Financial Planners on TikTok's Worth-the-Money Trend

Not every worth-it purchase happens in a store. Reggie Fairchild, a CFP in South Carolina, says contributing to a workplace retirement account such as a 401(k) and collecting the employer match, when available, is always worth the money.

Term Life and Renovations

Some purchases fall in the middle. Planners said life insurance policies, which pay out to beneficiaries at death, are sometimes worth the money, depending on the situation. The two main types are term and whole. Term life insurance covers you for a set number of years and generally costs less. Erin O'Brien, a Florida-based CFP, says term coverage is especially worth it for a spouse and children who could not get by without your income. '[It's] so important to protect your family,' she says.

Whole life insurance covers you for life and builds a cash value you can access while alive. Schwab says these policies may be worth it for a narrow set of high-net-worth families. They are often marketed to young families as retirement plans. He calls them 'usually the most expensive way to invest for retirement' and probably not worth it.

Home renovations are often treated as investments, on the theory that they add more value than they cost. Schwab says many homeowners fail to recoup renovation costs when they sell. He suggests thinking of upgrades as 'worth it for the years you'll enjoy the space' rather than as a financial investment. A cooking enthusiast who plans to stay in the same home for a while could find a kitchen update well worth the cost, even if it does not lift the home's value much. 'The return is the years of enjoyment you get from the space, not money you'll ever see back,' he says.

Extended warranties on cars and home appliances drew mixed views. Some planners said they can be valuable, others said never. Joshua Brooks, a Texas-based CFP, says extended warranties are often unnecessary but 'can make sense if a repair would significantly disrupt your finances.' Brett Hina, a private wealth advisor in New Jersey, says it depends on the policy and the purchase it protects. A factory warranty may already cover the item, or the cost of the extended warranty can exceed the real protection it offers.

Fairchild sees clients who rent a storage unit during a move and rarely finds it worth the cost. People tend to use the units as a place for items they do not want to keep and cannot commit to getting rid of. 'Rent it if you need it, but put a real deadline on it, one season, then decide,' he says. 'The monthly fee isn't the price of storage. It's the price of not deciding.'

Unused subscriptions drew similar warnings. Several planners said memberships are only worth it when you actually use them, so audit your subscriptions regularly to avoid paying for ones you forgot about.

Purchases meant to impress others rarely pay off, especially when financed with debt. 'One of the biggest financial mistakes I see isn't a specific product, it's lifestyle inflation driven by comparison,' Hina says. 'Buying things primarily to signal success can make it harder to achieve genuine financial independence.' He puts luxury cars and designer-brand items that are not necessarily better quality in that group, along with a house bigger than you can afford. 'Spend generously on the things that genuinely improve your life, and be intentional about the things that don't,' he says.