Social media can be a scary place.
Well, that is, if you’re living through “unprecedented times” (like every millennial has been for almost their entire lives).
And if you’re like me and been scrolling through social media lately, you’ve probably seen the memes about recession anxiety mixed with genuinely concerned posts about the economy. What does it all mean? And how are Trump’s policies actually going to impact us all. Those are all questions that I’ve asked myself, and it doesn’t help that everyone from the TikTok financial advisors to the aunties on Facebook seem to have an opinion about whether we’re heading toward economic trouble (spoiler alert: we are).
And honestly? Most of us millennials barely remember navigating the 2008 recession as actual adults. I was 19 then, living my best 19 year old life I might add, more worried about my college meal plan than understanding inverted yield curves. Now at 37, with adult responsibilities and a mortgage (hello?!) the prospect of a recession hits differently.
We’re Not in 2008 Anymore
The 2008 financial crisis seems like a distant memory, but truthfully it was only 17 years ago. The economy collapsed primarily due to the housing market bubble bursting and predatory lending practices. But our financial world looks drastically different now.
For one, social media wasn’t the consumption engine it is today. Instagram was years away from existence. TikTok wasn’t even a concept. Today, these platforms drive spending habits in ways we couldn’t have imagined—with “TikTok made me buy it” becoming both a trending hashtag and a legitimate budgeting concern. Don’t even get me started about how much I spend monthly on things that TikTok has influenced me to buy.
According to data from the Federal Reserve, American consumer debt reached an all-time high in February 2025, topping $18 trillion, and the the average family owing over $100,000. That’s nearly 30% higher than pre-pandemic levels. The ease of one-click purchasing, buy-now-pay-later services, and influencer-driven consumption has transformed how we spend money—and how vulnerable we might be in an economic downturn.
Warning Signs to Watch For
So what should we actually be paying attention to in 2025 that might signal trouble ahead?
First, the job market. When companies start implementing hiring freezes or conducting layoffs, that’s usually not great. The U.S. Bureau of Labor Statistics reported that job growth has seen the slowest first-quarter growth since 2020 (when a massive 14 million jobs were lost that March) and averaging 152,000 jobs per month. Tech companies have already announced over 95,000 layoffs last year, and growing into 2025. If your LinkedIn feed is suddenly full of “Open to Work” banners, that’s worth noting.
Interest rates matter too. The Federal Reserve has been playing an economic game of Jenga, trying to balance inflation concerns with economic growth. If they keep rates high for too long, borrowing becomes expensive and economic activity slows. As of April 2025, mortgage rates hover around 7.6%—not catastrophic, but certainly more painful than the 3% rates we saw just a few years ago.
Housing markets provide another clue. When home prices stagnate or drop while inventory increases, that can signal trouble. In several major metro areas, homes are sitting on the market longer now than they have since 2019, according to recent data from Redfin.
Your everyday expenses offer hints too. While official inflation numbers might be moderating, if you’re still experiencing sticker shock at grocery stores or restaurants, that’s your personal inflation rate talking. The average price of everyday items like eggs, coffee, and gas provide real-world economic indicators that sometimes outpace official statistics.
How This Time Is Different
What makes 2025 unique is how our digital lives create both new vulnerabilities and opportunities during economic uncertainty.
The gig economy, which barely existed in 2008, now provides income buffers for many. Approximately 36% of American workers participate in gig work, according to recent Pew Research. That flexibility might help some weather job losses better than previous generations.
Our spending habits have also dramatically changed. The average American now spends about $213 monthly on subscription services alone—streaming platforms, meal kits, monthly clothing boxes—expenses that didn’t exist for most people during the last major recession.
And perhaps most concerning, social media creates financial pressure previous generations didn’t face. The constant parade of vacation photos, home renovations, and designer purchases creates a keeping-up-with-the-Joneses effect on steroids. During economic hardship, this digital consumption culture might make adjusting lifestyles especially difficult.
Preparing Without Panicking
The reality is that economic cycles are normal. Recessions happen. But unlike our younger selves in 2008, we have tools and knowledge that can help us prepare.
Building an emergency fund remains critical advice, whereas you should be aiming for 3-6 months of essential expenses. But being realistic about what “essential” means in 2025 requires honest self-assessment. Is the premium Spotify subscription truly essential? Maybe. The weekly DoorDash habit? Probably not. I’ve even had to let some of my favorites go, and consolidated to using my mom’s Netflix account (though sadly, I keep getting kicked off because I’m not apart of the “main household.”)
Diversifying income streams provides another buffer and opportunity to stuff some extra cash away. If you don’t know where to start, or don’t think you can monetize your hobby, think again. You can make money doing just about anything, or even sell any items you don’t use! Think strategically. Whether that’s freelance work or selling skills on platforms like Fiverr, having multiple income sources creates safety nets our parents rarely had.
Perhaps most importantly, we need to reconsider what financial success actually looks like. The constant consumption showcased on social media represents a distorted reality. Economic uncertainty offers a chance to realign spending with actual values rather than keeping pace with carefully curated online personas.
As we watch for recession indicators in 2025, we’re doing so with both more vulnerability and more resources than generations before us, and that’s the only way we’ll be prepared when this thing fully hits us all.