Not every guy makes bank with his TikTok spread. Quite the opposite: For most Gen Zers and millennials, social media apps like TikTok and Instagram exacerbate their financial anxiety. That’s how he finds Deloitte’s 12th Annual 2023 Gen Z and Millennial Survey, which received responses from more than 22,000 millennials and millennials in 44 countries. 51% of Gen Zers and 43% of Millennials said social media makes them want to buy things they know they can’t afford.
That could stem from regularly seeing posts from friends or influencers flaunting luxury and vacation clothing, as well as targeted ads, says Michelle Parmeli, Deloitte’s global people and purpose leader. “In these ways, social media can generate the desire to own more things and spend more money,” she says. luck.
Unfortunately for young professionals, extravagant purchases were not far off. Respondents overwhelmingly tell Deloitte that the rising cost of living is their biggest social concern — and rightly so considering they’re dealing with real inflation for the first time in their lives and the prospect of paying off their student loans again (or for the first time). since when). Half of both Gen Zers and Millennials say they live paycheck to paycheck.
Some are so stressed about money that they take on second jobs to make ends meet and put off major life decisions like buying a property or starting a family. In their place, they adopt more spending habits, such as buying used items or avoiding car ownership.
Social media is not helping matters. There is no shortage of evidence that social media can damage the mental health of its users of all ages – not just teens and young adults. Last July, my bank rate Stady It was found that nearly two-thirds of social media users who made impulse purchases after scrolling felt regretful about it.
Bankrate.com analyst Sarah Foster said these purchases, which often stem from clever ads or sponsored content from popular creators, “could do more harm to our money than good to our lives.” luck.
This is a double-edged sword: social media use and subsequent shopping hurt users’ wallets and egos. Social media users are more likely to feel negative about their financial situation than about any other aspect of their lives, Bankrate found. They mostly bring it back to the comparison game: Several Gen Zers and millennials said they felt bad about their finances after seeing someone else’s social media post.
Spending too much time online doesn’t help — one in five (20%) Gen Z spends five or more hours a day on video social platforms alone, Deloitte found, while 17% of Millennials spend five or more hours a day on traditional social networking sites. Parmeli said they believe this is having a mixed effect on their lives.
“Long sessions of swiping, swiping, and tapping cause our brain to check and send neurochemical signals about motivational inhibition and failure,” writes Brittany Harker-Martin, associate professor of leadership, policy, and governance at the University of Calgary. luck earlier this month.
Suffice it to say, it might be best—both financially and emotionally—to delete your account.
