Common sense says to take what you see on social media with a grain of salt. When it comes to money and finance, you need a whole salt shaker
There’s a reason social media platforms reward highly visible “influencers” who sway public opinion toward the product or service they’re shilling. After all, influencing the online public is what social media platforms like TikTok, YouTube, Facebook, and Twitter are all about.
That influence campaigns, however, grows more toxic when social media users give too much credence to what they see online when it comes to money and wealth – real and imagined.
A case in point. A brand new Bankrate study found that 46% of Gen X’ers and 38% of millennial social media posters admit to posting things online that just aren’t so. Simultaneously, 34% of young social media users are more likely to feel negative about their financial situation than any other aspect of their lives because of others’ posts.
Additionally, 64% of U.S. parents with children under the age of 18 who have access to social media believe it has contributed to their kids having “unrealistic expectations “about money, including 31% who “strongly agree.”
No, He’s Actually Not a Lambo Owner
That’s a problem, as understanding money and finance is difficult enough for the average 15-year-old – or 25-year-old, for that matter. Having outsized impressions about money and finance because of what someone posted on Tik Tok doesn’t help that situation at all.
“Social media is a snapshot of what someone else wants you to see in his/her life,” said Tommy Thompson, a certified financial planner with Innovative Financial Group in Atlanta, Ga. “Social media at its best shows only the good parts (like a new Lamborghini arriving); at its worst it’s deceitful, omitting the part where the owner of the Lamborghini drives away after he let your friend take a picture in it.”
The primary issue is that young Americans tend to rely on social media because it’s so addicting. Unlike mom and dad, the financial influencer on Twitter isn’t going to tell platform users to save their dollars and have a budget.
There’s power in that scenario, and it’s all on the side of social media.
“Our brain craves new experiences, and social media continually provides us with new stimuli featuring people and things we care about,” Thompson said. “Using social media to gauge financial success is no different than striving to be like the model on the magazine cover or the professional wrestler on TV.”
Another problem. The image young Americans are seeing online is curated to make them envious, but it’s rarely real.
“The happiest clients I have are the ones that set their own goals and then work toward them,” Thompson said. “They really don’t care what anyone else is up to, they’re too busy focusing on what they enjoy.”
This creates a positive feedback loop in their brain, Thompson notes.
“These people achieve and feel great,” he said. “They then start enjoying the hard work, because it leads to more achievement. They already know that chasing idols and focusing on what others advertise, creates a feedback loop that is destined to result in a lack of fulfillment.”
Weaning the Kids Off Social Media – At Least on Money Matters
For younger Americans who want to adjust toxic social media-driven money mindsets – or their parents who may want to do the job for them – a sense of proper proportion is a good place to start.
“Using social media as a barometer for success can be tricky,” said Emily Hale, a social media analyst at MechantMaverick.com. “A single social post only shows a moment in time, not necessarily the blood equity placed into what got you where you are today. Comparing your current state of affairs with what you see is only a fraction of the whole picture.”
Despite this inauthenticity pervading social media, many people extract profound meaning from others’ posts and use them as a litmus test for their own happiness, and sense of worth.
“Americans often return over and over because even though it can be tough to navigate, social media connects us to things we wouldn’t have access to otherwise,” Hale said. “The key is realizing when a post affects us negatively, and using that as feedback. Acknowledging your own feelings and using that to guide your goals is a great way to redirect bad feelings. After all, we all have our own story to write.”
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This story was originally published July 19, 2022 6:00 AM.
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