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What TikTok’s ‘underconsumption core’ trend means for your money

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2 years ago

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Sophie Hinn with a pencil holder her mom made out of trash.

Courtesy Sophie Hinn

Using only one water bottle. Finishing that tube of makeup before buying another. Owning furniture that’s been passed down through generations.

This isn’t the lifestyle that social media influencers promoting their Amazon storefront or their brand discount codes show. So-called “underconsumption core,” however, is one of the latest personal finance trends to go viral on TikTok, with many videos about the topic receiving millions of views.

On social media, the “core” ending is often used to describe a shared aesthetic among users. Non-personal finance examples include cottage core and goblin core. Underconsumption core showcases the old items that people are still using.

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The trend is coming into play at a point when consumers feel increasingly cash-strapped.

“I think it’s romanticizing being middle class,” real estate agent Sophie Hinn of Okoboji, Iowa, told CNBC.

She has posted about how she embodies the trend, including using old towels for cleaning rags and filling her home with furniture that’s “thrifted, gifted, repurposed, [or] family hand-me-downs.”

‘Wrong to throw away perfectly usable things’

Maya Feldman with her old hairdryer.

Courtesy Maya Feldman

In a July video — one of the first using the term “underconsumption core” — 18-year-old Maya “Liu” Feldman from Germany shows the old hair dryer she still uses, and clothes from seventh grade and holey jeans she still wears.

Feldman’s TikTok immediately went viral, racking up more than 436,500 likes and 2.3 million views. Many users commented that they lead a similar lifestyle or that they were motivated to spend less after watching Feldman’s video.

“I didn’t really have a lot as a kid, and it kind of gave me this mentality of it being wrong to throw away perfectly usable things,” Feldman told CNBC.

The underconsumption core trend follows other recent pushes on social media to normalize not spending, such as “loud budgeting” and “de-influencing.”

“This one just puts a little bit more emphasis on upcycling items,” sustainability influencer Sabrina Pare told CNBC. A video showcasing her version of the trend — including the “7+ years old” leggings she still wears, and how she cuts open makeup products to “get every last drop” — received 210,600 likes.

She said de-influencing “was just focusing on not buying, and this was more focused on using what you have.”

Underconsumption or normal consumption?

Some creators have also argued that underconsumption core should instead be called “normal consumption core” because some of the behaviors frequently shown in the videos, such as reusing items, are a part of many people’s everyday lives. 

“With TikTok Shop and just people always trying to sell you something, I think it’s refreshing for people to see [that] other people don’t consume,” Hinn said.

Still, it’s possible for the underconsumption core trend to go too far, said Douglas Boneparth, a certified financial planner and the founder of Bone Fide Wealth, a wealth management firm based in New York City. He is also a member of CNBC’s Financial Advisor Council.

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He pointed to the Financial Independence, Retire Early movement that gained popularity a few years ago as another example of people wanting to save money. Followers of the movement aim to save up to 75% of their income, often sacrificing current comforts for the goal of exiting the workforce early.

“The flip side is if you get too caught up in that, are you basically sucking the joy out of things?” Boneparth said. “Are you not allowing yourself to actually partake in some of the more fun or frilly things in life? If you’re in the extreme camp of each, neither is good.”

‘The key word in personal finance is personal’

Hinn, Feldman and Pare all showed different interpretations of underconsumption core in their TikToks. Also, none of them expressed interest in changing their lifestyles much because they felt they already had the underconsumption core mindset, even if the term didn’t exist yet.

“I think [sustainability] is definitely a part of my everyday life,” Pare said. “It’ll always be a part of my content.”

Still, she said she’s curious if people will be using the term “underconsumption core” a few months into the future.

While the videos about underconsumption core can serve as inspiration for how to save money, Boneparth emphasized that the strategies they promote shouldn’t necessarily be immediately adopted. It’s smart to assess how a certain change fits, and what kind of benefit you may see from the effort.

Even when the underconsumption core trend fades out on social media, a balanced financial lifestyle will still be important, he said.

“The key word in personal finance is personal,” Boneparth said. “The ultimate goal should be finding the thing that works for you that allows you to be consistent and allows you to be disciplined, whether we’re talking about savings, investing [or] the accumulation of assets.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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7 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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