How Social Media Has Changed the Way we Spend Today
02 April, 2021
If I asked you to open your instagram account right now I think it’s a safe assumption that we’d all see the same kinds of posts and stories from our followers: luxurious looking vacations, parties, “#ootd”’s, and aesthetically appealing meals and drinks. We’ve all seen these things and we’ve all posted these things, why not show off the good looking things in your life?
This may seem like a harmless way of sharing until you actually consider the sentiment surrounding it. What happens when we see posts like those? We want it. We want that meal, to go to that beach, to drink that cocktail at that bar on a Saturday night with all of our friends. And what happens next? We do. We spend the money, we take the picture, we post it, and the cycle continues. Did you catch that? We spend money, and a lot of it at that, just to keep up.
A social need to experience extravagant and “post-able” things is on the rise and it’s taking us down with it. We want validation and to prove ourselves on social media while also not feeling like we are missing out on the action. If you don’t believe me, Charles Schwab’s 2019 Modern Wealth Index Survey found that more than one third of Americans admit their spending habits are influenced by images shared by their peers on social media. 1,000 individuals were surveyed, resulting in the follow statistics:
The most interesting aspect of this study was the amount of people who admitted to paying attention to their friends’ spending habits, rather than saving: three in five Americans. It seems a culture of over-spending and showing it off has become the norm among young millennials and Gen-Z-ers during a time when student debt is at its highest and financial literacy is needed most. What needs to happen is the creation of a habitat where saving is validated, and financial health is the currency for social acceptance.
At Envel, this is the environment we want to cultivate. Our banking app operates using AI to manage your spending and saving autonomously. Based on your individual needs and habits, a daily spending limit is customized. If you’re able to stay within the bounds of your new budget, our point system will reward your constructive spending and saving. This lands you on a scoreboard where you’re ranked among your friends, allowing the competition to stem from positive financial habits rather than negative ones.
Download our app on Google and Apple app stores to see for yourself!
Jacqueline EpsteinRead more from Jacqueline Epstein