Our week at Money and Mental Health: exploring how social media influences our spending and mental health

Last week we joined the Money and Mental Health Policy Institute for a summer work experience placement. We are both A-level students at state schools in London. Amalia Rhiana has recently finished studying politics, history and sociology, while Zina is currently studying law, psychology and sociology. 

During the week, we analysed responses of a survey of Money and Mental Health’s Research Community exploring how social media impacts people’s spending habits and mental health problems.

More than nine in 10 respondents stated that they currently use social media platforms, with more than four in five of this group using these sites or apps for over an hour per day. 

Our analysis found that people felt the negative impacts of social media were strong, with platforms often promoting content that has harmful effects on people’s mental and financial wellbeing. Research community members shared that they felt things such as scams were commonly encountered on social media sites. Meanwhile, one in six people suggested that there is no good impact from social media at all on their mental health or financial wellbeing.

Nearly a third (29%) of people had fallen into financial difficulty from overspending as a result of advertisements or sponsored content on social media. People highlighted that pressure and encouragement to spend on social media platforms has the biggest impact on their financial wellbeing, while the most common negative impact on their mental health was the constant comparison of their lives with others on social media platforms.

There is some evidence that people are using social media, at least in part, to provide temporary relief for their mental health problems. People often referred to the ‘dopamine’ effect when describing how mental health issues can lead to them spending money via social media. This can then create scenarios where people spend money in order to feel ‘good’. A previous Money and Mental Health report, Money on your mind, found that 72% of respondents said their mental health problems had made their financial situation worse, highlighting the risks with spending to fix mental health problems.

The frequency of advertising and marketing selling products to people was an example of the sense of urgency that these platforms can create, making people feel pressured into spending more than they can afford.

There were some positive effects from social media use too. Members of the Research Community told us social media sometimes had a positive impact by enabling them to find opportunities to save and earn money. Social media platforms also provided connection with the world around them – helping people with existing mental health conditions to not feel as isolated.

From the responses it emerged that despite social media having both positive and negative impacts, the features of the platforms tend to promote lifestyles and financial decision making that may not be in line with their current financial reality. As recommended in Money and Mental Health’s Safety Net report, there are steps that can be taken: 

• Government and regulators acting to address gaps in consumer protections online, which are leaving people with mental health problems exposed to financial harm and distress.
• Tech companies reconsidering the design of online platforms, and giving people more ways to stay in control online — such as the ability to set spending limits or to opt out of marketing nudges to reduce the risk of financial harm. 
• Giving regulators more powers to tackle financial harm online.

Overall, this experience has been valuable for both of us. It was an opportunity for us to enhance our analytical skills through working with real, lived experience survey data, and communication skills through blog writing and teamwork. It has also been an insightful experience for us to gain a deeper understanding of the charity sector and the ways in which research can drive real world change.