Rachel Cruze: 3 Ways the Algorithm Sabotages Your Spending (and What To Do)
Written by
Ashley Donohoe
Edited by
Zuri Anderson
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Deloitte’s 2025 Digital Media Trends survey found that the average American spent just under one hour per day on social media, with Gen Zers and millennials putting in the most time. While you might think you’re just entertaining yourself and passing some time, your scrolling habit may be influencing how much money you spend and save.
In a recent YouTube video, personal finance expert Rachel Cruze discussed three ways that social media algorithms sabotage your spending. She also gave helpful advice on avoiding unnecessary purchases that can arise from social media use.
It Knows Your Weaknesses
After interacting with a random post, you might have noticed that your feed suddenly became filled with similar content. If so, you’ve witnessed how social media platforms use your data to figure out your weaknesses.
As Cruze explained, you’ll see more and more of the content that these platforms think you’ll like and engage with. This can impact your spending if these posts tempt you to buy products or lead you into the comparison trap when you see influencers showcasing their fancy lives.
It Makes You Fear Missing Out
“Because the algorithm knows what you’re interested in, it’s going to fill your feed with all of these posts, which is going to make you start to feel like everyone on Earth is doing X, Y and Z,” Cruze said.
You might start to adopt an unrealistic view of life that drives you to splurge on a certain product, like a gadget or beauty accessory, or take an exotic vacation so you don’t miss out on what everybody else supposedly has. Cruze gave an example of how a mushroom coffee had left her wondering whether she should also try the drink for its supposed health benefits.
It Showcases What You Never Knew Existed
While endlessly finding new things is part of the fun of social media, it can also become a financial trap.
Many of the products and services you see are likely nonessentials that you would’ve never thought about if you didn’t come across that random post or video. Cruze mentioned Stanley cups as one example, and a more recent one is the Labubu doll craze.
In some cases, you can even buy these viral items directly on your social media apps, which makes it easier to overspend on impulse purchases. A 2024 Salsify report found that around one-third of shoppers had made purchases that way.
How To Protect Your Finances
To avoid letting social media algorithms lead you to make poor spending decisions, keep these three tips from Cruze in mind.
First, pause whenever you’re thinking of buying something from social media, as you might just be caught up in an adrenaline and dopamine rush. Cruze discussed how she left some clothes in her cart for an upcoming trip for a few days and ended up only buying half of those items.
Next, consider whether that item is really new to you and unlike anything you already have at home. For example, if you realize you own a similar shirt or pair of shoes, that potential purchase likely won’t seem so exciting anymore, and you might decide to save your money.
Finally, Cruze suggested considering more extreme moves, such as avoiding certain apps or websites for a while or at least unfollowing accounts that negatively affect your spending. You can revisit the decision once you understand the impact on your budget.
“If you don’t have that source to go back to over and over again, there is a level of contentment and peace when you just don’t know anything and everything that’s out in the world,” Cruze added.
More From GOBankingRates
