3 Social Media Money Ideas You Should Ignore – and What to Do Instead

Social media has upended how much of society – and young people, in particular – absorb personal finance advice. What this means is that you can get a mixed bag of what to do and what not to, leading you to places that may not have your best interests in mind.

There’s a lot of helpful financial information out there, too. But a smart place to start, especially when it comes to social media “information,” is knowing what to avoid so you don’t get pulled into unhealthy spending trends.

1. Overconsumption on Social Media Posts: Shopping ‘Til You Drop

Social media can be a great distraction when it comes to short-term entertainment and learning some sweet new dance moves. Not so much when getting tips on the best ways to spend or save your dollars. The problem is that platforms like TikTok and Instagram are highly visual, which makes them ideal for sharing (and oversharing) images of purchasing and modeling luxury goods. These images are fun to look at, less so to emulate.

Roughly half of young adults in the U.S. are on TikTok. Otherwise intelligent people with budgeting skills can still get sucked into the peer pressures of hyper-consumerism on social media and end up racking up credit card debt without even realizing it. Just be sure to tune out before you start planning your own high-end shoe collection TikToks yourself.

2. “Money Dysmorphia” – A New Kind of Financial Insecurity

A new term has even been coined due to the recent social media trends and how they make people feel: money dysmorphia. This refers to the disconnect some people are reporting between the way they perceive their money situation and the reality of their finances. This can take on different forms, but the bottom line is the same. Social media can be great in many ways, but it can also become a source of confusion for people spending too much time on the apps.

If you tend to doom scroll, telling yourself it doesn’t matter how much you spend because of negative messages you’re constantly hearing, that can lead to a careless or unrealistic relationship with your money.

3. Debt Advice That Doesn’t Help Your Financial Situation

There is also plenty of smart money advice on the socials, including tips on how to deal with your debt. With so much debt information out there, a lot of it can sound great, only it may not apply to your situation. When you’re scrolling from one post to the next, it can be hard to separate messages that are helpful from ones that might lead you down the wrong path. For example, well-known money experts often talk about debt as though the same advice applies to everyone, sending out the message that all debt is bad.

The problem with this message is that most people accrue debt for a variety of reasons – buying a home, going to college or getting a technical degree being common ones. Swimming in debt is never good, but having some debt can actually be good for your credit score, since it demonstrates whether you are responsible in paying off your loans. If you are investing in your future, that could be the best thing to do right now. It’s your choice to figure out, so take any social media finance videos with a large grain of salt.

Solution to Bad Social Media Money Ideas: Shut Down Your Device

Things aren’t all doom and gloom. Young adults have seen their median wealth more than quadruple in recent years, according to the Wall Street Journal. But debt has also gone up during that time period. No matter what your age is, shut down your devices and get off the apps – especially ones bringing on those feelings that your situation isn’t good enough compared to some nameless influencer.

Stepping back from our devices can help us take a more sober look at our situation so that we can budget with a sense of calm, giving us a better sense of how much money is coming in our household and going out each month.

Get Trustworthy Financial Solutions from You Local CFSC Currency Exchange

Social media trends come and go, but Currency Exchanges have been providing helpful services to communities for decades. There are many convenient financial and auto-related services available at CFSC Currency Exchanges throughout the country. All of them are tried and tested so that you know just what you’re getting and that your money will be handled safely and securely. This applies to:

• Getting a prepaid debit card
• Using our check cashing service
• Avoiding late fees with our electronic bill payment service
• Small business money services
• Auto license services

Visit CFSC currency exchanges online for more on smart spending, budgeting and saving. To take advantage of our financial and auto services, stop by the closest CFSC location any time!