Survey shows social media inspires purchases and vacations among millennials

By

Obi Anyanwu

Published
Aug 24, 2016

FOMO, or “Fear of Missing Out,” is an acronym created during this social media age that best describes the age we’re currently in. Everyday people agree to plans out of fear of missing out on a fun night or fear of not contributing to social media feeds. “Keeping up with the Joneses” has gone digital and the American Institute of CPAS (AICPA) has released survey results that prove it.
 

Harris Poll, on behalf of the AICPA, found that Americans are caught in a cycle of feeling envious of friends and admit that they post things solely because they seem fancy and expensive. The telephone survey polled 1,012 adults in the US in June and found that 67% have social media accounts, and of those people, 48% visit their most frequently used account more than once a day. In addition, 47% of all Americans with social media accounts have posted vacation photos in the past year.
 
The survey added that 39% of adults with a social media account say that other people’s purchases or vacations make them look into similar purchases or vacations, and 25% admit to feeling envious after seeing the purchase or vacation on social media. Only 11% act upon their interest and take a vacation or make a purchase after seeing someone’s post.

Seeing the purchase or vacation is not the only activity driver however. 21% of US adults with social media accounts choose an activity or purchase based on how friends and family will view it on social media, and 14% of US adults with social media accounts posted about something because it seemed fancy or expensive.
 
US millennials are twice as likely as baby boomers to say the reaction on social media from friends and family affected their likelihood to make a purchase or select an activity, and millennials were twice as likely to feel envious about a friend’s purchase or vacation.
 
“Social media has vastly expanded the number of ‘neighbors’ people are trying to keep up with. That can lead to a feeling of financial inadequacy and a desire to spend money you may not have,” said Gregory Anton, CPA, CGMA, chair of the AICPA’s National CPA Financial Literacy Commission. “People, in particular those just beginning their careers, would be better served spending their money maxing out their 401(k) and paying down debt instead of trying to one-up their friends on social media. While smart financial moves may not get the most likes or retweets, building a solid financial foundation should take priority over building a social media following.”
 
This year’s Harris Poll was conducted over telephone between June 23-26, 2016 among 505 men and 507 women aged 18 and over.