Rent, credit card bills and student loans call can make it more difficult to save money, especially for younger people. Now, according to a new study from the Allianz Life Insurance Company of North America, you can add social media to that list, too.
While Internet advertising has the potential to rake in millions of dollars per year, it isn't the only thing tugging at your wallet via social media, either. Allianz argues peer pressure on social media is part of the problem.
The study, which examined social media's impact on American spending habits, found that nearly 90 percent of millennial respondents say social media creates a tendency to compare their own wealth or lifestyle to that of their peers. That's compared to 71 percent of those in Generation X and 54 percent of Baby Boomers who say the same.
About 60 percent of millennials report feeling "inadequate" about their own life because of something they saw on social media, like flashy clothing or vacations, the study notes. And, as a result, 57 percent say they parted with money they hadn't planned to spend.
But, along with the "fear of missing out" on a new item, trend or experience, advertising does of course play its part in tempting you to splurge. Last year, Facebook brought in $39.9 billion of revenue from ads alone. Instagram recently rolled out Instagram Shopping, which allows people to view product descriptions and pricing. And other social media platforms facilitate monetary transactions directly from the website or app.