Social Media Has Become the Biggest Overspending Enabler

There’s no question that social media has become a huge factor in society today, impacting relationships, marketing, politics and how people spend their money. It’s that last point that may be most surprising according to a new study just released from online service Wallet Hub.

The average person spends nearly two and one-half hours a day on social media and a big chunk of that time is spent shopping. That has resulted in some less than complimentary habits and tendencies the survey found out. Here are some key findings:

• Impulse Buys: Nearly three in four people have made an “unnecessary” purchase through social media.
• Encouraging Overspending: Two out of three consumers believe that social media promotes overspending.
• Not a Good Influence: 46% of people think social media is bad for their debt.
• Not as Advertised: Nearly one in five would describe their social media purchases as “scams.”
• Financial Frustration: About one-third of all people say social media makes them feel frustrated about their finances.
• False Financial Image: Nearly two in five try to present a falsely positive financial image on social media compared to reality.

Other findings from the study were just as alarming. When asked “what emotions does social media evoke regarding your finances?” respondents were allowed to choose all that applied and ranked confident number one at 38% but frustrated second at 36%. Hopeful was 24% but greed was 23% and jealousy was next at 19%, followed by pride and embarrassment, offering a wide variety of emotions to be sure.

Survey takers said they found social media sites a little less convenient than shopping on traditional e-commerce websites. Much as social media shopping seemed to have many signs of disapproval that hasn’t seem to stop shoppers from using it for their purchases. When asked what would happen if they deleted their social media accounts, 43% said they would still spend about the same amount of money shopping. About a third said they would spent less but just over 20% said they would spend more.

Social media retailing – often called S-Commerce, is no danger of going away and is likely to be a foundation of the retail business for years to come. But understanding how shoppers feel about buying through social media may help sellers better tailor their selling efforts to provide a more satisfactory shopping experience.