My, how times have changed. As housing and college prices have skyrocketed, the older generation is coming to realize that today's younger generation doesn't have it so easy. We might enjoy more everyday conveniences, but we also face a lot of new challenges.
And some of those challenges are psychological. We are bombarded with pressure form our peers -- to look a certain way, to buy specific things and to have particular experiences. And while, admittedly, every generation has experienced that to a degree, social media adds a whole new level to the old peer pressure.
Why All the Pressure?
When we see celebrities or the ultra-rich showing off their massive houses, it's easy to brush those images off as something unattainable. The same goes for their high-end designer clothes, luxury cars and private jets. A small part of us may desire those things, but we recognize that it's just fantasy.
The scenario drastically differs when we see our friends and acquaintances enjoying luxuries. Suddenly, all of those material possessions and pricey experiences seem normal, and reasonable. Hey, if Steve from my sophomore English class has a new Porsche now, don't I deserve a nicer car too? It's only natural to feel some envy. This is where Generation Y's sense of entitlement comes in. We feel entitled to so much because we know people who have all that great stuff. And we're constantly bombarded with photographic proof.
Our social media friends aren't trying to make us jealous.
In 2014, the average American has 350 friends on Facebook (FB), according to Statista, with younger people having significantly more than that. With that many people on your news feed, chances are that some will be boasting of things that you'll envy. A generation ago, if your friends wanted to show you their new house or big TV, you had visit them to see it: Temptation and jealousy weren't just a click away.
As motivational speaker Jim Rohn says, "You are the average of the five people you spend the most time with." So, people are likely to have similar levels of financial success to their closest friends. The level of envy among your closest friends usually wouldn't be very high -- otherwise you might not stay close friends with them too long. But with hundreds of not-as-close friends displaying their latest splurges on social media, envy is inescapable.
How Do We Avoid Social Media Lifestyle Inflation?
As much as we would benefit from avoiding social media lifestyle inflation, it's easier said than done. I haven't unfriended anyone, but I did remove most people's updates from showing up automatically. By restricting the automatic updates to only my family and close friends, I cut down on a significant amount of temptation. If I really want to see what Steve is up to, I can check his profile without seeing everyone else's eye candy.
Perhaps this strategy limits my social contact, but I do a lot of work on the computer and I want to stay efficient. This way I have more to talk about with friends when I do see them. It's not the typical conversation of today where you or your friend inevitably tell the other person that that news was already on Facebook.
If you do feel the need to track what everybody is up to, keep it all in perspective. Imagine it like an iceberg –- you may see what's above water, but there is way more that you are not seeing below the surface. Be realistic about your wants and needs. Don't let envy control your finances.
Jeremy Biberdorf blogs at modestmoney., a personal finance blog for everyday people. Check out his list of his favorite personal finance blogs.