Social Media’s Financial Influence: How it Affects Your Money

You may not even realise it, but your social media feeds are having a huge effect on your finances. Maybe you’re the type of person who doesn’t feel they are affected by ads online and can scroll by without being influenced. However, with so many businesses having an active social media presence and promoting themselves via advertising and sponsored posts, you may find yourself being subliminally influenced. With a reported 49% of millennials saying social media has influenced them to spend money, and 48% saying they’ve overspent as a direct consequence, how can you avoid doing so?

The Rise of Social Media In Finance Circles

It’s not just lenders who are using social media to market to the wider public, most industries have active feeds through social media to be able to connect with their customers. In the UK alone, there is projected to be 42.88 million social network users by 2022. This presents a huge potential for companies and industries, from food and drink to banking, to market directly towards them. You may have noticed over the last few years just how social networks such as Instagram, Twitter and Facebook have changed in terms of advertising. The way algorithms work to show you more of what you like to see and interact with has meant more personalised ads. The downside to this when it comes to finance is you may miss out on the best deals and products available, whilst still seeing things you want to buy.

There are many lenders available online that can offer you financial assistance when you need it most, such as a payday loan for a financial emergency. Whilst promotion and advertisement of high-cost lending products through social channels and in the online realm such as on Google, have been banned in the last few years, you may still come across social posts from lenders offering helpful advice or insight instead. These restrictions have also led to some lenders finding alternative methods, such as posting in online forums, chats and local selling pages to talk about their products. The problem is, if you find lenders in this way and choose to then borrow through them, how can you be sure you’ve got the best product or rates?

With 54% of millennials using social channels to research products before buying,you could be missing out on finding a fair comparison of different lenders, their products and their rates if you do not conduct thorough research first. According to reports, 59% of consumers say personalisation influences their shopping decision, with 31% saying they wish their shopping experience was far more personalised than it is.While some forms of personal lending can be restricted from different types ofadvertising methods, some lenders may utilise different forms of organic social media in order to maintain a presence and personalise the research experience for their consumers. Conducting thorough research across organic social media and also across the internet, can help you to make a decision most suitable to your needs.

Social Media for the Finance Industry

With 49 of the top 50 financial service companies on social media, this means there are many looking for your attention by targeting your social feeds. As users, we have come to expect to see a platform that connects almost everyone around the world, which is equally used to sell us products and experiences. For this reason, it’s more difficult than ever to ensure you’re making an informed choice. At Wizzcash, we’re an ethical lender of short term loansand know the importance of our customers having a balanced overview of the market. Conducting thorough research around a lender before making any decision, can allow you to assess the trustworthiness and suitability of that lender to help ensure you are only borrowing what you need and what you can afford to pay back.

 Social Media Finance Influencers

Beyond financial companies, the rise in the social influencer has had a huge impact on the way we spend money. Many companies will approach individuals with an activeand large following so that their products can be advertised. This isn’t always obvious when an influencer is selling a product or experience, with the idea being its part of their normal routine and lifestyle. With 67% of social media consumers aspiring to be paid influencers, many people aspire to help this form of advertising grow even further. From a business point of view, in the US $255 million is spent on influencer marketing every month, with this only set to rise in the coming years. Can you avoid social media and the influenceit can have on your finances? It’s increasingly difficult to do so.

Social media platforms have enabled consumers to connect with businesses in a way unimaginable only a few decades ago. Consumers have the power to choose who they interact with and control over online privacy is becoming more accessible every year. A recent global eCommerce survey found that 53% of global consumers want brands to put a higher priority on respecting their privacy. The interaction companies and their customers have through social media means working together for the better.

Keep Social Media’s Influence in Mind

The best way to counter the growing social media influence on your finances is to be mindful. You may actively see people you follow, from friends to celebrities, selling you their lifestyle and spending habits. It’s easy to start having a ‘fear of missing out’ (FOMO) related debt crisis of your own and applying for lending you can’t actually afford to pay back. 52% of UK consumers get into debt using credit cards, overdrafts and borrowing from their partner because of socialising debt. Being able to focus on your own finances without heavy influences from social media on how you should be spending your money will help create a better spending habit. That way, many will avoid falling into a cycle of spending and borrowing beyond their means.

At Wizzcash, we can offer short term lending when you need it most for the important things in life such as an emergency situation. Whether you have had a cash crisis due to an unexpected repair bill or you need a small amount to cover an emergency expense, we can help you do so responsibly. If you have any queries, please do contact us.