Standard personal finance advice is to spend less money than you make while allotting some for savings.
A new trend popularized on social media has captured Generation Z, though, and it’s taking that concept to extremes. Called “underconsumption core”, it rejects conspicuous consumption and overspending, and instead celebrates minimalism, sustainability, shopping less and reusing more.
Although the intention of this movement is positive and it can help people live within their means, it can go too far.
Here’s what underconsumption core is and how to adapt it so it’s appropriate for your needs and values.
How Underconsumption Core Works
The underconsumption core trend on social media platforms like TikTok, Instagram and YouTube is primarily a youth-driven movement that touts purchasing and owning less and focuses on buying intentionally, says Helen Robb, director of product management for Spruce, a mobile banking app built by H&R Block.
“It’s a popular, timely reaction to a consumerist culture that often promotes excessive spending and materialism,” she says.
So, rather than splurge on new items whenever the mood strikes, the idea is to extend the life cycle of what you already have, in addition to borrowing, trading and pursuing pre-owned items at no or low cost.
[Read: Inside the Psychology of Overspending and How to Stop.]
“Its combatting feelings of needing to ‘keep up’ with fast-fashion hauls and overfilled makeup and skincare drawers, videos of people with just the things they actually need for their everyday encourages people to embrace more conscious and sustainable buying habits,” Robb says.
The underconsumption process is fundamentally simple:
— Take stock of what you have so you don’t duplicate what you need.
— Shop sparingly and mindfully.
— Use everything you own to the fullest instead of throwing things away.
— Rather than shopping at ultra-low-cost e-commerce sites like Temu, search for items at thrift stores, and give and get free things on platforms like Freeya and Facebook Marketplace Freestuff.
[Related:Breaking the Online Delivery Habit]
Why Gen Z Is Embracing Underconsumption
GenZers (those born between 1997 and 2012) have been flooded with social media content that, in the past, flaunted excess.
According to Kerrie Carden, CEO and founder of Equip Advisory, a financial planning and management consulting firm, in Baltimore, the underconsumption trend is especially appealing to girls and women.
“In the U.S., women still make less than their male counterparts,” says Carden. “This is one of the things they can do to be intimately involved with their money. They’re making the most when making less.”
“Underconsumption taps into common interests for today’s environmentally conscious young adults, helping to protect their wallets and the planet,” Robb says, explaining that it heavily aligns with conscious consumption. People in this demographic want to leave a positive impact on the environment.
However, underconsumption core can seem strange to people who were forced by financial constraints to live on strict budgets. Some think it descends into voluntary hardship.
When Jaida Howell, a 22-year old product designer for the fintech company Chime in San Francisco, first heard of the trend, she wondered why it’s a trend at all.
“We did hand-me-downs as a kid and lived in a minimalist household, so I thought it was kind of odd,” Howell says.
“Why would you want to do this? I have immigrant parents, and we had to learn young to buy only what we needed and to make the most out of everything we bought,” she adds.
The Benefits of Underconsuming
“Extending the use of anything is simply better for the environment and saves money,” says David Delisle, a financial literacy advocate from British Columbia, Canada. “There has been a huge trend for constantly buying new things but in the past, we would take our shoes to a cobbler or have our appliances repaired.”
From a personal finance perspective, underconsumption certainly has its benefits. The less you spend on things you don’t need, the less apt you are to get into expensive consumer debt and the more money you can save for goals.
“Not only can it simplify your lifestyle and help you save money, but changes to your consumption habits can also better connect you to local businesses and ethical brands, introduce you to a supportive online community and lead to improved mental well-being due to reduced finance-related stress,” Robb says.
“Much like other social trends of de-influencing and loud budgeting, underconsuming gives a way to pause the reactive nature of social media, investigate your own choices and take actions that align with your own long-term goals and values,” she says.
[Related:Will the TikTok ‘Deinfluencing’ Trend Actually Help You Spend Less?]
The trend also focuses on buying quality over quantity, since consumers are encouraged to invest in well-made items that will last rather than buying cheaper, single-use goods that end up in landfill much sooner.
“This is evident in the push for secondhand shopping; thrifting and buying used items to reduce waste and save money are large interests for today’s young adults,” Robb says.
Indeed, 40% of Gen Zers are choosing to shop from the secondhand apparel market, according to trend forecasting company WGSN.
When Overdoing Undeconsuming Can Hurt
Kris Ruby, a New York City-based social media expert and the founder of Ruby Media Group, says a lot of these movements are little more than public bragging.
“This trend is a race to the bottom,” Ruby says. “It’s a way to compete. Who can spend the least? Well, what happens when you need to spend more? There is no winning.”
Ruby also points out that there are certain things you’re better off not using after they’ve gone bad just to prove how financially and environmentally conscious you can be.
“No, don’t use old eye makeup because someone on TikTok said it’s OK,” she says. “You won’t be saving money when you have to spend thousands of dollars in emergency room bills.”
If it’s not in the best interest of your health, don’t do it. And that includes your mental health.
“If your underconsumption reduces your spending to levels that aren’t sustainable, that could have a negative impact,” Robb says. “Don’t beat yourself up or add stress worrying too much about indulging here and there.”
How to Find Balance Between Under- and Overconsuming
Although social media content creators can provide some good tips on how to extend the shelf life of your stuff, avoid getting wrapped up in their advice.
Instead, step back and evaluate what is truly important to you.
“This allows you to move beyond making your spending habits a performance and instead focusing on better understanding what you truly value,” Delisle says. “The more you focus on what brings you joy, the more you’ll realize what doesn’t.”
And definitely do not feel guilty about buying the things that you need and can afford.
“Remind yourself of social media’s role in your mind,” Robb says.
“What you want to do with your money may be different from the people you follow. If it’s possible for you, your budget should have room for some joys and discretionary spending, alongside making great responsible choices towards your long-term goals,” he adds.
As for Howell, she doesn’t believe in taking underconsumption core too seriously.
“You have to find balance, but that’s different for everyone,” she says.
“Influencers live unrealistic lives, so don’t always follow what they say. If you want to get your nails done, do it sometimes,” she adds.
Still, Howell says she’s glad that cutting waste and making better consumer decisions is becoming popular.
“It’s cool that people are being more aware and repurposing items,” she says. “That’s good practice. It’s important for our generation. You don’t have to get a new water bottle or mattress. Learn how to be frugal.”
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Will Underconsumption Cure Gen Z’s Money Woes? originally appeared on usnews.com
