Is Social Media Causing You to Overspend This Back-to-School Season?
Summer vacation is slowly ending and it’s time to prepare for a new season: Back-to-School. According to PWC, families expect to spend nearly $1,000 on their children during the back-to-school season (2026). High inflation may be making this season more difficult, but it’s not the only factor behind rising school supply costs.
At McCoy Federal Credit Union, we want to help you recognize how social media influences spending decisions. Keep reading to learn more about how school-related expenses can get unnecessarily pricey.
The More Digitally Engaged the Shopper, The Greater the Spending Potential.
GreenPath Financial Wellness, a trusted national nonprofit, shares that social shopping has become normalized and eliminates the decision-making process. It has turned “I want that” into “I need that.” Casual scrolling can quickly lead to unplanned purchases. Digital tools are altering the back-to-school shopping space, indicating that only those income groups less technically inclined will be unaffected.
Keeping Up with the Joneses
Social media amplifies this concept with users getting nonstop input from their favorite influencers about what they need. Some accounts can even trigger more spending. Social platforms give snapshots and not full pictures for what reality is. There is a sense of pressure from curated feeds to have a certain product or wear something brand new.
TIP 1: It is perfectly acceptable to discover something new that intrigues you. However, separate discovery from decision-making. Determine if you need THIS specific backpack or if a more affordable option would serve you just as well. Mute accounts that encourage you to open your virtual wallet.
Frictionless Checkout
Purchasing materials has never been easier with contactless payments and digital wallets. PWC found that 61% of families allowed their children to add items straight to the digital cart for school shopping. With in-app shopping options like Amazon, there’s no searching for stores or separate websites for specific items. You buy everything you need all in one place.
TIP 2: Are you comparing prices at different stores? Convenience costs. Brick-and-mortar stores make you think twice about spending. Consider taking your children to the mall with a fixed amount of cash they can spend on clothes and shoes. This teaches them the value of money and saves your budget by taking advantage of store discounts.
Manufactured Scarcity Cues
Countdown timers and “claims” of how few items are left influence your decision-making by building a sense of urgency. This tactic creates a perception of scarcity for the shopper and encourages them to act fast.
TIP 3: Sometimes the best choice we can make when it comes to items we think we need, is to wait. Try purchasing Day-One essentials for back-to-school before the first day. Most stores significantly drop the price of supplies after the first day of school.
Buy Now, Pay Later Traps
Beware of checkout options like AfterPay and Klarna that make purchases feel smaller than they are. If you’re not careful, a simple $100 purchase can turn into more if not paid back in time. This checkout option is no different than swiping a credit card.
TIP 4: Before hitting that BNPL option, ask yourself one question. Would you feel different if you had to pay for the item in full, today?
