Cost of Existing on Social Media

Statistics show what's on social media so a common motivation to spend more money. Not a few who end up trapped in debt. All of this is due to the cost of having to exist on social media.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/RADITYA HELABUMI

The audience was busy with their respective gadgets as Westlife personnel appeared on stage in the concert titled Westlife The Wild Dreams Tour-All The Hits 2023 at Madya Gelora Bung Karno Stadium, Jakarta, on Saturday (11/2/2023).

As soon as a number of concerts will be held in Indonesia, people start reminding them not to use online loans or borrow to buy tickets. The warning also appears when it's easy for people to shop and use online loans, but don't understand the consequences. Not only that, being present at someone's wedding also causes a debt trap. All of this is due to the cost of having to exist on social media.

Financial authorities continue to be cautious. On the one hand, they want financial technology facilities to develop well, but they hope this ease will prevent people from negative impacts. Debt trap numbers haven't appeared yet. However, online loan searches have become a common conversation among young people to meet their needs. They need money, but their salary is not enough. Finally, they turn to online loans because it's quick and easy.

In 2017, Malaysia warned of such problems. Due to dependence on social media and the need to adjust to a certain image on social media, the young market faces the risk of more complicated problems when it comes time to purchase needs, such as homes and cars, as they age. Authorities say the Bankruptcy Department has warned of the increasing number of young people who have "gone bankrupt" in the country due to debt traps.

The story in the United States (US) might be interesting to be a mirror. If in Indonesia wedding parties often leave debts, in the US wedding parties also cause around 62 percent of wedding guests to get stuck in debt based on a survey last April quoted from the Fox News page. This figure is up compared to the previous, namely 40 percent. Someone who attended and became a close friend of the bride and groom said that various needs to be present at the wedding cost around 1,000 US dollars.

Also read: There are Stars in Your Company

Apparently social media has pressured them to attend and have a role in luxury weddings. Social media also causes them to feel "like this, you know, a luxurious wedding". They also have dreams when they get married, they will be like that. The pressure of social media is real. Based on a Deloitte survey in 44 countries, social media has made 51 percent of Gen Z and 43 percent of millennials want to buy something they really can't afford.

The Ascent report states that statistics show what is present on social media is a common motivation for spending more money. In a study by Allianz Life, 61 percent of millennials said they feel unable to keep up with life due to what they see on social media. In addition, 57 percent said social media causes them to spend money because they fear missing out on opportunities to obtain goods or services.

Statistics show that what is on social media is a common motivation for spending more money.

Credit Karma has found that 39% of millennials have even borrowed money just to keep up with their friends' way of enjoying life. Excessive spending due to social media pressure may seem foolish, but many people fall into this trap. The stories we've heard are not just gossip, but real events happening in life. There are many very convincing ways on social media that make people spend more and get caught in debt.

The Ascent has given advice on how to reduce online loan debt traps. The simplest advice is to limit the amount of time spent on social media each day, which will also limit the amount of pressure to spend money. One good way to set strict social media time limits is to use apps such as Screen Time or Social Fever, which can track the amount of time spent on social networks.

KOMPAS/P RADITYA MAHENDRA YASA

Students attended a young stock education event held by the Central Java Indonesia Stock Exchange and Financial Services Authority at the Faculty of Economics, Semarang State University, Semarang City, Central Java on Monday (11/21/2022).

Also read: Tech Companies Dig Their Own Graves

Another solution is to remind ourselves that social media does not show everything. The image you see on social media is almost never the same as reality. Someone posting about a luxurious lifestyle or a photo of a trip that costs $10,000 USD could be in debt due to trying to live a lifestyle they cannot afford. Social media tends to highlight someone's life, so do not be misled into thinking that you are the only one who is not always on vacation.

Another suggestion is to save before shopping. There is nothing wrong with spending money on yourself, but it is much better to save first so that you do not get burdened by debt. One way to do this is by opening a new bank account that is dedicated solely to your desired purchases. Another option, if you are interested in traveling, is to use a travel credit card and pay as many points as you can.

For financial companies, it seems they cannot escape from this current issue. They must also act before the debt trap of young people becomes a big problem in the corporation. We certainly understand that young people have a high risk of entering into problem loans. Therefore, good communication will reduce this risk, including creating financial literacy that fits their lifestyle and needs. Regulation of advertising on social media also needs attention from authorities.

Also read: Layoffs and Lifestyle of CEOs of Technology Companies