What is ‘vibe-based budgeting’? Over half of Gen Zers and millennials are doing it

To say Americans are grappling with economic uncertainty is an understatement. From boomerang tariff policies to the high cost of living, inflation, and mass layoffs, many people are increasingly worried about the economy and their ability to stay afloat.

One way that’s affecting Americans? Their budgeting habits—with many now engaging in what’s called “vibe-based budgeting,” according to a report from Intuit Credit Karma. Here’s what to know.

What is vibe-based budgeting?

New data from Intuit Credit Karma showed that 44% of Americans have engaged in vibe-based budgeting—adjusting their spending and financial habits based on “how the economy feels,” even if their personal financial situation hasn’t actually changed. Over half of younger Americans admitted to budgeting this way (56% of Gen Zers and 57% of millennials).

That mindset is tied directly to recent news about the economy, both on and off social media, according to Intuit Credit Karma. The data showed many Americans believe that prices are climbing rapidly (44%), their finances are unstable (34%), and a recession is just around the corner (28%)—with 61% reporting they are more anxious about the economy now than they were a year ago.

A bleak picture but a better reality

In contrast to that bleak economic picture, when survey respondents were asked to drill down on their own finances, half (51%) reported having a positive monthly cash flow, and nearly three-quarters (72%) replied their cash flow has actually improved or stayed the same over the past six months. However, 48% said that media coverage and changing economic conditions have made them second-guess their financial standing.

In short, the findings show a gap between how those surveyed feel about the state of the economy and the future, versus how they are actually doing financially.

It also showed that their anxiety over the economy is making them more deliberate about how they manage their money, with 45% of those concerned about the economy reporting they have cut back on nonessential spending such as eating out, and 38% avoiding new debt or loans.

The good news is that those who have adjusted their budget have a more optimistic outlook: 38% said they expect their financial situation to improve in the coming year.

The Intuit Credit Karma findings are based on data from a Qualtrics online survey that ran last month from June 13 to June 17, among 1,058 adults ages 18 and older.