As we wrap up 2024, it’s time to look back at some financial trends that captured attention but might deserve a permanent spot in our rearview mirror. From confusing AI financial advice to money dysmorphia, this year gave us plenty of examples of what not to do with our money.
As these and other trends evolved throughout the year, social media helped amplify both helpful and harmful financial behaviors. While some trends helped people build better money habits, others led to significant losses or unnecessary spending. Let’s look at which ones we should leave behind as we enter 2025.
In this article:
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Trusting AI for financial advice
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Overspending on the perfect organization
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Joining the memecoin mania
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Falling for questionable money hacks
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Slipping into money dysmorphia
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Getting trapped by phantom debt
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Giving into doom Spending
1. Trusting AI for financial advice
When Google launched its AI Overview in May 2024, things got weird pretty quickly. One day, it told us elephants walk around on two feet. The next, it suggested we should . And its financial answers weren’t any better.
I’ve spent quite a bit of time testing Google’s AI features with all sorts of financial questions, from basic stuff like “how do I open a savings account?” to trickier topics like retirement planning. What I found was troubling – while it got many answers right, it also dished out plenty of wrong information and sometimes even contradicted itself in the same response.
Here’s what makes this especially dangerous: when AI mixes correct and incorrect information, we tend to let our guard down. After reading three or four accurate statements, we’re more likely to believe that fifth point without questioning it, even if it’s wrong. And Google isn’t alone in this – I’ve noticed similar issues with other AI tools like ChatGPT, Claude and Meta AI. They all have moments where they sound completely confident while giving iffy advice.
For example, when asking about moving funds from a to a , Google’s AI Overview gave this confusing response in the same answer:
Then, it immediately contradicted itself with:
This type of contradiction isn’t just confusing – it could be costly. A study by found that Google AI provides inaccurate or misleading information in 43% of finance-related searches. That’s particularly problematic, considering that getting it wrong could mean paying taxes or penalties.
The problem worsens with complex topics like taxes, investing and student loans. While AI might handle basic “what is” questions well, anything requiring nuance or understanding of recent changes often results in outdated or incorrect information. That’s why you should avoid AI financial recommendations and instead get your information from reliable sources or consult a financial advisor.
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2. Overspending on the perfect organization
The that swept TikTok this year wasn’t just about tidying up – it became an excuse for excessive consumption. There are countless videos where people spend hundreds on clear containers and matching labels, all in pursuit of that perfectly arranged pantry or closet.
While these videos feel oddly satisfying, let’s break down an example of how costly this trend can be:
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Pantry jars, containers and bins: $200 to $300
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A closet system with matching hangers: $150 to $400
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Bathroom organizers and containers: $100 to $200
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Label maker and supplies: $50 to $75
That’s easily $500 to $1,000 spent on organizing products – money that could have gone toward an or . And the actual cost goes beyond just organizing supplies. For example, many people on the subreddit feel compelled to buy more items to fill their newly organized spaces or replace perfectly good products with aesthetic versions that match their new systems.
This means that over time, the cost of organizing can sometimes exceed the value of the food or items you’re organizing. That’s why you should simply keep products in their original packaging – it’s both financially smart and better for the environment.
Instead, direct your money and effort toward one of the . For example, if you save $1 this week, $2 the next week, $3 the week after and keep going for 52 weeks, you’d . That’s money you can put into a that provides you with a passive income stream of .
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3. Joining the memecoin mania
Memecoins are cryptocurrencies like bitcoin, but they focus on internet trends, jokes or viral moments. These digital tokens often lack any real purpose, making them one of the riskiest trends in crypto investing.
The December 2024 (HAWK) perfectly illustrates these risks. The coin was named after a viral TikTok catchphrase by internet personality Hailey Welch. After raising $2.8 million in pre-sales and briefly reaching a staggering market value of $491 million, HAWK’s value plummeted over 90% within hours of launch.
One X (formerly Twitter) user shared losing most of , writing, “I purchased your coin Hawk that you were so excited about with my life savings.” That investment dropped to $2,000 within 10 minutes of the memecoin’s launch.
This wasn’t an isolated incident. Throughout 2024, we saw multiple memecoins follow similar patterns: aggressive social media promotion, rapid price increases and then sudden crashes. The people behind these coins often target inexperienced investors and prey on FOMO (fear of missing out) and the promise of quick riches, while insiders typically get away with millions by selling their tokens soon after launch.
In the case of the HAWK coin, a group of insider investors controlled about 80% of the total token supply, according to crypto analytics firm Bubblemaps. These investors immediately sold the coin once it launched, with at least one netting more than $1.3 million in profits.
Instead of chasing highly speculative investments, consider putting your money into regulated assets like stocks or through brokerages like or automated robo-advisors like .
These companies make it easy to invest in low-cost funds that put your money in hundreds or thousands of companies across different sectors. While stock market investments can still lose value, they carry significantly less risk than memecoins and are regulated by the Securities and Exchange Commission (SEC).
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4. Falling for questionable money hacks
One of the troubling financial trends in 2024 emerged when social media users began sharing an that exploited a temporary system error at Chase Bank ATMs. By writing checks to themselves and immediately withdrawing funds before the checks bounced, people temporarily accessed money they didn’t have.
While some celebrated this as a clever hack, it led to serious consequences – Chase is now suing customers who owe nearly $662,000 in fraudulent withdrawals. Check fraud is a serious financial crime that’s punishable by fines, prison time or a combination of both.
But this wasn’t an isolated incident. Throughout the year, social media platforms filled with other dangerous loopholes. Some users promoted schemes like filing false tax returns by misrepresenting business expenses or manipulating store return policies through fake receipts. While these might seem like victimless crimes, they often constitute fraud and can result in serious legal consequences.
Instead of risking legal troubles with questionable financial hacks, look for legitimate ways to , from for 2025 to that does the work for you.
With the tax season quickly approaching, you can use one of the to find legitimate deductions like charitable contributions, medical expenses that exceed 7.5% of your adjusted gross income or qualifying business expenses if you’re self-employed.
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5. Slipping into money dysmorphia
Money dysmorphia is that nagging feeling that your finances aren’t good enough, even when your bank account says otherwise. Just like someone with body dysmorphia might see flaws in their appearance that others don’t notice, people with money dysmorphia feel financially inadequate despite having stable finances.
It turns out this financial anxiety is pretty widespread. In a survey, Credit Karma found that nearly a third of American adults deal with it. And younger folks are really feeling the pressure, with about 43% of Gen Z and 41% of millennials experiencing these money worries. Compare that to just 14% of people over 59, and you can see how this mindset is hitting younger generations especially hard.
Social media plays a large role in worsening the problem when every time you open Instagram or TikTok, there’s someone showing off their luxury vacation or designer shopping haul. An Edelman Financial Engines study found that a third of people are overspending just to keep up with these “digital Joneses.” And if you spend more than three hours a day scrolling? That number jumps to over half.
To combat money dysmorphia, start by limiting your social media time and unfollowing accounts that trigger financial anxiety. Focus on defining what financial success means for you personally – not what you see online. Some people find it helpful to track their actual spending and saving progress, which can provide a reality check when those feelings of financial inadequacy creep in.
6. Getting trapped by phantom debt
Phantom debt is debt that’s old, was already paid off or never existed in the first place. But that doesn’t stop aggressive collectors from trying to bring these financial ghosts back to life.
For example, the Federal Trade Commission (FTC) had to step in and stop Global Circulation, Inc. from collecting over $7.6 million in bogus debts in November 2024. This firm, which operated under several other fictitious names, was calling people and threatening everything from arrest to wage garnishment if people didn’t pay debts they didn’t actually owe.
What makes these schemes so tricky is that the scammers often have just enough personal information to sound legitimate. The FTC stated that Global Circulation called its victims several times a day, reached out to their family members and left urgent voicemails making it sound like they were in serious trouble.
However, legitimate debt collectors have to follow strict rules under the Fair Debt Collection Practices Act. They can’t threaten you with jail time, they have to tell you upfront that they’re debt collectors and they need to prove the debt is real if you ask, among other regulations.
That’s why you should always send a debt validation letter to any collection agency that attempts to coerce you into paying a debt you never had. The Consumer Financial Protection Bureau (CFPB) provides you can use to verify what you owe and why you owe it.
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7. Giving into doom spending
You may have heard of doomscrolling – endlessly reading bad news online. Well, meet its expensive cousin: doom spending. It’s what happens when people shop impulsively to cope with anxiety about things like politics or the economy.
The 2024 holiday season saw a sharp increase in doom spending. A Simon-Kucher study found that Gen Z planned to spend 21% compared to the holiday season in 2023, way more than other generations. According to the study, this isn’t just because they’re starting to earn more money – it’s about trying to find some comfort in an uncertain world.
Doom spending can create a vicious cycle. Feeling anxious leads to shopping, which leads to money stress, which leads to more shopping to feel better. With credit card delinquencies at their highest point since 2011, this emotional spending pattern has left many people struggling with mounting debt.
Instead of opening a shopping website when you’re feeling worried about the world, pause and ask yourself what you’re really seeking. Is it comfort? Connection? Control? I’ve learned that calling a friend, gardening, watching my favorite show or even writing down my worries often gives me better emotional relief than shopping and without the financial hangover.
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5 positive financial trends worth keeping in 2025
While some financial trends deserve to fade away, several movements on showed real promise. According to Chime’s survey data, Americans found an average of 44% of #FinTok trends to be successful. These healthy trends include:
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Cash stuffing. Instead of letting money float around digitally, people who use this envelope-based budgeting method take cash and place it into labeled envelopes marked groceries, fun money, car repairs and so on. By using physical cash, 17% of the survey respondents reported becoming more mindful of their spending and less likely to overspend on impulse purchases.
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Loud budgeting. Gone are the days of whispering about money. Loud budgeting promotes openly discussing saving goals and spending limits with friends and family. This transparency helps normalize conversations about money and develops a sense of accountability. The trend aligns with survey findings showing 76% of Americans are now open with loved ones about their financial planning efforts.
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Girl math (when used responsibly). This trend playfully justifies purchases through various means. For example, you can divide the cost over time or use – like saying a $100 jacket is free if you wear it 100 times because it’s just $1 per wear. While the math might make accountants cringe, there’s actually some wisdom hidden in the humor. When applied thoughtfully, it can help you think about the real value you’ll get from your purchases over time.
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De-influencing. This counter-trend encourages its followers to resist unnecessary purchases and marketing pressure, working as an antidote to all the “must-have” product recommendations flooding social media. It fits with broader survey findings showing Americans are becoming more selective about financial advice sources, with 52% now fact-checking #FinTok information.
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No-spend challenges. According to Chime’s research, 20% of Americans tried no-spend challenges in 2024. These voluntary periods of minimal unnecessary spending help people reset their relationship with money. For example, you can commit to zero online shopping for a month or no takeout for a week as a form of financial cleanse.
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About the writer
is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia’s expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
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