Social media influences your spending habits. Social media use can increase feelings of jealousy, insecurity and isolation — which often lead to overspending or feeling like your financial life isn’t up to par with your peers. A Deloitte report highlighted that consumers who are influenced by social media are 4 times more likely to spend more on purchases. Here are four ways our spending habits are affected by social media.
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How social media affects our spending habits
Fear of missing out (FOMO)
Social media creates a tendency among users to compare their lifestyle to those of others. This comparison can trigger a fear of missing out or FOMO, leading us to buy and consume just to fulfil the urge to keep up with everyone else.
Additionally, we use social media posts to demonstrate our affluence, style and worthiness to our followers, perpetuating the cycle.
Targeted ads
You know exactly what I’m talking about. You googled a specific pair of sunglasses on one device and now you’ll see Facebook ads for said brand every time you log in for a month straight. Brands wouldn’t pay for this ad space if they weren’t earning a return on their investment. I’m sure you aren’t surprised that targeted marketing can influence your spending habits. The key here is to be aware of this strategy and ensure you’re sticking to your budget anyway.
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The selling of your data
How often have you logged into Facebook or opened your web browser and seen ads for your favorite band or the power tools that you need to finish your house renovations? Pretty often right.
When your data is sold you’ll also see advertisements for products others have purchased with browsing and buying history similar to yours. Your search for a new pair of sunglasses might turn into you buying a hat, sunglasses, and a new koozie for the pool.
Social media stores, seamless shopping experience
Social media platforms can also encourage spending by providing a seamless shopping experience. For example, Facebook enables retailers to sell on the platform itself, and Instagram lets them add links to products and services mentioned in their posts so users can purchase them online. This makes it extremely easy to spend.
Influencers
Whether it’s a picturesque vacation or a new outfit, many people share the highlights of their lives on social media. Scrolling through these posts can foster feelings of insecurity or jealousy, and you may be compelled to spend money to feel better about your own life.
Brands now partner with influencers who feature their products and services in posts and videos that are more entertaining. Consumers are more likely to buy when they get recommendations from a person they trust.
Read: How to save while enjoying life
How to enjoy social media without breaking budget
Social media has wormed its way into most aspects of our lives. It’s how many adults make friends, find dates, and even build career networks. Which presents the question — how to enjoy social media without breaking budget?
Read: How to Budget Like a Pro
Limit your screen time
Time is money, as they say – and they are right about this one.
Set a timer or only peruse during certain times of the day. Your moral fiber tends to deteriorate as the day goes on. Late night scrolling is the most dangerous for this reason.
Create a budget if you don’t already have one
If social media is making you overspend, creating a budget should be the first solution you try.
A good budget should have space for things you want to buy and the experiences you want to have in the near future, but it should also consider future goals. This can include starting a business, going back to school or buying a house.
Read: How to create a zero-based budget
Adjust what you look at
Consider muting or unfollowing accounts that make you feel bad, even if it’s someone you like in real life. Instead, follow people and blogs that represent hobbies and interests. I love sewing, so I’ve started following more fabric brands and sewing bloggers. I feel inspired when I see these posts.
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Log out of apps
Have you ever found yourself browsing TikTok, only to realize 30 minutes later that you originally picked up the phone to call your friend or respond to a text? Social media can be a mindless activity, and it’s easy to spend an hour on Instagram without realizing it.
One way to break this habit is by logging out of social media apps after you use them. You’ll have to type in your password the next time you want to log in, which is a surprisingly effective deterrent. Adding just one more barrier to the process can stop you from logging on as frequently, giving you the opportunity to pause and decide if social media is really how you want to spend your time.
Consider taking a break
If you’re facing dire straits when it comes to social media spending, it might be time to say goodbye – even if not forever. Getting some space from social media could be a game-changer for your online financial life, not to mention your life life.
More buyers are now on social media networks than ever before. Consumers are looking for reviews and recommendations.
Be careful which bloggers and influencers you’re following as well. Most of them make money by shilling products and earning referral bonuses when a follower buys something from one of their links.
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