If Gen Z and millennials had to share one lifestyle mantra, it would probably be “good vibes only.” We use it to guide everything—from the friendships we pursue and the conversations we have to the jobs we take and the cities we move to—if the vibes are off, we simply don’t want anything to do with it. And now, according to a recent Credit Karma survey, that same energy has begun creeping into another rather unexpected category of our lives: our budgets. Nearly half of Americans—with Gen Z and millennials being the majority—have admitted to budgeting based on the ~vibes~ of the economy. Coined as “vibe-based budgeting,” individuals are adjusting their spending habits based on how the economy makes them feel rather than what is physically in their bank accounts.
But as far as “vibe-based budgeting” being a genuinely helpful tool for managing our finances versus a trend masquerading as a useful financial strategy, we aren’t so sure just yet. To get a clearer picture, we’re breaking down what vibe-based budgeting is, why it’s becoming so popular, and whether it’s worth trying out for yourself.
What is vibe-based budgeting?
According to the Credit Karma survey, 44 percent of Americans are adjusting their financial habits, not necessarily because their income has changed, but because of the economic anxieties that are orbiting them. This approach, dubbed vibe-based budgeting, is all about making money moves based on emotional cues from news headlines, social media, and the world around us. You know, nothing too existential—just the steady hum of rising prices, mass layoffs, and daily recession indicator reminders.
At its core, vibe-based budgeting is a reaction to uncertainties that come from grim economic forecasts. More than half of survey respondents say that the economic news they consume influences the way they spend, and more than four in 10 Americans admit to practicing vibe-based budgeting—even when their finances haven’t severely changed.
With anxiety-triggering headlines leading the news every which way, this new strategy isn’t totally surprising. It’s a way for people to stay grounded in a world that often doesn’t feel… good. But it should come with a warning: Vibe-based budgeting can cause you to go into a financial limbo—caught between what your finances really look like and what it feels like you should be doing with your money, based on the state of the world.
What’s driving Gen Zers and millennials to budget based on “vibes”?
It’s no secret that Gen Z and millennials have grown up in a whirlwind of economic challenges. From the student debt and housing crises to a job market that feels like trying to survive The Hunger Games, stability feels like it keeps getting further out of reach. Not to mention, we’re the middle child to boomers, who bought homes for the price of brunch, and Gen Alpha, who figured out how to monetize their morning routine before we knew how to drive.
“Forty-four percent of Americans are adjusting their financial habits, not necessarily because their income has changed, but because of the economic anxieties that are orbiting them.”
Financial anxiety has become so baked into our everyday lives, and social media chatter only amplifies it. Fear-mongering about inflation, interest rates, and another potential crash only feeds into our insecurities. So even when our own finances are relatively steady, it’s hard not to feel like financial stress is imminent.
According to the Credit Karma survey, most people strongly believe that prices are rapidly increasing (44 percent) and that a recession is right around the corner (28 percent). Vibe-based budgeting, then, has become a survival mechanism—a way for us to brace for impact in a world that constantly makes us feel on edge.
How vibe-based budgeting can impact your finances
At its best, vibe-based budgeting could actually be a healthy form of emotional self-awareness. It encourages people to tune in to what’s happening in the world and prepare accordingly. It’s practicing the things a lot of us already do in other areas of our lives: knowing our stress triggers and listening to what our gut tells us to inform our next steps. If the economy feels shaky, pulling back on spending to prioritize saving could be a smart, intuitive move. It also helps create a sense of control and a weird sense of calm with your finances, even if the world is telling you otherwise. Looking at it from a surface level, there is never really any harm in reining in your spending.
“Treat your emotional instincts and financial reality more like a balancing act, where your feelings are informing your habits but not completely dictating them.”
On the flip side, vibe-based budgeting can get a little muddy. When applying this practice to our finances, relying too heavily on emotion in this context—especially a fearful emotion—can lead to overly cautious or reactive choices that can get in the way of any long-term money goals you may have. For instance, you may avoid investing or making an important purchase, even if you’re financially stable, just because the headlines feel grim. Overall, a vibe-based budget can make it harder to stick to a savings plan or build healthy and grounded financial habits over time, since your emotions can create a roadblock.
So, should you try vibe-based budgeting?
While vibe-based budgeting might reflect how a lot of us feel right now, the truth is… your budget shouldn’t solely be built on “vibes” alone. It’s totally fair (and smart) to be wary when the economy feels a bit shaky. And tightening your spending as a way to prepare for uncertainty can be a helpful anxiety manager. But letting economic vibes—as opposed to your actual income, expenses, or goals—drive the entirety of your bank account is not necessarily the most sustainable way to build financial security over time.
You should absolutely stay informed and trust your gut, but think of any emotions from recent headlines as more of a gut-check for your finances, as opposed to an actual game plan. Treat your emotional instincts and financial reality more like a balancing act, where your feelings are informing your habits but not completely dictating them. If you’re looking for a more bulletproof budgeting method, there are hundreds of beginner-friendly methods out there to experiment with. We personally love leaning on our trusty 50/20/20/10 rule or the 50/30/20 rule and believe these still hold up under economic pressures.
Madigan Will, Assistant Editor
As an Assistant Editor for The Everygirl, Madigan writes and edits content for every topic under the digital media sun. As the oldest of four siblings, she enjoys utilizing her big sister persona to connect and inspire readers—helping them discover new ways to maximize their everyday.
