3 Modern Spending Habits You Might Not Realize You Do
Written by
Karen Doyle
Edited by
Susan Kim
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Living within – or below – your means can feel like a constant battle. Even if you track your spending, regularly review your budget and have a savings plan, it may seem like you’re still not getting ahead. The reason could be some modern spending habits, and you may not even realize what you’re doing.
Here are three things that can work against you if you’re not careful.
Spending Money Based on Social Media
According to the Charles Schwab Modern Wealth Survey 2023, a third of people (33%) make purchases based on what they see their friends and influencers share on social media. Gen Z is the biggest culprit, with 55% saying their purchase decisions are based on the latest TikTok trend or other social media content.
Getting Financial Advice from Influencers
Like spending money, a third of people surveyed said they decisions based on what they see on social media. Again, GenZ is the most likely to do this, with 50% making investing decisions and 46% making financial decisions based on advice from friends or social media influencers.
Keeping Up With The Joneses
The idea of spending money you don’t have to fit in with your peers is not a new fad, but social media can exacerbate this unhealthy money habit. A recent study found that 30% of millennial and Gen Z consumers went into debt so they wouldn’t feel left out.
Bottom Line
Social media may not be the enemy of good financial habits, but it can pose a risk. When you’re constantly bombarded with influencers, friends and family sharing their most recent purchase or vacation, it’s hard not to feel like everyone has everything you don’t. But you’re not seeing the whole story or getting all the information.
Instead of making decisions without the whole picture, make financial decisions based on your situation and long-term goals. It’s fine to scroll through TikTok or Instagram to see trends and the latest ideas, but think twice before adding them to your cart if you want to reach your financial goals.
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