The Impact of Social Media on Financial Habits and Expectations

In today's tech-filled world, social media is all around us. While it is a great platform for connecting and exploring, it has a big effect on our generation’s money moves. We need to be aware of how those endless scrolls are affecting our wallets and dreams.

The FOMO Factor

Okay so we’ve all been there—seeing our favorite influencer rocking the newest Kate Spade purse or flying off to Bali. Instantly we feel a sense of missing out, thus pressuring us to spend money on experiences or products just to post about them. Remember to have a monthly budget and ask yourself “Do I really want or need this? Am I just feeling FOMO?” so that you aren’t making frantic and unethical purchases. Give yourself a few days to think about the purchase and if it’s within the budget, or the right time, make the move and enjoy yourself! Be proud of yourself for thinking things through and not letting the FOMO pressure you into a buy you might regret.

#FinTok: The Good, The Bad, The Confusing

Very often I’ll be scrolling on Instagram when I see a “5 Steps to Get Rich Now” reel. TikTok and Instagram are serving up financial advice faster than we can say “stonks.” Some of it is legit, but a lot of it is questionable. A recent survey found that 41% of young adults are getting financial advice from social media. That’s huge! Here is what we all need to be aware of:

The Good:

Easy access to financial education
Relatable money management tips
Exposure to investing concepts

The Bad:

Unrealistic “get rich quick” schemes
Potentially harmful financial advice
Lack of personalized guidance

Expectations vs Reality

Social media can make it seem like everyone our age is:

Launching successful side hustles
Investing in crypto and making bank
Living that luxe life 24/7

We can’t let social media fog reality. We need to keep it real and be aware of the fact that for most of us that’s not the reality of our situation—which is perfectly fine. Everyone has their own timeline and it is crucial to remember that people usually only share their highlights, not their everyday struggles.

Building Healthy Financial Habits

So, how do we navigate this social media money maze? Here are some tips:

1. Fact-check financial advice—Don’t just take a TikToker’s word for it!

2. Set realistic goals—Your journey is unique, don’t compare it to others

3. Practice mindful scrolling—Ask yourself: “Is this making me feel good about my finances?”

4. Seek legit resources—Check out reputable financial websites and books

Overall, the bottom line is do not trust everything you see on social media. Social media is changing how we think about money, for better or worse. It’s up to us to be smart about what we absorb and how we act on it. When battling FOMO, consider taking a social media break, practicing gratitude and mindfulness, or reframing your thoughts. Challenge negative self-talk that feeds FOMO. For example, instead of thinking, “I’m missing out,” remind yourself, “I’m choosing what’s best for me right now.” Positive self-talk can boost your self-esteem and help you appreciate the present moment. Remember, your financial journey is just that—yours. Don’t let these platforms dictate your goals!

Ava Wieczorek

Grade 12

Bentonville

Sources

Day, Anna. “How Social Media Are Controlling Gen z’s Wallets.” Opinium, 5 Nov. 2024, www.opinium.com/eu/how-social-media-are-controlling-gen-zs-wallets/.

“Fear of Missing out (FOMO): What It Is and How to Cope.” HelpGuide.Org, 16 Jan. 2025, www.helpguide.org/mental-health/wellbeing/fear-of-missing-out-fomo.