More than half of Americans admit they've made a financial move—whether it's a purchase, an investment, or opening a credit card—because of what they saw online. According to a March survey by Empower, 57% say social media has influenced their financial decisions, and 73% say it’s changed how they spend, save, or invest.
Younger Generations Feel It The Most
Financial FOMO, or the fear of missing out on financial opportunities, hits hardest among Gen Z. Nearly 70% of Gen Z respondents say they feel financial FOMO while scrolling. Millennials and Gen X follow at 57%, and baby boomers are the least affected at 28%.
Don't Miss:
- Would You Have Invested in eBay or Uber Early? The Same Backers Are Betting on This Vacation Home Platform
- Kevin O'Leary Loves ‘Wonderful Recurring Cash Flows' — These Small Industrial Assets Deliver Just That
Gen Zers are more than twice as likely as millennials to have made a FOMO-driven purchase in the past week, at 11%. Meanwhile, millennials are about twice as likely as Gen Z to spend on travel because of it.
The most common spending categories? Dining out, which was cited by 21% of respondents, followed by travel at 18%, investments at 16%, and events like concerts at 15%.
FOMO sometimes causes people to spend impulsively, but many say it actually helps them build better money habits. Around 18% said they feel motivated to do well with their finances when they see friends or influencers share things like paying off debt or making extra money on the side. Another 16% said it made them curious to learn more.
Some say financial FOMO has led to more constructive choices: 15% said it pushed them to invest, 14% opened a savings account, and 13% took steps to improve their debt payoff strategy.
Trending: From Chipotle to Red Bull, Top Brands Are Already Building With Modern Mill's Tree-Free Wood Alternative — Here's How You Can Invest Too
Social media is also a growing source of financial education. Two-thirds of Americans say they actively seek out tips online, whether it's budgeting help, cited by 24%; side hustle inspiration, at 22%; or advice on long-term goals, at 19%.
Optimism Over Anxiety
Despite its downsides, social media isn't just a pressure cooker. For many, it’s also a source of optimism. More than half of people, or 57%, said social media made them feel more hopeful about their financial future. That number goes up to 78% for Gen Z and 70% for millennials.
In fact, 86% of Gen Z and 82% of millennials said seeing others reach milestones like becoming debt-free, achieving financial independence, or building passive income inspired them to take action on their own finances.
Still, the pressure is real. Gen Z is also the most likely group to feel anxious or self-conscious about their financial situation because of social media—18% say they feel this way, compared with 13% of millennials and Gen X, and just 6% of boomers.
See Also: The ECG Hasn't Changed in 100 Years — This AI Upgrade Could Help Detect Heart Disease Years Earlier
FOMO Isn't Just About Buying Things
Empower's findings show financial FOMO doesn't always result in consumer spending. For example, 20% of Gen Z say it motivated them to apply for a new credit card. About 11% of Americans overall said they invested in crypto because they didn't want to miss out.
Posts from friends and family, product reviews, and investment success stories all play a role. Whether it inspires people to make smarter financial moves or just keep up appearances, the effect is evident: people are paying attention—and reacting.
Read Next: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Image: Shutterstock
