Social media has had a profound effect on the way we interact with the world. In just a few short years, it has completely transformed the way we communicate and connect with others. It’s also had a major impact on our spending habits. In this post, we’ll explore some of the ways in which social media can impact its users’ purchasing habits, and provide a few top tips to keep your spending in check.
The effects of social media on spending habits
With constant exposure to ads and promotions, it’s no wonder that we’re spending more money than ever before. In fact, 49% of millennials have purchased a product or service directly from social media, whilst 56% of people admitted to having bought a product after seeing it being used by an influencer.
While social media can be a great way to stay connected with friends and family, it’s important to be aware of its potential impact on your spending habits.
How can social media lead to overspending?
Whether we’re scrolling through Instagram or Twitter, we’re constantly being exposed to temptation, making it all too easy to overspend. But how exactly does social media lead to overspending? Let’s take a look at a few examples.
- Targeting ads. Social media is incredibly good at targeting ads to us based on our interests and past purchasing behaviour. So, if we’ve been window shopping for a new piece of jewellery, we’re likely to see ads for similar products on our feed. These targeted ads can be very persuasive, and before we know it, we’ve clicked through and made a purchase.
- Fear of missing out. These platforms also make it easy to compare our own lives to others’. We see what our friends and acquaintances are buying and doing, and it can create a sense of FOMO (fear of missing out). We may feel like we need to keep up with our peers, or even influencers, by buying the same things they are, even if we can’t really afford it.
- Convenience. Finally, many social media platforms have built-in payment options that make it extremely easy to buy something without really thinking about it. With just a few clicks, we can have whatever we want delivered right to our doorsteps – no planning or budgeting required. And while convenience is great, it can also lead us to overspend on things we wouldn’t have otherwise bought.
Tips for staying mindful of your spending
It’s important to be mindful of how these platforms can influence our spending habits, especially if we’re not careful. Here are a few tips to help you stay on top of your finances:
- Make sure you’re aware of the ads you’re seeing. Just because an ad is targeted at you doesn’t mean you need to buy what it’s selling. Take a step back and evaluate whether or not you really need or want the product before clicking “buy.”
- Be cautious of impulsive purchases. It can be easy to get caught up in the moment and make a purchase you later regret. If you’re feeling the urge to buy something, don’t act impulsively – give yourself some time to think about it. Odds are, you probably don’t need it.
- Set a budget for yourself and stick to it. Before you start browsing, set a spending limit for yourself so you don’t go overboard. Once you’ve reached your limit, log off and walk away until another day.
By following these simple tips, you can help keep your spending in check and avoid financial pitfalls down the road.