Gen Z Isn’t Sure About Its Finances. TikTok Could Be to Blame.
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Access to affordable credit helps me pay my employees, but I don't really need it. The inflation is killing me. But who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill. See? Banks and credit unions help small businesses make payroll. This bill would cut the vital resources they need. While increasing megastore profits. They deserve it, don't they? Tell Congress, stop the Durbin Marshall money grab for corporate megastores. Paid for by the Electronic Payments Coalition.
Here's your Money Briefing for Tuesday, May 7th. I'm J.R. Whelan for The Wall Street Journal. Talk to economists and they'll tell you that money-wise, Gen Z will be just fine. In fact, they're in a better position than past generations. But Gen Zers don't necessarily see it that way. And that's mostly because many get their impression of the economy from TikTok.
People posting large shopping hauls, items that cost thousands of dollars, right next to someone living in a beautiful large home, right next to someone who's complaining about their job and how they can't afford their grocery budget anymore.
Reporter Anne-Marie Alcantara will join us to discuss how this mixed message could affect Gen Zers' personal finances after the break.
Access to affordable credit helps me pay my employees, but I don't really need it. Inflation is killing me. But who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill. See? Banks and credit unions help small businesses make payroll. This bill would cut the vital resources they need. while increasing megastore profits. They deserve it, don't they? Tell Congress, stop the Durbin Marshall money grab for corporate megastores. Paid for by the Electronic Payments Coalition.
Scrolling through their TikTok feeds might send users a helping of mixed messages.
How does TikTok create mixed messages about the economy for Gen Z?
We're headed toward a recession and that the economy is full steam ahead. Both can't be true, but TikTok users aren't sure which is true. Wall Street Journal reporter Anne-Marie Alcantara joins me. Anne-Marie, what are some examples of these confusing messages that TikTok users often see in people's posts?
So they'll see people posting large shopping hauls, items that cost thousands of dollars, right next to someone living in a beautiful large home, right next to someone who's complaining about their job and how they can't afford their grocery budget anymore. So it's very kind of like a whiplash situation where some people are having the best time of their life and then others are struggling and feeling the impacts of the economy.
What kind of pressure do these types of posts put on some users?
The pressure to spend, really. We're used to it on social media of seeing ads and influencers and sponsored posts, that sort of thing. But on TikTok, the feed can just be really endless and push you to wanting that Stanley Cup because you see five videos in a row about it. It's just a constant barrage of content that can feel really overwhelming and like, wow, I could be living a better life if I just buy these things. Me and my colleague spoke to a 23-year-old mom of two in Houston who has experienced this TikTok FOMO. She's bought TikTok popular baby clothes and then also stuff for herself, like eyelash extensions or like a coconut oil mouthwash. And she's also been influenced to maybe quit her job and take a remote commission-based job because she's seen that on TikTok and she thought, maybe that's the life I want to live.
And so she's just, she's been inspired in some ways by TikTok.
How is this affecting how TikTok users view their own economic situation?
Some have said that it can lead to money dysmorphia, which is a distorted view of your own financial situation.
Money dysmorphia?
Indeed. Yeah, it just means based on what you're seeing and how you feel about the economy and your own finances, you might end up making poor financial decisions.
But can't people judge their own money situation based on what they have in the bank and what they're able to spend?
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