"Girl Math" is going viral on TikTok, but what exactly is the trend and is it really saving shoppers money? Yahoo Finance's Alexandra Canal, Josh Schafer, and Pras Subramanian define the logic loophole that enables shoppers into believing they are saving money, whether through sunk costs or shared expenses.
This post was written by Luke Carberry Mogan.
Video Transcript
ALEXANDRA CANAL: I want to start with something that has been dubbed "girl math" on social media.
And I'm going to preface that this is not just a girl thing.
Guys do this, too.
I would explain it, but there's a video that does a really good job.
This is a TikTok that caught my attention over the weekend.
So I want to play that.
So you can fully understand girl math.
- Here's a list of things that I firmly believe because of girl math.
Anything under $5 is free.
Anything I buy with a gift card is free.
If I buy something but then I return it, I've made money.
Going to an event or a concert is free because I purchased the tickets so long ago, it doesn't even count.
I load my Starbucks app in advance.
So Starbucks is free.
Anything discounted more than 50% is free.
And I'm losing money by not getting it.
If I'm paying someone back for dinner and I have money in Venmo, that dinner is free.
If I don't buy something, if I don't buy a pair of shorts for $50, I've made $50.
And I can then go spend $50 on something else.
OK, this one's a little bit weird.
But my husband and I share credit cards and a bank account.
But somehow every time that he puts down his card with his name on it, that's free.
And he paid.
ALEXANDRA CANAL: I don't know, guys.
It just makes sense to me.
The Venmo hit hard.
The Starbucks app-- I do do this.
I'll load it up for $25.
Two weeks go by.
I still have $5 left.
I'm like, oh, I should get a coffee because basically, that's free.
JOSH SCHAFER: That's why it's a good business model for Starbucks, right?
ALEXANDRA CANAL: 100%.
And it just-- it's the perception of, if you pay in advance, you don't reap the benefits till later, also known in accounting as amortization.
PRAS SUBRAMANIAN: Amortization.
ALEXANDRA CANAL: Amortization?
Oh, it's a tough word for me in my accounting class.
But basically-- PRAS SUBRAMANIAN: Tough word.
ALEXANDRA CANAL: --that's what it is.
PRAS SUBRAMANIAN: You know, I got to say-- I will say this.
It's funny segment there.
I like that.
But I think that cost per use stuff actually is something that I would actually use.
That's how you look at like you buy a pair of expensive jeans that you wear a lot to work or wear a lot that you go out.
I think it's worth it if you use it a lot.