Social Media - its Impact on Your Financial Habits & How to Navigate It
"We won't be distracted by comparison if we're captivated with purpose." - Bob Goff
Insights from a Certified Money Coach:
It started with a scroll.
You're sipping your morning coffee, easing into the day with a quick check of your social media. One post catches your eye - your childhood neighbour, Kim has just returned from a luxurious vacation in Bali. Gosh, you haven't seen her in years but this morning your feed is lit up by her radiant smile, exquisitely framed by an idyllic sunset. Yikes! You can practically feel the sand between your toes.
The next post? Oh, look - it's Tina from the office showing off her shiny new BMW - goodness it's gorgeous! And then, that ever-so-stunning influencer casually flaunting that Hermès handbag you've been in love with all season... Argh, it's a sensory overload. Before you know it, you’re deep into an online shopping spree, adding items to your cart that weren’t on your radar an hour ago. The words "I deserve it" flit across your awareness and the credit card gets a workout... It's not even 8am and the budget is broken. With that, the day begins.
Sound familiar?
Welcome to the new reality of financial decision-making in the age of social media. In a world where we’re constantly bombarded by carefully curated images and success stories, it’s so unbelievably easy to lose sight of reason - and with it, our financial goals. Even the most self-assured among us can fall headlong into the murky depths, comparing ourselves to others (the old comparisonitis) and making choices based on the dreaded fear of missing out (FOMO).
The Social Media Influence on Financial Habits
Ah, social media - you double-edged sword.
On one hand, you keep us connected, informed, and inspired.
On the other, you subtly erode our confidence financial discipline, pushing us towards impulsive decisions that don’t align with our long-term goals.
And your power is so vast, its impact so sudden...
Tell me, how exactly do you do make this sorcery happen?
Hmmmm - let's unpack this one a bit, shall we...?
The Comparison Trap
Social media platforms are the perfect breeding ground for comparison.
We see others’ highlight reels - their vacations, new purchases, and seemingly perfect lives - and it can lead us to feel inadequate, less than, lacking and/or somehow left behind.
This comparison then creates a sense of pressure to keep up, often resulting in unnecessary spending.
You might find yourself buying things not because you need them, but because you feel compelled to match a lifestyle portrayed by others.
The FOMO Effect
Fear of missing out is just SO real and social media is its main stage.
When everyone seems to be experiencing something amazing, whether it’s attending a trendy event, dining at a new restaurant or wearing the latest fashion, the urge to participate can be overwhelming. We're programmed this way - we desire to be a part of the "herd", so it's not like you're weak or foolish for feeling this way. It's actually part of the conditioning that makes us community-oriented, pack animals as humans.
And over time, this unrelenting sense of FOMO can lead to spontaneous spending that chip - chip - chips away at your savings, breaks your promises to yourself and diverts funds that were intended for more meaningful financial goals.
The Influence of Ads and Influencers
Oh, what a beast - but it doesn't end there, does it...!?
No, social media platforms are also riddled with advertisements via the thousand-and-one crafty, delicious promotions of influences, all most many of which are designed to look like organic content. These ads are usually served up to you specifically, tailored to your browsing history and interests, making them almost irresistibly persuasive. Cunning doesn't even begin to describe these tactics for those of us on a mission to budget, invest and plan for retirement...
You see, when your eyes alight upon someone you admire endorsing a product, gadget or lifestyle, then all bets are off.
It's super easy to quickly justify the purchase as something that will add that same (curated - aka fake) sprinkle of magic into your world and maybe you'll even look/feel/appear like this stunning demi-god as well.
Even if just for a moment.
You convince yourself it will enhance your life in the same way and in that instant you're done for...
Emotional Spending
Social media can also trigger emotional spending.
After a long, stressful day, you're on the train home from work and you're scrolling. As we all do.
You're hot, sweaty and tired.
And what do you know? You're greeted with one simply drool-worthy post after another:
Magical scenery, the Harvey's are enjoying a BBQ at their Lake house - the Spring collection by your favourite designer - a cafè in picture-perfect quaint cobblestone alley in Italy - the most stunning shoes that promise not to hurt your arches - your cousin's ever-so-perfect family posing in matching outfits - that shiny new SUV you wish you could afford - a swimsuit worn by a woman whose figure you'd practically kill for - those shoes again, gosh they are pretty - nail varnish in a colour you can picture yourself wearing - a bathroom makeover - the hair cut/colour/blow-out you wish you were booked in for this weekend - and on - and on - and on it goes....
How do you respond to that level of comparisonitis/jealousy/desire/envy/want/lack/irritation...?
Well, a quick dopamine hit from buying something new might logically be a cheap thrill, but right in that moment, it's going to feel like just the ticket.
The problem is that purchases like these are, by their nature, unplanned and can (almost always) lead to buyer’s remorse.
Emotional spending that's basically a knee jerk reaction, driven by social media will derail your budget and financial plans faster than you can say "lifestyle influencer" and that's when your guilt/shame/disappointment will kick in and crowd out that fleeting dopamine buzz...
Le sigh.
Strategies for Navigating Social Media’s Financial Influence
So, how can you enjoy the shiny, rosy benefits of social media without letting it utterly crush and sabotage your financial well-being?
Well, short of taking yourself off to a literal cave in the mountains and smashing your phone into small pieces in order to save your sanity, there are a couple of simple strategies you could try, that will allow you to stay in control AND remain a member of modern day society...
Some ideas:
1. Mindful Scrolling
The first step in breaking free from social media’s financial grip is awareness.
Start by observing how you feel before, during and (most importantly) after spending time on social media.
Do you feel content, or do you find yourself suddenly wanting things you hadn’t considered before?
By becoming more mindful of your emotions, you can begin to recognise when social media is influencing your spending habits.
2. Set Clear Financial Goals
Having clear financial goals from the outset will give you a sense of comfort like a lighthouse to a ship - warning you if you veer off course.
Certainty around your goals - what they are, why they matter and how you will achieve them - this will act as a compass, guiding you through the sea of social media temptations.
When you know what you’re working towards - whether it’s saving for a home, paying off debt, or building an emergency fund - it’s always going to be a whole lot easier to resist impulsive purchases.
Regularly revisit your goals (honestly, daily isn't even often enough) and remind yourself over and over what it is you're striving for.
Use these goals, and the emotion behind them as a non-negotiable filter for your spending decisions.
3. Create a Budget and Stick to It
A well-thought-out budget is your best defence against impulsive spending.
See my blog post on the Super-Power of Budget Management here.
Stop thinking of budgets as being restrictive. They are EMPOWERING. Lemme say it again for the folks up the back - BUDGETS ARE YOUR BEST DEFENCE.
Don't presume that to budget means to forego. Build in some fun, some splurge and some excitement into the budget as you tailor-make it to suit your needs.
Allocate specific amounts for all that dopamine-driving discretionary spending and stick to those limits. Not a dollar more.
Consider using budgeting apps that track your spending in real-time, so you’re always aware of where your money is going.
If you find yourself tempted by something you see on social media, give yourself a cooling-off period before making a purchase.
This will give you time to consider whether the purchase aligns with your financial goals.
Another simple tip is to drop the items into your online shopping cart and walk away before checking them out. 24 to 48 hours later, those pretties have most often lost their shine. You got your fix but it didn't land on your credit card - so you won that battle, just like that.
4. Curate Your Social Media Feed
Take control of what you see on social media by curating your feed.
It's your feed - prune and mould it until it serves you.
Seeing your old school friend Agnes and her ridiculously glamorous European vacations making you gag on your breakfast burrito just a bit? Then turn those updates off. Right now.
It doesn't matter if they are family members (distant or immediate - hello Aunt Cathy), school friends from decades ago, work mates, influencers or that pop star that you love to hate.
You can mute their social media feed any time it suits you. And really, you should.
Just unfollow those accounts that consistently make you feel inadequate or prompt you to spend money unnecessarily.
Instead, follow accounts that inspire you to achieve your financial goals, offer practical money management tips or share content aligned with your values.
Surround yourself with good vibes and positive influences that encourage you to make wise financial decisions that improve the quality of your life.
5. Practice Digital Detox
Consider taking regular breaks from social media to clear your mind and reset your priorities.
Think of it as a little getaway from the cray-cray.
A digital detox, even for a day or a weekend, can help you reconnect with your financial goals without the noise of constant online influence.
Use this time to focus on activities that support your well-being and financial health, such as reading a book (see my post on the Top 10 Finance Books for Women and choose one of these to indulge in instead of drowning in your socials), spending time in nature, or engaging in that hobby you always claim you're too busy for...
You'll be surprised how refreshed and invigorated you feel afterwards and who knows, it could become a regular thing.
6. Engage in Conscious Spending
Adopt a practice of conscious spending, where every purchase is made with intention and purpose.
Channel your inner Marie Kondo and really get thoughtful as you contemplate an object you're about to buy.
Before buying something, ask yourself:
Do I really need this?
Does it (or can it) bring me lasting joy? (That is joy that lasts more than 12-hours)
Does it bring me closer to my financial goals?
Am I making this purchase for myself, or to impress others?
By making more intentional decisions, you will side-step the trap of mindless spending driven by social media like a financially-savvy-ninja.
7. Build a Strong Money Mindset
Your mindset plays a crucial role in how you manage money.
Cultivate a money mindset that emphasises abundance, self-worth, and long-term planning.
Recognise that your value is not and never will be determined by what you own or how closely you match the lifestyles of those fake phonies who splash their pics all over social media.
Focus on building wealth, not just in monetary terms, but in terms of the richness of your experiences, the priceless nature of relationships and your quest for ever expanding personal growth.
8. Teach Financial Literacy to Your Children
If you’re a parent, it’s so so so important to recognise how social media can (and will) influence not just your financial habits, but also those of your precious children.
You've got to be the mouthpiece who calls out the dangers, points out the pitfalls and decries the falsity - showing them that a better way does in fact exist.
Teach them about the reality behind social media, the importance of budgeting and the value of money.
Even if you feel like you're still learning all of this yourself, remember they are like little sponges and will be absorbing lessons by watching how you navigate these very same issues yourself.
This is where modelling ideal behaviour becomes so important. You see, while you're struggling with it yourself you have to "fake it until you make it" in terms of being a role model to them about how well it can be managed.
Even when you feel like you're drowning.
Argh, the paradox of Motherhood summed up right there...
Do the best you can.
Encourage them to set their own financial goals and help them understand that true wealth is built over time through smart decisions, not impulsive purchases.
Reclaiming Your Financial Power
Navigating the influence of social media on your financial habits is no small feat, but it is entirely possible with the right strategies. By becoming more mindful, setting clear goals, and practicing conscious spending, you can reclaim your financial power and make decisions that truly serve and support the financial future you have designed.
Remember, you don’t have to go it alone. If you find yourself struggling to break free from the pressures of social media or need help setting up a financial plan that aligns with your goals, working with a Certified Money Coach can make all the difference. A coach can provide personalised guidance, helping you build the financial habits and mindset needed to thrive in spite of the temptations of today’s digital world.
P.S. Ready to take control of your financial future? My coaching programs are designed to help professional women like you break free from the traps of social media influence and build a resilient, empowered relationship with money. Let’s work together to create a plan that aligns with your values and sets you up for long-term success. Reach out today to learn more about how we can transform your money story!
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