Gen Z thinks ‘the money will come back’ on TikTok. This will happen?

A social-media trend that has recently taken over TikTok is letting people share videos or photos from traveling abroad with the overlaying text: “I’ll get my money back, but I never…” The blank at the end says “… be 20 years old and swimming again on a deserted beach in Albania.”

This sentiment seems to be creeping on every generation. (In 2015, this took the form of a viral article, “If You Have Savings in Your 20s, You’re Doing Something Wrong.”) The problem is that it’s misguided.

It’s a myth that you only have two choices about money in your 20s — that you’re either completely off, frugal and saving for your future, or that you’re going to work your way through life. Making way, racking up priceless experiences (and maybe debt) and planning to become more financially prudent later.

In fact, you can save for your future and swim in the waters of Albania or eat pie on the train through the Swiss Alps. (Or, depending on your particular financial situation, your “yolo-ing” may be more cost-effective.) You just need to think strategically about your money and your ambitions — that is, set goals and stick to a budget. Be who will allow you to meet them.

Taking stock of your cash flow and planning your spending can help you avoid the volatile financial swings of always setting aside or always saving. Instead, you can set yourself up for a life of stability and choice.

An important truth of the TikTok trend is “I will refund the money.” It is true that many people will see growth and promotion during the course of their career. But it’s also worth remembering that life doesn’t get less expensive as you age. Your expenses also increase – your future self may want to buy a house, rescue some dogs, get married, grand trips. can, buy nice clothes and food, have a child or two, maybe take a sabbatical from work. And it is more likely that you will experience a health crisis or need to support a loved one financially.

Spending more early in life can set a precedent which you may not necessarily be able to maintain in future without harming yourself financially.

Take an example: having children. Favorite line from one of my husband’s coworkers, who is married, child-free and in his 50s: If you don’t have kids, your 30s are your 20s, but with money. Expanding a family is a huge expense, especially in the US, which has seen increased maternal mortality, offers no compulsory paid leave after childbirth, and is disastrous for working parents. Offers expensive child care options.

That doesn’t mean you’re not living it out into your 20s. You can still go on adventures and live a fulfilling life while working to build a strong financial base. This can mean making day-to-day financial choices that allow you to set aside money for your future goals or choosing a cost-effective version of your dream today instead of outright luxuries affecting your savings. .

The key is to be intentional. If you want the freedom to take a two-week vacation to the number 1 destination on your bucket list, set aside money for it. It should be part of your spending plan (aka budget). If you’re able, set aside money for a trip each month to pay off any debt, build an emergency savings fund, and invest in a retirement plan.

Here’s how it works in practice: Start by listing your required monthly costs (rent, utilities, transportation, groceries, dog food, student loan payments, etc.). Write down your monthly net income and subtract your monthly costs. You must contribute to your retirement plan before the money comes into your checking account, so it’s already a check off an item from the to-do list. In an ideal situation, your income exceeds your essential expenses.

Assuming a surplus, you can decide where you want to direct that money each month once your basic needs are met. This can include saving for your next adventure and a line-item in your budget for dinner out or a show to watch. You can include whatever you want in it – but the point is to live within your means.

Will you be able to do absolutely everything all the time or just buy whatever you want? No, but keeping track can help you set priorities and make sacrifices you won’t regret later.

Planning like this allowed me to travel internationally when I was 20, as well as save and invest and help my husband pay off student loans. It also helped that I had a full time hustle and directed that income toward my “fun goals.”

It’s easy to fixate on the binary of frugality or living it. But it’s far more rewarding to find out what really matters to you. We are constantly bombarded with messages about what we should value and strive for, but much of it is marketing and social pressure. (Do you also find swimming on a secluded beach in Albania attractive to you? Traveling is not your thing and you want to put more money for a hobby.) Focusing on your values ​​will help you keep spending, saving and investing. needed. your money Say no to what you don’t want and budget in what is important.

The future is not promised, so yes, please make some memories and live life moving forward. But hedge your bets financially, just in case you live to a ripe old age.

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