We all know that scrolling through social media can leave anyone with some major envy and it turns out for Millennials and members of Gen Z, that’s causing them to spend money they just don’t have.
A new Schwab poll finds that 35% of Americans say they feel the need to spend more money than they could afford because of what they see on friends’ social media pages. Of course that number goes up for younger folks, with 49% Millennials and 44% of those in Gen Z saying their spending is affected by FOMO based on social media posts.
Another big reason folks are spending money they shouldn’t is because they don’t want to miss out on certain experiences. In fact, 35% of people say spend too much in order to share experiences with friends, with that number going up to 48% for Millennials and 41% for Gen Z.
Of course, what folks see on social media may not necessarily be a reality, and maybe those people aren't really as well off as they'd have you believe. With regards to that, the poll finds that 60% of people wonder how their friends can afford all the experiences they share online, with 74% of both Millennials and Gen Zers feeling that way.
ONE MORE THING! The poll also asked folks what they’d do if the came into a $1 million windfall, with 54% willing to spend it, on either a house, cars or travel, while 28% would use it to pay down debt, 21% would save it and 23% would invest it.