Is Social Media Impacting the Way We Spend Money?

Is Social Media Impacting the Way We Spend MoneyIt is no surprise that social media has changed the way that we perceive the world, but has it changed the way we spend our cash? People have become extremely aware of their online presence and everyone wants to show off the best version of themselves online.

We are becoming more isolated and detached from reality due to our obsession with social media sites such as Facebook, Twitter and Instagram. Social media already impacts the way that we speak to each other and our levels of communication, but has it gone too far?

Do our social media sites cunningly draw our attention whilst taking money right out of our pockets? Let’s find out.

Fear of Missing Out
Social media can be an exciting platform to share things with friends and family and to see what everyone else has to say about various subject matters. We can quickly become attached to this notion that there is always something to see on our homepage; the red notification symbol keeps popping up which gives us even more reason to stay online.

There is a consistent fear of ‘missing out’ which derives from social media. It is as though we are spending above our means without giving it much thought in order to keep up with the trends. Many people turn to sites such as Car Cash Point in order to take out a quick loan on their car that will help them to finance purchases that social media convinced them that they needed.

We are influenced on a daily basis by the things that we see. Social media is no exception to the rule and without even realising it we are being constantly influenced by family, friends and the media. According to Social News Daily 25% of people trust endorsements from friends and family on social media sites, which can often lead to us buying things we don’t need because a friend has proclaimed its greatness via Facebook or Twitter.

As you are probably already aware of, social media sites often use different forms of advertising. Our homepages are constantly updated with different adverts that are meant to appeal to our individual preferences. On the right hand side of your homepage, there is likely to be a few advertisements that often relate to something you searched for in the past or an advert for a website you once visited.

With this clever placement advertising, it is no surprise that we can easily fall into a sale or two. According to an infographic posted by Entrepreneur the three ways in which Facebook, Twitter and Pinterest increases sales is to provide additional information, alert viewers to sales and identify a place to buy the item/service. The research showed that 51% of females aged 18 to 34 and 56% of men were likely to make a ‘social purchase’ which emphasizes just how much social media can impact our spending habits.

Are you affected by these changes?

Have you ever made a “social purchase”?