Most of us spend hours scrolling through our social media feeds each day – a place where we only see the highlight reels from the lives of those we follow. And while this may seem harmless, it could be seriously impacting our financial wellness. If you’re busy checking your favorite influencers, you may not realize how social media keeps you poor. According to a 2019 Charles Schwab research, 49% of millennials and 43% of GenZs said social media influenced their decision to spend money on experiences.
What’s more, 48% of millennials and 41% of GenZs said social media caused them to spend more money than they could afford. Other influencing factors, such as family, friends, neighbours, and coworkers, had a much smaller impact on spending than social media.
While social media has undoubtedly brought many positive changes to our lives, it also has negative financial effects that can impact individuals, businesses, and the economy.
Here are some of the negative financial effects associated with social media: