It starts with just a few minutes of scrolling. Someone’s showing off their upgraded wardrobe. Another person is sipping iced coffee in Paris. A 22-year-old just bought their “dream car,” while another claims they’re retiring at 30 thanks to a mysterious and wildly lucrative side hustle. These snapshots of success, often carefully curated and edited, create an illusion of effortless achievement that can make anyone feel like they’re falling behind. Even if you're on track with your own goals, that flood of content can leave you feeling left behind and anxious.
It’s not just envy. It’s Financial FOMO: the Fear Of Missing Out on financial milestones or material success because of what you see on social media. Social media and money habits are more intertwined than ever, influencing everything from daily purchases to long-term savings goals. And for Gen Z, young adults, and parents of teens stepping into financial independence, it’s an issue that deserves real attention and understanding.
At Peoples Bank, we believe understanding your financial habits is the first step toward long-term stability, and we’re here to help you every step of the way.
Let’s break down what financial FOMO is, how social platforms fuel it, and most importantly, how to take back control of your wallet, mindset, and long-term goals.
What Is Financial FOMO (and Why Is It Dangerous)?
Financial FOMO is the anxiety or urgency to spend money because you feel like you’re falling behind others' lifestyles or financial achievements, often as portrayed on TikTok, Instagram, or YouTube.
This type of FOMO isn’t just emotional. It’s behavioral. It can lead to impulse purchases driven by trends rather than actual needs, overspending to keep up with others, and credit card debt that quietly builds up behind the scenes. Over time, it can also create anxiety or shame around your financial situation and lead to a disinterest in long-term saving, especially when short-term flexes feel more immediately rewarding.
Part of the danger is that social media feeds only show the best parts of people’s lives, the highlights, not the hard parts. You don’t see the budgeting mistakes, the paycheck-to-paycheck stress, or the student loans lurking beneath the surface. In reality, many people are spending just as much energy maintaining appearances as they are managing their actual finances.
Influencer Spending vs. Real Life
Let’s be honest: that influencer showing off a $2,000 “unboxing haul” probably didn’t pay for most of it. Many content creators on TikTok and Instagram are part of affiliate programs, have brand partnerships, or get paid directly to push luxury goods, skincare routines, or even financial products.
That means many influencers may not be spending their own money, as they’re often incentivized to make you feel like you should buy something. In some cases, they may even use debt or financing options to keep up appearances and maintain the lifestyle they showcase online.
In short, what you see is often more like an ad than real life. Trying to match that lifestyle on a college budget, entry-level salary, or while raising a family is a recipe for stress and long-term financial fallout.
Signs That Social Media Is Affecting Your Finances
Not sure if you’re getting caught in the comparison culture spending trap? Here are some red flags to watch out for:
- You feel worse about your life, wardrobe, or apartment after scrolling.
- You’ve made a purchase specifically because it was trending on TikTok. (If you're wondering how to stop spending from TikTok trends, the first step is recognizing the emotional triggers behind the scroll).
- You compare your financial progress to others' milestones, like buying a home or paying off debt, even though your situations are completely different.
- You’re hesitant to look at your bank account after impulse shopping.
- You believe you “should” be doing more, earning more, or owning more, even when you're meeting your own goals.
Social media can shift your perception of what’s “normal,” and that new normal often comes with a price tag.
5 Ways to Break the Comparison Trap
Instagram peer pressure finances can quietly lead to spending beyond your means, but the solution isn’t total unplugging; it’s mindful engagement. To succeed, you’ll need to reshape the way you engage with content and your own money habits.
1. Curate Your Feed
If certain influencers or brands consistently make you feel like you’re behind, it’s okay to unfollow. Mute accounts that fuel comparison, and follow creators who focus on realistic financial advice, lifestyle balance, or authenticity over flash.
2. Follow Creators Who Normalize Financial Wellness
There’s a growing community of creators sharing budgeting tips for Gen Z, affordable lifestyle content, and honest conversations about money. Fill your feed with people who share how they save, not just how they spend.
3. Try Screen-Time Limits or Detox Days
Set a daily limit on how long you scroll, or designate one “offline day” per week. This gives your brain a break from the pressure and makes room for real-life reflection.
4. Create a Financial Vision Board
Whether it’s a digital Pinterest board or notes on your fridge, list out your real goals: paying off your car, saving $1,000, building an emergency fund, or taking a debt-free trip. When your goals are visual and personal, they’re harder to ignore and easier to prioritize over peer pressure.
5. Celebrate the Small Wins
Comparison says, “You only saved $50?”
Real progress says, “That’s $50 closer to your goal.”
Whether it’s skipping a delivery order or automating your savings, every small step is proof that you’re investing in your future!
How Peoples Bank Can Help You Feel in Control Again
At Peoples Bank, we know the pressure is real, and we’re here to make managing your money feel realistic.
Here’s how we help customers stay grounded:
- Track your spending in real time with mobile banking tools and transaction alerts. You’ll know what’s coming in, what’s going out, and where you can adjust. You can also use My Money Manager to understand your spending and for better budgeting.
- Set up automatic savings plans that move money into your goals behind the scenes, perfect for building habits without overthinking it.
- Meet with a banker who can help you create a custom savings or debt payoff strategy that matches your current lifestyle.
- Explore account options that match your needs, whether you’re a student, young professional, or supporting financially independent kids:
- Checking accounts for everyday life
- Savings accounts and CDs to grow what you’ve already earned
- Access free financial education resources through our blog, with tools and articles for every life stage, from family budgeting to challenges that keep saving fun.
Whether you're trying to make sense of your finances post-scroll or helping your teen navigate early financial independence, we’re here to help.
Your Finances Are Not a Competition
Financial FOMO is real, but it doesn’t have to rule your life. What you see online is rarely the whole story. Your real power is in building a life that reflects your values, not someone else’s brand deal. You don’t have to “go viral” to be financially successful. You just have to stay consistent, stay grounded, and stay focused on what actually matters to you. And remember, it's better to have financial freedom that fits your life, not your feed.
Feeling ready to break free from the comparison game?
Peoples Bank is here to help you build a financial plan that reflects your goals, not someone else’s highlight reel. With local teams in Iowa, Minnesota, and South Dakota, we understand the real financial pressures you face and offer support that meets you where you are.