Influenced into debt: How social media impacts Canadians' finances

Social media has become deeply embedded in how we communicate, connect, and receive information. Canadians spend almost two hours a day scrolling, liking, and consuming content. While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. But are these purchases helping them make smarter choices, or are they driving them deeper into debt?

Our latest survey takes a closer look at how social media influences spending habits across Canada—and what it means for your financial health.

Keeping up with the trends

Influencer marketing has changed how we shop. Instead of ads, we now see real people sharing product picks, daily routines, and “must-have” items—and it’s working.

• 57% of Canadians say social media has influenced them to buy something they wouldn’t have otherwise.

• 1 in 3 (33%) admit they stretched their budget to make those purchases.

• 1 in 5 (19%) have even taken on debt because of it.

Influencer marketing is designed to make products feel relatable and desirable. But when spending becomes emotional or impulsive, it can lead to financial stress.

The real cost of keeping up

Scrolling feels harmless—but the impulsive spending can add up fast. 60% of Canadians have bought at least one product they saw on social media in the past year.

• Nearly half of social media shoppers spend between $50 and $200 on purchases.

• The average Canadian spends $358 annually on social media recommendations.

At the same time, household budgets are tight and are only continuing to get tighter. Our 2024 study revealed that only a third of Canadians can afford any increase in their living expenses. Many Canadians are already living paycheque to paycheque, and even small costs—such as impulsive purchases—can create financial pressure.

The dopamine diet—why it feels so good to spend online

Online spending feels rewarding, and there’s a reason for that. Money is attached to so many parts of our lives, including our emotions and mental health. Despite stretching or breaking their budgets, 63% of Canadians associate at least one positive emotion with social media spending. The most common emotions are:

• Satisfaction (42%)

• Excitement (29%)

• Happiness (21%)

But there’s another side to the story, especially for younger Canadians. 58% of Gen-Z remain conflicted about their online shopping habits, with the leading negative sentiments being guilt (34%), regret (28%), and anxiety (26%). This cycle—feel good now, worry later—can make it harder to break spending habits, especially when content is constant.

When social media leads to debt

Canadians might be interested in the products they see online but have resisted emulating the expensive lifestyles of their favourite influencers. Only 1 in 10 (12%) have taken on debt to upkeep their own social media appearance or lifestyle.

Additionally, Buy Now Pay Later adoption remains low with only 12% of Canadians using these programs in the last 12 months. While that may seem low, any type of borrowing tied to impulse spending can increase financial risk if it’s not managed carefully. Check out our blog to learn about the real cost of buy now, pay later programs.

De-influencing debt

You don’t need to quit social media—but being mindful can help protect your finances. Here are a few simple tips:

• Pause before you buy. Give yourself 24 hours before making a purchase; many impulsive desires end up fading quickly.

• Set a “social media spending” budget. If you truly enjoy buying products you see online, set a limit that fits your income.

• Unfollow when needed. If certain accounts make you feel pressured to spend, it’s okay to step back.

• Focus on your priorities. Ask yourself: “Does this help my goals, or distract from them?”

If you’re feeling the pressure, you’re not alone. Social media makes it easy to compare—but your financial journey is your own. If you’re feeling stretched thin, behind on bills, or worried about overwhelming debt, there are options. Our debt solutions professionals work with Canadians every day to find practical, judgement-free solutions. The first step is understanding your situation, book a free consultation today.