, is also influential. However it has a lot to answer for with Fin-Fluencers sometimes peddling dubious financial schemes to line their own pockets.
Some people find themselves Instabroke, which is feeling broke after impulse purchases promoted by influencers.
Subscription Creep, is financial death by a thousand micro subscriptions each month, which can be financially disastrous.
Another reasonably new term that many Kiwis may have experienced lately is Greedflation. That’s when businesses use the excuse of inflation to jack up prices over and above the real cost.
On the spending front, there is Revenge Spending, a term that describes people who splurged on travel, luxury goods and eating out post lockdown.
Stealth Wealth is a common concept that now has a name. It’s where rich people live modestly and keep their wealth hidden.
Crypto as an investment has come with an entire new language. Crypto Winter, for example, is a bear market after a crash. Buy the Dip is buying when the markets are down, which could relate to any market.
Meme stocks are shares that go viral thanks to being pumped on social media platforms such as Reddit. GameStop was the most infamous example. Its stock price skyrocketed 1,500% in two weeks in January 2021 after being pumped on the Internet.
The term Stonk emerged from the GameStop saga and is a deliberate misspelling of ‘stock’. It pokes fun at amateur or reckless trading decisions by newbie investors.
A Stocktok is share buying information on Tik Tok. Just don’t go there.
Finally, there are potential downsides to some of these new terms. They can make light of serious issues, said Lavulavu.
“For instance, using a term like Debt Detox might make it sound like getting out of debt is a quick and easy process, which isn’t always the case.
“It’s important to balance the use of these catchy phrases with a deeper understanding of the underlying financial principles to avoid oversimplifying or minimising the impact of financial challenges.”
