Girl Math: Redefining Spending Habits

Ashley Skladany
Staff Writer

Living in a digital age means that social media platforms continue to play an integral role in shaping societal norms and behaviors. Among the myriad of trends that have emerged, the concept of “Girl Math” has gained traction, particularly among millennials and Gen Z. Though its name may seem unserious at first glance, this phenomenon offers insights into the complex relationship social media influences towards people’s approach to personal finance. 

Girl Math, as discussed in a LinkedIn post by Megan Norton, refers to a trend where individuals justify their spending habits through methods perceived as “relatable,” often employing mental accounting techniques. One concept she underscores is the idea of anything “[u]nder $5” being “basically free.” This mindset encourages splurging on goods that are seen as miniscule purchases, emphasizing that the satisfaction gained outweighs the momentary cost. Norton also highlights the practice of calculating the cost per use, where expensive purchases are broken down to justify their value and use over time. 

Suze Orman, a renowned financial expert, critiques the tendency to overspend on non-essential items like coffee, framing it as “peeing $1 million down the drain” and highlighting the financial impact of seemingly trivial expenses, according to CNBC. Similarly, Kevin O’Leary, star of ABC’s “Shark Tank,” emphasizes the need to prioritize financial goals overindulgent purchases, refusing to spend money on takeout coffee because of its exuberant costs compared to brewing at home. 

The Washington Post further dives into these humorous yet insightful anecdotes surrounding Girl Math. Examples include considering refunds as profits or extra spending money and viewing cash transactions as purchases that do not “count,” because they appear to not take away from bank accounts. All of these approaches reflect the mental compartmentalization of finances being used to justify indulgences. 

These behaviors are not exclusive to gender, as noted by Dan Egan, vice president of behavioral finance at Betterment, emphasizing the broader application of mental accounting across demographics. Egan believes that “what’s at play is psychology,” and a lot of the mental accounting being deployed is the result of companies using gimmicks on consumers, as reported by The Washington Post. Gift cards and other promotions make shoppersfeel more prepared to justify  purchases or spend impulsively. 

The prevalence of social media exacerbates these challenges, as platforms like TikTok perpetuate consumerist narratives and unrealistic financial expectations. Influencers and content creators often promote “doom spending” behaviors, encouraging impulsive purchases to alleviate anxieties or gain social validation. As Rue Crowder, a 34-year-old digital marketer, told NBC News, the allure of instant gratification may lead individuals to prioritize short-term indulgences over long-term financial planning

Hala Easmael, a 32-year-old pharmacy technician, shares her experience with this dilemma, navigating career changes and financial instability while striving to maintain a feeling of financial security She told NBC News, “we want to enjoy our lives, but we’re always waiting for the shoe to drop.” Ramit Sethi, bestselling author of “I Will Teach You To Be Rich,” recognizes the fun in Girl Math while maintaining a balanced approach. She acknowledges the importance of occasional indulgences alongside responsible financial planning, as reported by CNBC. Ultimately, individuals must be able to discern between needs and wants, prioritizing financial stability over fleeting desires. 

The phenomenon of Girl Math sheds light on the mental accounting practices and compartmentalization that has been used time and time again to justify spending habits. However, there has been a rise in its recognition as social media continues to shape societal norms and behaviors, as well as increased pressure. Thus, it is imperative for individuals to cultivate financial literacy and prioritize long-term financial well-being. However, this does not mean that one needs to completely cut out the joy of indulging in unnecessary purchases. Rather, by fostering a culture of mindful spending and informed decision-making, younger generations can navigate the complexities of modern finances with confidence and resilience, as well as with the joy of an occasional coffee. 

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