How Social Media Can Negatively Impact Financial Well-Being

how social media works online

There is nothing inherently wrong with social media. It provides a convenient platform for connecting and engaging with people. But there is a darker underbelly that can emerge the more social media is used.

Unlike in 2007 when only Myspace was around, you’ll be hard pressed to find anyone who isn’t influenced by social media in some shape or form today.

Consider the following statistics and data points as curated by Oberlo:

  • Facebook is the most widely used social media platform, with roughly 68 percent of U.S. adults active on the network.
  • Broken down by generation, 90.4 percent of millennials, 77.5 percent of gen X, and 48.2 percent of baby boomers are active on social media.
  • On average, users spend three hours per day on social networks.
  • 73 percent of marketers believe social media marketing is “somewhat effective” or “very effective” in helping them influence customers and grow their businesses. 
  • 49 percent of consumers rely on influencer recommendations on social media to make purchasing decisions. 

The Social Media Explosion

The growth of social media has been staggering. We’ve gone from just a couple of niche websites 15 years ago to an entire lineup of billion-dollar social networking platforms. And these tech giants are only just now hitting their stride.

The average age at which users first start accessing social networking sites like Instagram and Snapchat is getting younger and younger. Research shows that 55 percent of parents of 12-year-olds say their child is on Facebook, while 76 percent have helped their children gain access to a social networking platform.

So not only is social media growing, but the age of influence is getting younger. By the time a child reaches pivotal decision-making years – like 16, 18, and 21 – many of their opinions have already been shaped and formed by what they see on social media. This includes their opinions on important topics like relationships, politics, and money. And, unfortunately, the influence isn’t always positive.

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