There’s little doubt Gen Z spends a lot more time on social media than older generations. And for women in their 20s, it’s influencing how they spend their money — and not necessarily in a good way.
More than half of Gen Z spend four or more hours on social media every day, according to a Morning Consult survey. But a larger share of Gen Z women (75%) use TikTok compared to men (62%), and it’s influencing their spending habits.
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It’s estimated that TikTok — a short-form video app — has more than 100,000 influencers, per Shopify, many of whom create “aspirational” content on anything from travel to entertainment. In “haul” videos, for example, they showcase “purchased” products, but they may have received those products for free in exchange for promoting them or as part of a paid brand deal.
And not all followers know the difference between a paid promotion and an authentic recommendation.
But constant exposure to aspirational content is driving increased spending among Gen Z, particularly women, with viral hashtags like “#TikTokMadeMeBuyIt,” which had 6 million posts and 83 billion views at the time of writing. TikTok Shop allows users to purchase items featured on the platform through a link on videos and live streams — so it’s even easier than ever to make impulse buys.
Keeping up with the Joneses — on TikTok
With ongoing inflation, consumers are paying more for almost everything, from rent and groceries to apparel and recreation.
Between 2021 and 2023, Gen Z increased their non-mortgage debt by 99.3%, according to a LendingTree study, including personal loans (rising 207.4%) and credit card balances (rising 174%). The study defines Gen Z as those born after 1996, from ages 18 to 26 in 2023.
At the same time, on social media they’re constantly bombarded by curated images of influencers living their “best life,” whether it’s enjoying a Mediterranean vacation or a Taylor Swift concert. This can trigger FOMO, a fear of missing out, which in turn can lead to increased spending in a modern-day version of keeping up with the Joneses.
So, rather than tightening their belt, many Gen Z are spending their money on products and experiences they see on TikTok, while their paychecks aren’t stretching as far as they used to.