Using social media frequently can have a significant impact on how we feel and our pockets. It is not a discussion of whether social media affects our spending habits, but rather how and at what cost.

Are rising social media ads to blame? Do you give in to peer pressure to please your friends or to avoid missing out? Do targeted advertisements that use your data and prey on your lack of self-control tempt you? Has the ease of shopping online forced you to spend more money than you can afford? All of the above is correct! Let’s take a look at how social media affects spending habits.

The Impact of Social Media on Spending Habits

It can be challenging to balance spending habits with social media usage. On social media, you are inundated with advertisements from businesses and influencers within a matter of seconds. Because of the connection that exists between influencers and brands, it can occasionally be challenging to distinguish what is an advertisement from what is not. A big part of the battle is understanding how social media and our spending habits interact. Here are ways social media affects spending habits.

FOMO (Fear of Missing Out) and Peer Pressure

When you look at the world through the prism of social media, it may appear that everyone is always winning, dining out, and sporting the priciest activewear brands and vehicles.

We are driven by a desire to achieve social success by adopting the actions and spending patterns of role models. Additionally, we continue the cycle by using social media posts to show off our wealth, style, and deservingness to our followers. This plays a major role in our spending habits.

Targeted advertising and user data mining

There is an adage that states, “If you don’t pay for the product, you are the product.” Mark Zuckerberg spent years figuring out how to turn social media into a profitable venture. In the end, Facebook took the fundamental tenet of advertising and introduced a fresh layer of value: mining user data.

We consent to Facebook’s terms of service when we sign up, allowing the app to save our data and monitor our online activities. It’s not by chance that you see a sponsored post or advertisement on Facebook. With the help of all this data, Facebook has developed an algorithm that predicts our interests and potential purchases.

A seamless, one-click shopping experience

Customers appreciate the ease of online shopping from social media apps. Despite privacy concerns, many users claim that targeted content presents them with goods that are pertinent to their interests.

Users no longer need to exit the Facebook app to make a purchase. Facebook has shortened the funnel, making it incredibly quick and simple for consumers to spend money without hesitation.

Online Gaming

There are a lot of fascinating games on the internet. Statistics have shown that, in a day, an average Canadian spends 6 hours using the internet in general. Part of the things people do is go over social media feeds, send emails, chat with friends and also play games online. For those who are addicted to gaming, spending money to buy more lifelines or have access to a ‘superpower’ to continue or win the game isn’t considered a thing of concern since it’s just a few dollars. However, little drops make a mighty ocean. Putting together those few dollars in a year could run into hundreds of dollars.

Impulse Shopping

If social media boosts your ego by drawing attention to you, you’ll do whatever it takes to get more of that positive attention. Users of social media spend more than they can afford to receive favourable comments from their followers or friends.

In the end, only you will know how social media affects your spending patterns. It might be more difficult for people with prior issues with impulse control to resist temptations present in their social networks.

How to Use Social Media to Its Full Potential Without Breaking the Bank

Most people find it difficult to cope with the social media images of flawless lives, extravagant purchases, targeted and sophisticated advertising. Although it’s simple to succumb to the pressure, doing so is extremely damaging to your finances. However, it is not a sure bet that you cannot be on social media without excessive spending.

The following four actions will help you safeguard your finances:

Cut back on your screen time.

Reducing your online time will lower your exposure and risk of overspending because time spent on social media is correlated with spending. Set a timer or restrict your browsing to specific hours of the day. As the day wears on, your moral character tends to deteriorate. This makes late-night scrolling the most hazardous.

Make a budget

You can stay within your means by setting a budget and determining how much money you can spend on luxuries. Budgeting walks with discipline or self-control. You may create a budget and not follow it, thereby defeating the aim for which the budget was created.

Avoid comparing yourself to others

Even though this is difficult, it is possible. Realize your worth by taking a look inside. You don’t need what other people have to be happy; it won’t work. You cannot find happiness through money or the things that it can buy. Happiness starts from within.

Change the things you focus on

Change who you follow or tweak your feeds so that they only contain people or things that interest you or make you happy. Avoid websites that make you feel left out and instead focus on what makes you happy.

Final Thoughts

Keeping one’s spending in check is difficult for many people. If you fit into this category, it’s crucial to understand that social media is probably not helping your finances in any way. The best way to combat FOMO-inspired spending is to strike a balance between spending money on frivolous purchases and investing in your long-term financial goals.

If you are in debt due to overspending or the challenges of life, you should reach out to us at EmpireOne Credit. We have trained debt experts that will guide you in getting a hold of your finances. We help people in Ontario to know which debt solution is suitable for them, whether it is a consumer proposal, debt consolidation, or bankruptcy. Book a free consultation with us today.