How Social Media can affect your Finances

Social media helps us stay connected, spot trends, and enjoy memes—but it can also hurt your wallet. FOMO (fear of missing out) may push you to overspend just to keep up online, leading to risky financial habits. By recognizing how social media affects your money, you can break the FOMO cycle and make smarter choices.

Scrolling influencers might be fun, but social media can quietly drain your wallet. Platforms like Facebook, Instagram, Twitter, or Snapchat often shape how you spend—and can leave your bank balance hurting. Here are some of the hidden financial risks to watch for.

TOO MUCH SPENDING

Social media can fuel impulsive spending—whether it’s keeping up with trendsetters or shopping to fill an emotional void. Maybe your favorite beauty influencer promotes a $50 compact or a $150 face cream, and suddenly you feel like you need it too.

What you might not realize is that many influencers are paid to advertise these products and didn’t buy them themselves. That’s where the trap lies: it’s easy to think, “everyone’s doing it, so I should too,” and overspend in the process.

IT'S THE LATEST THING! 

Ever bought something just because it popped up in your feed? That’s one way social media keeps you broke. Ads and trends make products look life-changing, but once the hype fades, you’re left with less cash and stuff you don’t need.

Not every link you see on social media is safe. Scammers often disguise phishing links as ads, giveaways, or even messages from friends. Clicking one could expose your personal information, banking details, or passwords, making you an easy target for fraud. Once cybercriminals have your information, they may use it to steal money, make unauthorized purchases, or even commit identity theft in your name. That’s why it’s so important to be cautious before clicking, double-check the source, and avoid sharing sensitive information on platforms that aren’t secure.

DISTRACTIONS FROM MORE IMPORTANT FINANCE DUTIES

Spending too much time on social media can distract you from managing your finances and sticking to a budget. We support the 50/30/20 rule of budgeting; 50% Fixed Costs such as rent, vehicle payment, utilities, 30% Flexible Spending for entertainment, shopping, clothing, and hobbies, and 20% Financial Goals putting aside money for Vacation, Retirement, Emergency Fund. Without a budget, it’s easy to lose track of expenses and fall into FOMO-driven spending.

Ignoring your budget can also mean ignoring your debt. Social media–inspired purchases may pile up on credit cards, and by the time you pause to review your finances, you could be facing a stack of bills.

ARE YOU AUDITIONING FOR THE "BEST LIFE" SHOW?

The people you follow online can influence how you spend. Seeing friends with luxury cars, big homes, or lavish vacations may tempt you to keep up—even though you don’t know their true financial situation. They might be deep in debt or getting family help.

Trying to copy their lifestyle can strain your finances, but building financial discipline lets you enjoy life without added stress.

TIPS TO HELP GET SOCIAL MEDIA BUYING UNDER CONTROL

• Make sure any purchases you make are in your 50/30/20 budget
• Focus on managing your finances - download a helpful budget app or create an old-fashioned spreadsheet
• Unfollow the trends - removing these Influencers may be hard, but watching funny cat memes could be just as rewarding
• You see something you really like, WAIT. Delay purchasing for a few days and see if the urge goes away.
• Limit screen time - this is a benefit for many reasons, not just your finances
• Ask yourself - is this FOMO? Take a step back and evaluate why you really want it.