What is "financial FOMO" and how can you avoid it?

We’ve all heard the old adage that “Comparison is the thief of joy”, but social media has given us an unfiltered view of how true that can be. Imagine you're scrolling through Instagram — one friend’s at a music festival, another just bought a house, and someone else is flaunting a screenshot of their latest crypto win. Suddenly, you’re wondering if you’re falling behind, if you’re making the right financial moves, and are overwhelmed by the number of hypothetical choices you’ve got. 

That feeling has a name: financial FOMO — the fear of missing out on financial opportunities, milestones, or even lifestyle upgrades.

According to new research from Empower, over half of Americans (51%) say they’ve spent money or made an investment decision because of financial FOMO. That number jumps to nearly 70% for Gen Z, who are most likely to feel anxious or self-conscious when seeing others post financial wins online. Financial FOMO often fuels everyday spending, too, especially on dining out (21%), travel (18%), and concerts or events (15%). Others report making investment decisions (16%) or even applying for new credit cards (20% of Gen Z) after seeing someone else do it.

But FOMO isn’t all bad.

A surprising 73% of Americans say social media has motivated them to improve their money habits. From budgeting tips to success stories about becoming debt-free or financially independent, social platforms are inspiring people to set new goals and feel more optimistic about their financial futures. For many, it’s a wake-up call — not just a trigger.

So, how do you keep financial FOMO from sabotaging your wallet?

• Pause before you pounce: If you feel the urge to buy or invest right after scrolling, take a beat. Ask yourself: Is this really for me?

• Compare with care: Someone else’s highlight reel isn’t your full story. Use it as inspiration, not a measuring stick.

• Set your own benchmarks: Align spending with your goals, not someone else's.

• Curate your feed: Follow creators who make you feel informed and empowered — not just envious.

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