Overspending, defined as spending beyond one’s financial capacity, increases debt and reduces household financial stability (Achtziger et al., 2022). In today’s digital economy, social media platforms such as Instagram, TikTok, and Facebook amplify overspending through targeted advertising, peer consumption cues, and influencer promotions. These features heighten impulsive purchasing and financial vulnerability, especially among younger adults (Sotiropoulos & d’Astous, 2012; Tippmann, 2023). Motivations also vary across the life course: younger consumers often overspend to establish identity or status, whereas older adults may overspend to maintain lifestyles or manage stress (Parnes, 2019). With older generations increasingly active on social media (Minu et al., 2023), this study examines whether the relationship between social media use and overspending differs across generational cohorts in the United States, using nationally representative data from the 2021 National Financial Capability Study (NFCS).
