How Social Media Savvy Keeps Money in Your Pocket

Social Media Ads Made Just for Us

Ever think about how social media might be impacting your bank account? Probably not. But maybe you should, considering almost 40% of American adults say that seeing other people’s purchases and vacations on social media have prompted them to look into similar purchases.

As social media platforms invent new ways to advertise and integrate spending into their products, it’s becoming increasingly important to be aware of the different tactics they use to encourage impulse spending.

One such tactic is ad targeting, which allows companies to target consumers based on location, demographics, interests and even behaviors. If an ad seems like it was tailored for you, it’s because it more than likely was!

The most skilled marketers craft high quality sponsored posts and viral videos so we can’t help but share. And oftentimes we don’t even realize we’re being sold a product.

Celebrities use social media to engage with their fans, but they also accept endorsements that help brands get established and raise sales. It might be tempting to buy the same products your favorite celebrity swears by, but your wallet will thank you for resisting the temptation if it’s not something you truly want or need.

Check Yourself before Buying Stuff You See on Social Media

One of the criticisms of social media is that it presents a false reality of perfection since people tend to only share their best moments. It can also breed a sense of competition, and might result in a splurge at that fancy new sushi restaurant just for the purposes of sharing a perfectly plated dinner. While one or two meals out isn’t going to break the bank, it’s hard to defend a purchase inspired by your high school frenemy’s #ThrowbackThursday post.

It’s easy to fall into the trap of spending more in attempts to attain that perfect life some seem to portray on social media, but there are some good tools to help you keep a healthy budget. The 50/30/20 Rule is one strategy that breaks your total monthly household income into three distinct silos: Needs, Wants and Savings.

And when you don’t have time for math, a quick survey can help you ward off temptations and spend smarter. Ask yourself sincerely:

  1. Is it a need, as opposed to merely a want?
  2. Is this purchase within budget?
  3. Is there something more sensible you should be spending your money on?

Keep your financial goals at the forefront when browsing online and you’ll soon find those seductive ads easy to ignore when you can’t answer yes to all three questions above!