This article was reviewed by Jay Brecknell, CFP®.
We’ve never stopped trying to “keep up with the Jones’s.” Arguably, social media has only made it worse, as now we have the ability to see the “Jones’s” beyond our own neighbourhood. Whether we like it or not, social media has become a significant part of our daily lives, contributing to, influencing, and reinforcing our mindset, including our financial habits.
For younger generations, social media is not only influencing their spending habits, it’s affecting the pressure they feel to keep up with their peers and spend money they don’t have to live a life beyond their means.
In today’s digital age, our feeds are full of influencers with designer bags, going on exotic vacations, and providing investment “hacks” so we can all enjoy the good life too. According to a 2023 study, nearly 40% of millennials say social media influences them to spend money.
Social media is also becoming the place many young people turn to for financial advice. A 2023 BMO survey found that 33% of Gen Z and 22% of millennials in Canada refer to financial influencers and social media for investment decisions.
If you’re a parent or grandparent with adult children navigating these pressures, this article is for you. We’re breaking down how platforms like TikTok and Instagram influence younger Canadians’ financial behaviours and offering tips you can share with your family to help them build real, lasting wealth instead of chasing trends.
What Is Financial FOMO and Why Does It Matter?
FOMO is an acronym for the Fear of Missing Out, so financial FOMO is when people spend or invest because they are afraid they will miss out on life experiences or opportunities that their peers are enjoying or benefiting from. FOMO, while it may be a newer term, is not a new experience. People have long been comparing themselves to their neighbours and trying to keep up or outdo them; according to social comparison theory, it’s an instinctive means of measuring our self-worth. The difference is that the “neighbours” for today’s younger generations have expanded to millions of people online posting curated content.
Risks and Consequences of Financial FOMO for Canadian Millennials
Social media is directly impacting the way younger generations spend their money, with 16% of millennials and 85% of Gen Zs admitting to making significant purchases influenced by social media advertising. Financial FOMO can have serious financial consequences, such as:
- High-interest credit card debt
- Undermined long-term savings (retirement, emergency fund)
- Poor investment habits (chasing trends over long-term plans)
- Anxiety and shame around money
- Delayed financial milestones due to high levels of debt and decreased savings
To get a greater sense of the financial climate for millennials in particular, let’s look at a few notable statistics:
- The median debt for Canadian millennials stands at $35,400
- 87% of millennials carry some form of debt (including mortgages, auto loans, student loans, credit cards and others)
- In 2023, Canadians under 35 spent 9.7% of their disposable income on interest payments alone
- In 2022, Millennials, representing only 27% of the adult population, accounted for 49% of all consumer insolvency filings
Young Canadians are up against systemic issues (like housing affordability and education costs) and systems like social media and 24/7, one-click shopping intentionally designed to get them spending their money. Financial literacy is crucial but so is practicing critical thinking skills and values-based spending and investing habits.
Are “Finfluencers” a Trusted Source of Financial Information?
Young Canadians aren’t just being influenced online to spend their money, it’s also where they are going for their financial information. Let’s look at some statistics:
- 82% of Canadians aged 18-24 took investment advice from social media
- 40% of young investors say they believe the “finfluencers” they follow are trustworthy
- 48% of Gen Z use social media as their primary source for financial education
- 33% of Gen Z and 22% of millennials use social media or refer to “finfulencers” for their financial information
The trouble is, the majority of this information (approximately 71% according to one report) is misleading, and the same report found only 13% of influencers to have accreditation. Despite this, 40% of young investors say they believe the “finfluencers” they follow are trustworthy.
This isn’t to say all financial influencers are uneducated about finances and investing, or that all of their advice and information is false or misleading, but that young Canadians need to think critically about the advice they are receiving.
Financial advisors should earn your trust based on education, notable experience with advising clients successfully, and accreditation, not the number of followers they have, how viral their posts are, or how enviable their lifestyle is.
How to Avoid Financial FOMO: Five Practical Tips
While there are systemic issues affecting young Canadians today in regard to their finances, there is still plenty they can do to take control of their money, eliminate their debt, and save for a prosperous future. How, you may be asking? Here’s some advice:
- Track your triggers: Notice when and why you feel compelled to spend. Are there certain types of content or influencers who give you that FOMO feeling more than others?
- Set boundaries with social media: Unfollow accounts that trigger financial anxiety or who entice you to spend (or invest) money in ways that do not align with your budget or values. Instead, follow content creators who promote financial literacy or minimalism. It can also be helpful to set app time limits or create “no-scroll” hours to minimize your exposure and reduce FOMO.
- Reconnect with your financial values: What do you really want long-term? Financial freedom? Travel? A home? Early retirement? Use a values-based budgeting approach, spending only on things that align with your long-term goals and minimizing expenses that are not.
- Practice conscious spending: Typically, it is impulsive spending and investing that leads to trouble. Get in the habit of waiting at least 48 hours before making non-essential purchases and ask yourself if spending the money is truly aligned with your financial goals, if it is something that will bring you lasting joy, or if it is merely temporary fulfillment.
- Budget for indulgences: Similar to dieting, where being too restrictive can lead to overeating, being too restrictive with our spending habits can lead to bouts of overspending. Include a small sum in your monthly budget for indulgences.
How Working with a Financial Advisor Can Help You Avoid FOMO
Whether you’re looking to support your own children or just open the door to better conversations, a financial advisor can be a valuable partner. From educating younger family members to offering generational wealth planning, they can help bridge the gap between today’s flashy trends or a spending dopamine rush and tomorrow’s financial freedom.
- Personalized financial planning can help people stay grounded.
- Advisors can create a spending/saving framework that allows for joy and security.
- Helps people resist trends and focus on long-term wealth building.
Conclusion: Trade Pressure for Purpose
Most “finfluencers” aren’t sharing their credit card statements online or talking about buyer’s remorse. We are only getting the highlight reel, the edited cut of what they want us to see. It’s important to think critically about these accounts and what these “finfluencers” gain by promoting certain affiliate links, providing certain financial advice, and showcasing a glamorous lifestyle to their followers. To end on a positive note, younger Canadians are showing greater financial savvy, regularly evaluating their financial plans and goals, with 54% of Millennials and 62% of Gen Z reviewing their finances quarterly. What this shows us is that young Canadians are eager to improve their financial literacy and set themselves up for success; they simply need a little guidance beyond social media for how to do that best.
What is financial FOMO?
Financial FOMO is the fear of missing out on financial opportunities, experiences, or lifestyles due to comparisons on social media.
How does social media impact millennials’ finances?
It increases pressure to spend, promotes risky investment habits, and leads many to get financial advice from influencers over certified experts.
Can social media be a good source of financial advice?
Sometimes—but only if the source is qualified, accredited, and transparent. Most “finfluencers” are not financial professionals.
How can I talk to my kids and adult children about this?
Use real-life examples, ask questions about their money values, and offer to help them find a certified financial advisor they trust.