MONEY & LIFE

The Latest TikTok Trend Discourages Consumer Spending

By: Justin Jaffe · August 20, 2024 · Reading Time: 2 minutes

Spending: Out, Saving: In

Consumer spending has propped up the U.S. economy despite continued post-pandemic turbulence. In fact, it accounts for roughly two-thirds of U.S. economic growth.

Persistent inflation and high interest rates continue to exert pressure on consumers, however. And a slowdown in spending has become evident in economic data, company earnings, and now, a viral TikTok trend.

What Is ‘Underconsumption Core’?

It’s routine for influencers to endorse and promote products on social media. But now the opposite trend is gaining popularity: an aesthetic dubbed “underconsumption core”.

These videos celebrate consumers who aren’t spending. Video creators show off old things they still use, be it secondhand clothing, heirloom furniture, or half-empty make-up tubes. Some also share ideas on how to upcycle goods or get the most out of what they already have.

The trend seems to have struck a chord with increasingly cost-conscious Americans. Some underconsumption core content has attracted millions of views on TikTok, per CNBC.

TikTok Metrics

Underconsumption core isn’t the only trend discouraging spending. There’s also “loud budgeting”, which promotes sharing your financial reality and aspirations publicly, and “de-influencing” content, which lends a more critical perspective to online product reviews of popular and trendy products. .

Traditional economic reports still paint the best picture of the overall market. But informal gauges of social media trends can add valuable context and highlight subtle shifts in consumer behavior.

The rise of underconsumption core could be another indicator of continuing economic pressure in the U.S., or at least a consumer shift toward long-term stability over instant gratification.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

SOSS24082003

TLS 1.2 Encrypted
Equal Housing Lender