3 Impulse Spending Habits Gen Z Will Regret 20 Years From Now
Social media has convinced many in Gen Z to impulse purchase things they don’t really need — a bad habit that could lead to regret in the future. The prevalence of social media, online marketing, peer pressure, the fear of missing out (FOMO) and the general presence of thousands of things vying for their attention and wallet could lead these kids and young adults (ages 18 to 26) down a path of overspending. Years from now, Gen Z will regret these impulsive spending habits.
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1. Social Media and Overspending
A survey from Lending Tree revealed that Gen Zers, on average, spend upwards of $2,000 a year on beauty products and services. Over half of them (52%) overvalue their appearance and have come to regret spending as much.
Social media was a driving influence, according to 64% of Gen Z, and 57% go further and spend more for higher-end products. Analysts report that we live in an “influencer culture” where the trending cosmetic-related Instagram, TikTok and YouTube posts encourage continual spending.
The relatively low cost of many of these items lends itself to overspending because it’s easy not to notice the expenses adding up until it’s already become an alarming amount. It doesn’t end with buying the product, though. After all, a big part of social media is comparing oneself to their peers. FOMO has them posting about their own purchases, and this need to be seen simply propagates the viral trend further.
2. Tricky Marketing Strategies
The products showing up on social media feeds are tempting enough, but companies don’t stop there. They apply traditional marketing strategies on these platforms, which only makes them more lucrative. One method is to offer discounts or free shipping based on a threshold that purchasers are likely below with their initial purchase. Another is allowing purchasers to save their payment information on the site. Not only is this a risky security decision, but it also makes it easier to engage in future purchases with less time to change your mind.
One of the worst offenders is the “sale” indicator, which they’ll place on expensive items. They’re banking on you to focus on the dollar amount that you would save. Because these products are already expensive, it’s easy for the business to regularly offer them this way — thus tempting repeat consumers and attracting new ones.
3. Short-Term Regret, Long-Term Regret
Based on a survey from Bankrate, 60% of Gen Zers bought a product on impulse after seeing it on social media. Of those, 58% say that they regret one or more of these impulse-fueled decisions. When we factor in how much is being spent each year, we see how regret also will present itself years from now when they see the total amount they’ve spent over 20 years, Spending $2,000 a year, give or take, comes out to roughly $40,000 in two decades.
Whether it’s cosmetics, shoes or jewelry, that’s tens of thousands of dollars spent on unnecessary things, bought on impulse. Compounding that with the necessary expenses, from food to energy bills, makes it all the more apparent how much could’ve been saved and put towards important purchases.
What You Can Do
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It just so happens that social media is also home to people who want to help you not spend as much. A way Gen Zers can try to curb their impulsive behavior is by following a financial influencer. If they’re concerned enough, they can consult a financial advisor — they have a cost, though it’s certainly a wiser investment.
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This article originally appeared on GOBankingRates.com: 3 Impulse Spending Habits Gen Z Will Regret 20 Years From Now
