As the cost of living and economic downturns are putting pressure on people to save money and secure their financial futures. As a result, they are seeking money-saving tools and strategies, and some fintech companies are already offering innovative solutions.
Earlier this year, Pinterest released their Pinterest Predicts 2023 report which showed the top trends being shared by users on the platform. While many people associate Pinterest with fashion and beauty trends, the report revealed that users are also interested in personal finance topics.
Driven mainly by young Millennials and GenZ, a new trend has emerged and it’s called the “Cha-ching challenge”. This trend is all about saving money and achieving financial goals and came on the back of the rising cost of living, economic uncertainty, and changing job market have left many people feeling anxious about their financial futures.
According to Pinterest Predicts, searches for “money challenges” saw an over 100% increase the past year alone.
One example of this trend is the “No Spend Challenge,” where participants commit to not spending any money on non-essential items for a set period of time, usually a week or a month. Another popular version is the “52-Week Money Challenge,” where participants save a small amount of money each week, gradually increasing the amount over the course of the year.
The concept is simple — set a financial goal, track your progress, and share your successes with others on social media. Then, they share their goals on the platform in form or “pins” — that could be video or photos.
Young millennials and Gen Z are driving this trend
The “Cha-ching Challenge” gained momentum with young millennials and Gen Z’ers for many reasons.
Firstly, it appeals to Gen Z and younger millennial consumers tend to be financially conscious and looking for ways to achieve financial stability. According to this article from Fortune, Gen Zers without families prioritize short-term goals like paying off debt and building emergency funds over saving for retirement.
Also, the social aspect of the “Cha-ching Challenge” is driving the trend even further. People are sharing their progress and successes on social media, creating a sense of community and encouraging others to join in — it’s fun, engaging, and highly shareable.
How fintech companies can leverage this trend
So, how can fintechs leverage this trend? Which features would be appealing for this young demographic?
Here are some of my suggestions
Offer gamified savings features: Creating gamified savings features that incentivize users to save more money. For example, offering rewards for reaching savings milestones or using visual elements like progress bars or badges to show users how close they are to achieving their savings goals.
For example, an app could offer users a reward for saving $100. The reward could be a virtual badge, a discount on a product or service, or even a cash prize.
Integrate with social media platforms: Companies can integrate their savings features with social media platforms like Instagram or TikTok, allowing users to share their progress with their friends and followers.
For example, an app could allow users to post their savings goals on social media. This would allow their friends and followers to see their progress and offer support.
Collaborate with “Fin-fluencers”: Companies can partner with influencers, especially on TikTok, to promote their savings products and services. These influencers could share their own experiences with the “Cha-ching challenge” trend and encourage their followers to join in.
During the pandemic, people were thinking about saving more money, so it was a good time for companies to start. Even if we don’t know what the future holds for TikTok in the U.S and other countries., one thing is for sure — it’s already made a big impact on the financial sector. TikTok has made it super easy for people to find educational content about managing their money, and that’s created a big opportunity for a new generation of creators to share their knowledge and build their businesses.