The Truth Behind ‘Girl Math’

In today’s evolving world, financial literacy stands out as a cornerstone of empowerment, particularly for young girls. But, if you’ve heard of a trend on social media called “girl math”, you may feel uneasy about how girls get financial information.

Girl math began in 2023 with a viral TikTok video explaining how some women justify their purchases with logic that only makes sense to them — if you load your Starbucks app in advance, any purchases are basically free; if you buy something, then return it, you’ve made money; if you didn’t spend any money today, then your budget doubles tomorrow.

What was intended to poke fun at female spending habits has turned into promoting the stereotype that women are not good at math or with money. Critics of girl math say that it’s a way to justify overspending. Why do women feel the need to dissect their spending habits like this? We’re told the reason we’re not rich is because we’re spending too much, and then we’re told to stop spending money on things that aren’t worth our money and aren’t valuable. Thus begins the cycle of justifying those purchases to ourselves and others.

However, there is some good that has come from girl math. If we can encourage the right situations to use girl math, then it can become very powerful when navigating investments, milestone purchases, saving, and budgeting. The foundations of girl math center around improving the quality of life through strategic purchasing.

Social Media: A Double-Edged Sword

When we talk about girl math, we must first talk about the social media effect. Social media has transformed how individuals obtain financial information, granting access to both valuable insights and potentially misleading guidance from unqualified sources. A 2023 survey commissioned by Forbes Advisor and conducted by market research company Prolific found that 79% of the Millennial and Gen Z generations have gotten financial advice from social media (including Reddit, YouTube, TikTok, LinkedIn, X, Instagram, and Facebook) about credit card debt, budgeting, and other financial matters.^[1]

Unfortunately, anyone can post anything online, including inaccurate advice about money management. The problem with getting financial advice and tax tips from 60-second TikTok videos is that it lacks a lot of context. Casual viewers taking and acting upon this advice can promote a false sense of confidence. Worse yet, reality TV stars and influencers being paid to promote advice around financial products and investments are leaving out the risks, conditions, and understanding needed to manage these types of products and investments. For those individuals who don’t have baseline financial literacy, it can be challenging to verify truthful claims and avoid misinformation.

TikTok, for example, has fueled a disconnect between how financially well-off Gen Z is and how they are actually doing. TikTok videos have also created pressure for some to buy things to fit in with their peers. Though the social media platform faces a potential ban in the U.S., more than half of all U.S. adults ages 18 to 34 use it^[2], according to the Pew Research Center, while about a third of those 29 and under say they regularly get news on TikTok.^[3]

Still, social media has broken down some barriers in personal finance. Many Millennials and Gen Zers say platforms like Reddit and YouTube have made the subject of money less taboo and boosted their feelings of empowerment around financial topics.

The Importance of Empowering Girls

Teaching children financial literacy from an early age is a priceless gift that any parent can give their child. It’s especially critical to teach daughters money skills because there’s a gap between confidence levels among girls and boys when talking about and handling finances. Women are also earning less and making fewer investments, and they are living longer and dealing with higher healthcare costs. And with social media influencers prevalent in most young adults’ lives, it’s more crucial that we arm girls with a financial literacy foundation. Here are a few ways to teach personal finance using real girl math:

1. Teach the value of money: Leverage the math skills taught in school to create monthly budgets based on allowances, part-time jobs, and goal purchases. One of the best ways to help your daughter understand how much it costs to live is to get a part-time job. She will receive a paycheck, see what’s withheld for taxes, and have an opportunity to save.
2. Nurture independence: Talk openly about money so she learns to do the same with her friends and future partner. Empower her now to understand that women shouldn’t sit on the sidelines when making financial decisions. Discuss the importance of not stepping back from your financial responsibilities and letting someone else make decisions for you.
3. Embrace budgeting: This is an excellent opportunity to teach your daughter how much it costs to live. Budgeting can be a helpful tool when considering career paths and learning how far an income will go. Periodically reviewing the budget can build discipline and self-control that can positively impact other areas of life. Being transparent about budgeting in your household can help build smart financial habits.
4. Educate on investing: A foundational understanding of investing will go a long way in preparing them for more advanced financial concepts in the future. Start by explaining the basics of investing and how the stock market works. This will demystify the process of investing and make it feel more accessible to them when they’re ready to invest. If you own stocks, explain why you chose to invest in those companies and consider including your daughter in keeping an eye on the stock and company news. The investor relations page of different companies is a good place to start to learn more about what a company earns.
5. Save early and often: According to the Economic Well-Being of U.S. Households in 2022 study, 37% of Americans would be unable to cover an unexpected $400 expense with cash or its equivalent (i.e., emergency savings).[4] Taking and investing 10% of your income can have long-term compounding effects for your daughter. Setting up automatic payments into a savings account or deciding on a predetermined amount will help them achieve their goals. Identifying a goal, such as a car purchase or a high-dollar item that they want, can entice them to build a savings habit. Small actions today can create the opportunity for them to live a more prosperous life tomorrow.

Empowering daughters with the tools and knowledge to navigate the complex world of finance not only helps them make sound financial decisions but also can help contribute to broader societal progress. By embracing these principles and actively nurturing financial literacy among girls, we can empower the next generation of women to thrive in an increasingly complex economic landscape.

¹ Where do 80% of Young Adults Get Their Financial Advice?

² How US Adults use TikTok

³ More Americans are getting their news on TikTok, bucking the trend seen on most social media sites

⁴ Board of Governors of the Federal Reserve System: Economic Well-Being of U.S. Households in 2022

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