- Nearly half (48%) of Gen Z (ages 18-27) and 40% of millennials (ages 28-43) say social media causes them to spend money they do not have.
- The top financial regrets Gen Z and millennials have from 2024 are not saving money (36% and 33%, respectively) and overspending (41% and 27%, respectively).
- A quarter (25%) of Gen Z plans to go on a social media diet in 2025 in pursuit of creating healthier financial habits.
Time and time again, social media platforms drive spending sprees among America’s youth. While rightful blame often points to sophisticated algorithms and seamless, few-click checkout experiences, the lure may also stem from culture – what’s hot right now, and who is promoting it?
According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,092 U.S. adults ages 18 and older, 48% of Gen Z and 40% of millennials say social media causes them to spend money they do not have. While this might seem like old news, it’s the more recent financial implications this trend may be having on young Americans’ finances that makes it timely.
A majority of Gen Z (86%) and millennials (77%) are leaving 2024 with financial regrets, and both generations’ top financial regrets include not saving money (36% of Gen Z and 33% of millennials) and overspending (41% of Gen Z and 27% of millennials).
Aesthetic-fueled spending
Various fashion and lifestyle trends have emerged and trended on social media this past year, influencing young Americans to open their wallets in pursuit of achieving their preferred aesthetic. According to the study, 69% of Gen Z and 58% of millennial social media users admit that social media trends have influenced them to spend money in 2024, with the top influential trend being “Old Money” – a fashion trend inspired by timeless, high-quality pieces, with less focus on brand logos, including tailored blazers, classic styles, etc – which has influenced 28% of Gen Z and 20% of millennial social media users to spend.
Here is a full breakdown of the different social media trends and aesthetics that have influenced Gen Z and millennial social media users to spend money:
| Social media trend / aesthetic | Gen Z | Millennials |
| Old Money – fashion trend inspired by timeless, high-quality pieces, with less focus on brand logos, including tailored blazers, classic styles, etc | 28% | 20% |
| Clean girl – the fashion trend of classy, minimalist and focused on high-quality styles and neutral color palettes | 23% | 17% |
| Glass skin – Korean beauty trend that describes a complexion that is so smooth, clear and radiant that it appears to be made of glass | 23% | 16% |
| Office siren – fashion trend that emphasizes exaggerated silhouettes and often pushes the boundaries of traditional corporate outfits including mini skirts, lacy stockings, cropped blouses | 17% | 17% |
| Mob wife – fashion trend inspired by Italian-American influenced style, focused on maximalism and loud luxury, including big furs, dark, colors, red accents, sultry makeup and flashy jewelry | 18% | 14% |
| Tomato girl summer – fashion trends inspired by southern European fashion and dressing for your dream vacation, including linen maxi dress, lace trims, sun-kissed makeup | 18% | 11% |
| Jelly nails – using a semi-sheer polish that leaves behind gummy candy shine | 17% | 14% |
| Glazed donut nails – long almond shaped painted with a nude/beige polish and topped with a sprinkle of chrome dust | 14% | 16% |
| Balletcore – the fashion trend of wearing anything feminine and comfortable that allows you to move freely, like a dancer | 14% | 14% |
| Tenniscore – fashion trends that focus on tennis-inspired sporty, stylish, and preppy designs | 13% | 14% |
| Coquette – the fashion trend of flirty and feminine, including details like lace, pearls, bows and pastels | 12% | 12% |
Was it worth the hype?
Social media’s influence on how consumers spend money would not be nearly as powerful without the influencers and celebrities who use these platforms to create content, and more often than not, push products. A majority of Gen Z (79%) and millennial (70%) social media users have made “hype purchases” in the past, and among them, 81% of Gen Z and 80% of millennials say they’ve regretted making such purchases. For the purposes of this study, “hype purchases” are defined as items/experiences that have gained popularity on social media, oftentimes because of an influencer or celebrity, that potentially result in consumers purchasing things they do not actually need.
Here is a full breakdown of the types of hype purchases made among Gen Z and millennial social media users who have made hype purchases, and those they regret purchasing:
| Hype purchase | Gen Z purchases | Gen Z regrets(among those who purchased) | Millennial purchases | Millennial regrets(among those who purchased) |
| Influencer promoted beauty products (i.e., skincare/makeup items promoted via social posts/reels or shared on a personal shop page) | 39% | 19% | 32% | 16% |
| Tech gadgets (i.e. electronics and tech products promoted or shared on social by influencers/celebrities) | 33% | 15% | 29% | 14% |
| Influencer-promoted clothing/accessories (i.e., items promoted via social posts/reels or shared on a personal shop page) | 33% | 18% | 28% | 15% |
| Influencer-promoted wellness products (i.e. wellness items promoted via social posts/reels or shared on a personal shop page) | 31% | 16% | 26% | 13% |
| Travel (i.e. trips/excursions promoted or shared on social by influencers/celebrities) | 28% | 13% | 18% | 8% |
| Themed food items or dining experiences (i.e. Erewhon’s Hailey Bieber smoothie, Popeye’s Megan Thee Stallion Hottie Sauce, MdDonald’s Mariah menu) | 23% | 12% | 30% | 20% |
| Celebrity-owned beauty products (Rhode, Rare Beauty, Kylie Cosmetics) | 22% | 9% | 26% | 10% |
| Celebrity owned clothing/accessories (e.g. KHY, Skimms, Savage X Fenty) | 22% | 9% | 23% | 10% |
| Alcohol (e.g. 181 Tequila by Kendall Jenner, Aviation Gin by Ryan Reynolds, Dos Hombres Mezcal by Byran Cranston and Aaron Paul) | 21% | 10% | 23% | 13% |
| Event tickets (e.g. Taylor Swift Eras tour, Super Bowl) | 20% | 9% | 21% | 8% |
| Designer collab home decor (i.e. home decor line collaboration between a popular designer and big box retailer, like Target) | 18% | 9% | 19% | 8% |
| Celebrity collab merchandise (e.g. Nike x Billie Eilish, Adidas x Yeezy) | 15% | 9% | 18% | 8% |
| Celebrity-owned wellness products (e.g. Goop, Lemme, Welleco) | 11% | 7% | 16% | 7% |
Social media habits in the new year
As young Americans reflect on their 2024 spending habits, some plan to be more conscientious in the new year as it relates to their use of social media. A majority of Gen Z (90%) and millennials (88%) are planning to implement tactics to create healthier financial habits in 2025, including participating in a personal finance challenge (31% of Gen Z, 29% of millennials) – which often gain popularity on social media – whether that’s committing to shopping significantly less than they did the year prior or taking a more mindful approach to shopping – or going on a social media diet (25% of Gen Z, 17% of millennials), which entails using social media less, or not at all.
“Credit Karma has conducted several studies this year that emphasize social media’s influence on consumers’ spending behaviors, whether they’re doom spending to cope with their emotions or booking travel after seeing other people’s vacations online,” said Courtney Alev, consumer financial advocate at Credit Karma. “Whatever the temptation may be, many different aspects of social media drive us to spend money, but it’s important to reflect on the purchases we’ve been influenced to make, and ask ourselves whether it was worth it or not. Trends come and go – and these days, at warp speed – so if you’re guilty of chasing down the latest and greatest product, trend or aesthetic, remember that it may have a short shelf life. Will you still get frequent use out of that expensive mob wife inspired leopard print coat next winter, or will you have moved on to a different style after one wear?”
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from November 25-27, 2024, among 2,092 U.S. adults ages 18 and older, among whom 350 are Gen Z ages 18-27 and 707 are Millennials ages 28-43). The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.