The article highlights three modern spending habits that might be affecting people's finances without them even realizing it. These habits include:
1. Spending Money Based on Social Media: According to the Charles Schwab Modern Wealth Survey 2023, a third of people make purchases based on what they see on social media platforms like TikTok. This is particularly prevalent among Gen Z, with 55% admitting their purchase decisions are influenced by social media trends.
2. Getting Financial Advice from Influencers: Similar to spending money, a third of survey respondents stated they make investment and financial decisions based on social media. Gen Z is again more likely to follow influencers' advice, with 50% making investing decisions and 46% making other financial decisions based on social media content.
3. Keeping Up With The Joneses: This habit involves spending money to fit in with peers or to keep up with the lifestyle presented by others on social media. The study found that 30% of millennial and Gen Z consumers went into debt to avoid feeling left out.
The article suggests that social media can pose a risk to good financial habits due to its influence on spending and decision-making. To counteract this, individuals should make financial decisions based on their own situations and long-term goals, rather than following trends or feeling pressured by social media content.
The article recommends being cautious when viewing social media content and thinking carefully before making purchases to ensure they align with your financial goals.
Comments