TikTok is proving once again that it’s a bad place to get personal finance advice! A new money trend called “girl math” is going viral on the app. Many women are making videos discussing how they justify splurges and impulse purchases by using girl math, which is bad mental accounting.
Proponents of girl math say that anything they buy with a gift card or money in their wallet or Venmo account is free. Because the purchase won’t cause their bank account balance to decrease, they’re able to justify the spending. Another example of girl math is the idea that you’re losing money if you don’t buy something when your favorite store has a good sale, which is false.
It’s easy to see why this trend could hurt your finances—it encourages overspending and justifies excessive consumerism. Here are three reasons why the girl math trend is potentially harmful and should be avoided.
It’s Too Extreme
There’s nothing wrong with treating yourself every now and then. However, the girl math trend takes self-care to the extreme.
I’ve seen girl math videos saying purchases under $5 don’t count because they’re small, so they’re free. Using that logic, there’s no reason not to treat yourself to a $5 latte daily. However, seemingly insignificant purchases can add up and hinder your financial goals. Spending just $5 per day on coffee totals $150 per month, which is a lot of money to waste on beverages.
I’ve also seen girl math videos about cost per use that take the principle a little too far. For example, if you carry a $1,000 designer handbag daily, TikTokers say that purchase amounts to pennies because the cost per use is relatively low. However, that logic doesn’t hold up when a more affordable $300 purse would perform the same function and result in an even lower cost per use.
Calculating the cost per use can be a good way to gauge whether or not a purchase is worth it based on how much you’ll use it. But try not to use this personal finance tool to justify buying a luxury item when a more affordable version would suffice.
It Perpetuates The Myth That Women Are Bad With Money
One of the reasons why I think the girl math trend is harmful is because it perpetuates the myth that women are naturally bad with money. Popular culture promotes the idea that all women love shopping and are frivolous with their finances. However, that’s far from the truth.
Studies have shown that women make fewer impulse purchases than men and contribute a higher percentage of their income to retirement accounts. So the stereotype that women are financially irresponsible is a bit sexist and can have negative effects on our financial outcomes. According to N26, the idea that women are bad with money increases our financial anxiety and contributes to the overall gender gap in financial literacy.
Mental accounting is something all humans are guilty of, not just women. It’s a cognitive bias we all possess. For example, mental accounting can cause you to view your tax refund as a “windfall” instead of regular earned income, making you more likely to spend it on luxuries. Assigning gender to mental accounting by calling it “girl math” could perpetuate the harmful myth that women are bad with money, which is why I think this trend is damaging.
It Causes You To Be Less Intentional
The girl math trend could also increase FOMO and cause you to be less intentional with your money. The idea that you’re losing money if you pass on items that are on sale can cause you to feel like you’re constantly missing out. The girl math trend also encourages you to treat your money as if it’s already gone, which is a recipe for overspending.
For example, if you resist the temptation to buy a pair of yoga pants for $50, you’ve supposedly “earned” that money back. And since you’ve “made” money, you can go out and buy something else of equal value. Treating your money like it’s already spent could cause you to be less intentional about your purchasing and saving habits and prevent you from building wealth.
Using girl math logic to justify unnecessary purchases obscures how much you’re truly spending. If you don’t have a clear budget and picture of your finances, you may have trouble achieving your long-term financial goals.
Wrapping Up
What do you think of girl math? Some people say that this trend is encouraging women to speak openly about finances. However, I disagree and think these viral videos are encouraging poor money management and perpetuating untrue gender stereotypes. Let me know what you think in the comments below!
Read More
7 of The Worst Excuses for Overspending
Budget Busters – The 4 E’s of Overspending
32 Reasons to Be Frugal Besides Saving Money
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.
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