(BPT) - Over 1 in 2 Americans (51%) have made a purchase or investment due to financial FOMO - the fear of missing out on a financial opportunity or experience. New Empower research shows a comparison effect taking place: Nearly one-third (31%) say they often compare their financial situations with others while scrolling social media. But there is a sense of optimism in the act, as most people say seeing others achieve their financial milestones inspires them to improve their own money habits (71%).
Key takeaways
- Nearly 70% of Gen Z feels financial FOMO while scrolling social media.
- Americans are most likely to spend money on dining out (21%) and travel (18%) due to financial FOMO.
- Over 1 in 2 people (57%) have made a financial decision after seeing others' lifestyles online.
What is financial FOMO?
Half of Americans (51%) say seeing what others are buying on social media motivates them to spend money due to a fear of missing out. Of those who have made a purchase because of financial FOMO, 10% say they've done so within the past week.
Nearly 70% of Gen Z say they experience financial FOMO, compared to 57% of Millennials and Gen X and 28% of Baby Boomers. Gen Zers (11%) are also more than twice as likely as Millennials to have bought something within the past week due to financial FOMO.
Americans who do experience financial FOMO are most likely to spend money on experiences like dining out (21%) and travel (18%), but others say it's led them to make investments (16%) and spend at events like concerts (15%).
Financial FOMO can be positive
Nearly 1 in 5 Americans (18%) feel motivated to succeed when they see others post their financial wins like major purchases or investment gains on social media, and another 16% say it makes them curious to learn more.
Over 15% of those who experience financial FOMO say it inspires them to invest, while others say it's made them open a new savings account (14%) or improve their debt repayment strategy (13%). Broadly, 57% of people have made a financial decision after seeing others share their lifestyles online.
Nearly three in four (73%) have been inspired to spend money, invest, or change their saving habits due to financial FOMO - more specifically, after seeing posts shared by friends and family (15%), product recommendations and reviews (14%), or investment success stories (13%).
Social media inspires optimism for over half of Americans
Social media may be a primary driver of financial FOMO, but most Americans (57%) say it helps them feel more optimistic about their financial futures - and the number is even higher for Gen Z (78%) and Millennials (70%).
Specifically, Americans feel inspired to improve their finances by seeing people on social media reach financial milestones like becoming debt-free (22%), achieving financial independence (16%), and building a significant passive income stream (15%).
Broken down by age group, over 4 in 5 Gen Zers (86%) and Millennials (82%) and 3 in 4 Gen Xers (75%) say seeing financial milestones shared online motivates them to improve their own financial situations (compared to 48% of Baby Boomers).
Most people (66%) actively seek out financial educational content on social media, such as saving and budgeting tips (24%), side hustle inspiration (22%), and advice on reaching long-term financial goals (19%). Additionally, 1 in 5 (19%) say social media inspires them to pursue their financial goals and that it makes them feel less alone in their financial struggles.
Additional findings
Here are more findings from the study:
- Blockchain buzz: Despite the popularity of Bitcoin and other cryptocurrencies, only around 1 in 10 people (11%) have invested in crypto because of financial FOMO.
- New lines of credit: 1 in 5 Gen Zers (20%) has been inspired to apply for a new credit card due to financial FOMO.
- Social media anxieties: Gen Z is most likely to feel anxious or self-conscious when seeing others share financial wins (18% compared to 13% of Millennials and Gen X and 6% of Boomers).
- Millennials prioritize travel: Millennials (22%) are about twice as likely as Gen Zers (11%) to spend on travel due to financial FOMO.
Methodology
Empower's "Financial FOMO" survey is based on online responses from 1,092 Americans ages 18+ fielded by a third-party panel provider on March 28, 2025.
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