Social Media's Impact on Your Money Mindset
There are a variety of viewpoints on how social media influences our society - both good and bad. After all, some people are spending hours a day on these platforms and we need to be aware of their impact. From our vantage point, we’re paying close attention to how these networks influence our clients’ spending, saving, and investing habits.
Social media often showcases a curated and exaggerated view of reality. People don’t often post about their child’s behavioral problems at school or about the stress of caring for an aging parent. They post about luxury vacations, great seats at sporting events, and fancy nights out. It creates a distorted sense of what is "normal" and can lead to an unconscious pressure to keep up.
Let’s say you follow friends or influencers who travel the globe, stay at the best hotels and dine at Michelin star restaurants. Maybe subconsciously, this alters the way you feel about the “standard” vacation you take to the beach, even though you’ve enjoyed it for years.
Or maybe you’re seeing posts during the holidays of friends spending time in second homes. You might begin to feel that owning a second home is more common and necessary than it really is.
Remind yourself that social media often highlights the best moments of someone's life, not their everyday reality. Set personal financial goals that reflect your values and priorities rather than the curated lives you see online.
To be clear, there’s nothing wrong with traveling or buying a second home. In fact, proper financial planning can help you make these choices with confidence and within your means. It’s just important to avoid the sense of never having enough or always needing to upgrade.
It should also be mentioned that social media has the potential to inspire positive financial habits as well. Many financial advisors, asset managers, and publications have taken to the platforms and can offer valuable advice.
It’s all about what posts appear in your newsfeeds. You can influence this by the pages and profiles that you follow. Consider following pages that build your knowledge base, rather than aspirational pages of perfection.
Social media's influence on our views of money, spending, and investing is undeniable. By being aware of its impact, practicing mindful consumption, and seeking credible information, we can navigate the digital landscape without compromising our financial well-being. Remember, your financial journey is unique, and staying true to your values and goals is the key to long-term success.
Material prepared by Oechsli a third party non-affiliated with Raymond James.
Any opinions are those of Steven Bayardelle or The Wang Group and not necessarily those of RJA or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. You should discuss any tax or legal matters with the appropriate professional.
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The examples referenced herein are hypothetical and are not intended as investment advice. Please consult with your financial advisor if you have questions about these examples and how they relate to your own financial situation.
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