Half of Americans Make Financial Decisions Due to FOMO

A recent Empower study reveals that over half of Americans (51%) have made purchases or investments driven by financial FOMO, the fear of missing out on financial opportunities or experiences. This phenomenon is particularly prevalent among Gen Z, with nearly 70% experiencing financial FOMO, compared to lower percentages in older generations. Social media plays a central role, as 31% of people frequently compare their financial situations to others while scrolling, and 57% have made financial decisions based on lifestyle posts they see online. Financial FOMO often motivates spending on experiences like dining out and travel, but it also encourages positive financial behaviors such as investing, opening savings accounts, and improving debt repayment. Many individuals feel inspired or curious to learn more about finances when they see others’ financial achievements shared online. Overall, while financial FOMO prompts spending, it also serves as a catalyst for financial education and improved money management for many Americans.