Social media is forcing Gen Z, millennials to buy what they can’t afford

Not all young people make the bank went viral on TikTok. Quite the opposite: For most Gen Zers and millennials, social media apps like TikTok and Instagram making their financial worries worse. So looking Deloitte’s 12th annual 2023 Gen Z and Millennial survey, which provides answers from more than 22,000 Gen Z and millennial respondents in 44 countries. Fifty-one percent of Gen Zers and 43% of millennials say social media makes them want to buy things they know they can’t afford.

That can come from constantly seeing posts from friends or influencers boasting about fancy clothes and vacations, as well as targeted ads, says Michele Parmelee, global person and leader to the purpose of Deloitte. “In those ways, social media can create the desire to have more things and spend more money,” he said. luck.

Unfortunately for young professionals, over buying nothing has ever been farther out of reach. Respondents told Deloitte that the high cost of living is their top social concern—rightly so considering that they are both facing real inflation for the first time in their lives and the prospect of making student loan payments again (or for the first time ever). Half of Gen Zers and millennials each say they live paycheck to paycheck.

Some are very stressed about money getting a second job to finish and postpone big life decisions like buying property or starting a family. In their place, they adopt more cost-effective habits, such as buying second-hand goods or avoiding car ownership.

Social media doesn’t help matters. there there is no shortage of evidence that can be done on social media detrimental to mental health to its users of all ages—not just teenagers and young adults. Last July, a Bankrate study found that nearly two-thirds of social media users who made impulse purchases after scrolling regretted it.

Those purchases, which often come from clever ads or sponsored content from popular creators, “often do more harm to our finances than good to our lives,” Bankrate.com analyst Sarah Foster said. SPOKE luck.

That’s a double-edged sword: Social media use and subsequent purchases hurt users’ wallets and their egos. Social media users are more likely to feel negative about their financial situation than any other aspect of their lives, Bankrate found. They chalk that up to most of the comparison game: Many Gen Zers and millennials say they feel bad about their own finances after seeing someone else’s social media post.

Spending too much time online doesn’t help—one in five (20%) Gen Zs spend five hours or more a day on video social media platforms alone, Deloitte found, while 17% of millennials spend five hours or more a day. traditional social networking sites. They believe it has mixed effects on their lives, Parmelee said.

“Long sessions of scrolling, swiping, and tapping make our brains check and send neurochemical signals of humiliation and frustration,” Brittany Harker Martin, an associate professor of leadership, policy and management at the University of Calgary wrote for luck earlier this month.

Suffice it to say, you’re probably better off—financially and emotionally—deleting your account.



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