25th March 2025

Could Social Media Be Costing You £££?

Ariane Marie Ariane Marie
5 mins read

Is Social Media Making Us Spend More?

Scrolling through social media has become second nature, but have you ever noticed that you suddenly need something you hadn’t even thought about before opening the app? That’s no accident. Social media platforms are designed to influence our desires, shape our spending habits, and, ultimately, encourage us to part with our hard-earned money.

From influencers promoting the latest fashion must-haves to algorithm-driven ads tailored to our interests, social media fuels impulse spending like never before. But does it actually make us spend more than we otherwise would? Research suggests the answer is a resounding yes.

The Science Behind Social Media-Induced Spending

Multiple studies have shown that social media increases consumer spending. According to a report by Barclays (2023), nearly 40% of UK adults admit to making impulse purchases influenced by social media, with younger demographics being the most susceptible. Platforms like Instagram and TikTok use sophisticated algorithms to personalise content, ensuring we see products that align with our interests, making it harder to resist temptation.

Additionally, social media fosters a culture of comparison. The “Instagram effect”—where people feel pressured to keep up with influencers or peers—drives spending on everything from luxury items to travel experiences. Research by The Money and Mental Health Policy Institute (2022) found that social media could contribute to financial anxiety, particularly among young women, who often feel compelled to maintain a certain lifestyle for online validation.

The Hidden Costs of Social Media Shopping

Beyond the obvious increase in spending, social media influences our financial habits in more subtle ways:

1. Impulse Purchases

  • “Buy now, think later” is the mantra of social media shopping.
  • Studies show that the ease of in-app purchases increases spending without careful consideration (Financial Conduct Authority, 2023).

2. FOMO (Fear of Missing Out)

  • Limited-time offers, flash sales, and “only a few left” tactics create a sense of urgency.
  • This scarcity mindset encourages spending on things we don’t actually need.

3. Influencer Culture and Lifestyle Pressures

  • Seeing influencers promote products daily creates a false sense of normalcy around excessive spending.
  • Even when posts are marked as ads, they often feel like genuine recommendations, making them highly persuasive.

4. Buy Now, Pay Later Schemes

  • Services like Klarna and Clearpay make social media purchases feel more accessible, but they could lead to debt accumulation (Citizens Advice UK, 2023).

How to Take Control of Your Social Media Spending

Social media isn’t going anywhere, but that doesn’t mean our wallets have to suffer. Here’s how to take control:

  • Unfollow temptation: If certain influencers or brands trigger impulse spending, consider unfollowing or muting them.
  • Set a spending limit: Many banks now offer features to track and cap discretionary spending.
  • Pause before purchasing: Give yourself 24 hours before making any purchase inspired by social media.
  • Use social media mindfully: Be aware of the psychological tricks platforms use and question whether you really need what’s being advertised.

Final Thoughts

Social media is a powerful tool, but it’s also a marketplace disguised as entertainment. By recognising the tactics at play and taking control of our spending habits, we can enjoy social media without letting it drain our bank accounts.

At Propelle, we empower women to build healthier financial habits in a world that constantly encourages spending. Want to take control of your money? Join our Propelle community today!

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