Is “Social Media Splurging” Wrecking Your Wallet?

Welcome to Money Demure … our series of simple tips and actionable strategies to outsmart overspending, master mindful spending and take control of your finances, without missing out on the good stuff in life. See that financial responsibility? Very demure, very mindful…

It happens a lot these days: you’re scrolling through your favorite social media platform when an ad for the latest tech gadget or fashion trend catches your eye. Before you know it, you’ve clicked “Buy Now” without giving it a second thought. Sound familiar?

Welcome to the world of social media splurging: a growing trend where the ease of online shopping and the power of social influence collide, leading to spur-of-the-moment purchases—and blown budgets. 

The inescapable influence of social media 

Social media platforms are no longer just a way to keep up with friends—they’re powerful marketplaces. Influencers, algorithms, and targeted ads play a major role in enticing people to make impulse buys. 

And they’re making them: One study showed that 50% of  U.S. Gen Z and Millennials buy directly through social media platforms like TikTok and Instagram, and another found that 69% of consumers trust influencers, friends and family over information coming directly from a brand.

But while that trust can drive purchases, it also drives overspending, which has an impact on your financial health. Read on to see how you can rein those splurges in, without feeling deprived.

How social media splurging affects your finances 

Impulse purchases add up fast, and can put a serious damper on your financial goals. Here are just a few ways how: 

Impulse buying

Social media is designed to keep you engaged, and the constant stream of influencer endorsements and ads can trigger impulse buying. These unplanned purchases add up, leaving you with less for your essential expenses and savings goals. According to CNBC, impulse spending fueled by social media could cost the average consumer almost $2,000 a year—money that could be saved or invested.

Mounting debt

Social media splurges often land on credit cards, and with interest rates on the rise, that cute outfit or new gadget can end up costing far more than its original price. Before you know it, you’re accumulating debt for items that were bought on a whim.

Missed financial goals

Every dollar spent on a social media splurge is a dollar that could have gone towards your long-term financial goals, like building an emergency fund or saving for a major purchase. 

Consider setting up a high-yield savings account with help from MoneyLion.

How to curb social media splurging 

Good news: You don’t have to delete your social media apps to regain control of your spending. Here’s how you can strike a balance:

Set a budget for discretionary spending 

Create a budget that includes a set amount for discretionary spending, such as social media splurges. Knowing your limits can help you make more informed decisions, and sticking to a budget keeps those purchases in check.

Track every dollar 

Once you know where your money’s going, it’s easier to adjust your spending habits. By tracking your spending and creating a simple budget, you can find out where your money’s going, identify patterns, and see where social media is leading to impulse buys. 

Sleep on it

Before tapping “buy,” give yourself a little pause — then come back 24 hours later to see if that viral wine glass holder is still something you can’t possibly live without. Quite often, your initial adrenaline-fueled excitement will have faded, maybe even considerably.

Enjoy guilt-free perks 

With a MoneyLion account, you can access exclusive perks and discounts that help you save on things you love—without blowing your budget. 

Invest, effortlessly 

Use MoneyLion’s Round Ups feature to automatically invest the difference each time you make a qualifying purchase. That way, even when you indulge in a splurge, you’re still potentially benefiting your bottom line.

MoneyLion has your back

Social media splurging doesn’t have to derail your finances. With MoneyLion, you can make smart spending decisions and help stay on track with your financial goals.

Ready to take control of your spending (and splurging)? Download the MoneyLion app today.