How new Facebook, Twitter features could leave you broke

Does using Facebook and Twitter make you spend more? The answer might seem like an obvious "no", but data suggests otherwise.

J. Crew's annual S.E.C filing revealed that customers who engage with the brand on Facebook, Twitter, Pinterest or Instagram spend twice as much as its average shoppers. According to the report, "Facebook is the current leading player in terms of size and time spent on site, but there are significant growth opportunities on our new visual platforms, such as Pinterest and Instagram."

Online sales make up one-third of J. Crew's revenue and the company also stated that digital marketing and social media are among their most effective marketing tools.

Additionally, a study from Keith Wilcox of Columbia Business School and Andrew T. Stephen of University of Pittsburgh found that Facebook users who spend longer periods of time using the social network and have strong online social networks are more likely to have lower credit scores and more credit card debt than users who use the site less frequently and have weaker social networks.

During the study's experiments, self-control failed the users with stronger social networks, leading to overeating and impulse shopping. Stephen explained the findings to AARP: "When you're happy, feeling good about your friends, you let your guard down. You're not focusing on your long-term well-being, you're focused on now."
New "Buy It Now" Features

Social media users who already struggle with keeping a budget are going to find it even harder to keep impulse shopping at bay. Twitter and Facebook both recently began testing new features that allow users to buy products directly from the sites. Twitter is currently testing a "Buy" button that allows users to buy directly from a tweet. The social media giant is planning on using the tool to deliver exclusive offers and the ability to purchase products directly within the Android and iOS apps.

Facebook is also testing a similar feature, with a "Buy" call-to-action button on ads and page posts that allows fans to purchase directly from a business without leaving the site. Users can add a credit card on file with Facebook to save for future purchases or they can just check out without saving their payment information.

Both Twitter and Facebook are only in the testing phase, with just a handful of brands participating, but users should expect these features to roll out next year.

Brands and businesses who market to consumers on social media are sure to be pleased with these changes — determining the return on investment for social media has historically been difficult and many brands have also had a hard time converting their social following to direct sales.

Related: Your Social Media Profile Could Get You Rejected for a Loan

From Friending to Spending

Social media probably already influences your spending habits; you just haven't been aware of it. More than 81 percent of consumers say that the posts from their social media networks influence their purchasing decisions. The addition of a "Buy" call-to-action will make it that much easier for social media users to learn about a product and make a purchase, completing the buying cycle without ever leaving the site.

Personal finance experts have long been warning about the dangers of storing credit card information, making it too easy for consumers to make impulse purchases and remain blissfully ignorant about how much they are really spending. These new features could only exacerbate the problem, as consumers will have little time to contemplate making purchases.

So, is it time to give up your favorite social networks in favor of sticking to your budget? Probably not. There are still plenty of good reasons for consumers to indulge in social media: keeping up-to-date with family and friends, reading news, spying on exes and childhood bullies, silently judging your sister-in-law… I might be getting too personal here.

Related: How Online Banking Evolved Into a Mainstream Financial Tool

Here are three ways you can still indulge in Twitter and Facebook while avoiding the social spending trap.

1. Educate Yourself

Knowledge is power and being aware of the issue is the first step in fighting it. Wilcox told Today, "Ultimately, the way you counteract this is by raising your self-awareness. It's not about don't spend time on Facebook, but just be aware of what it might be doing to you."

2. Clear Your Cache and Cookies

Have you ever done a little online shopping only to find the same products you were looking at being advertised the next time you logged into Facebook? Brands frequently cookie consumers and retarget them with Facebook ads (and plenty of other online ads). You can avoid this by clearing your cache and cookies on a regular basis. When ads start to follow you around the internet, it's time to clear again.

3. Don't Store Your Credit Card Information on Social Media Sites

This can buy you time to properly think through making the purchase. Is the item really worth looking for your wallet, digging out your credit card, entering the information, and providing your billing and shipping info? Those are pretty simple steps, so if even that feels like a hurdle, you probably don't really need (or want) the item.

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