By Naadiya Omar
Let’s be real—whether you’re scrolling through Instagram at 2am or binge-watching TikToks, you’re bombarded with ads telling you what to buy next. Influencers flaunt their outfits, skincare routines, and even the latest air fryers (do we really need five models of those?). But have you ever wondered what this constant cycle of consumption is doing to your bank account? Spoiler: It’s not pretty.
As an accounting major, I’m here to reveal how companies, influencers, and their financial teams are strategising like chess masters while we’re stuck on the board game of consumerism.
Overconsumption: The Swipe-Up Economy
Let’s start with overconsumption, the habit we all know too well. Companies love people who buy too much—why? Because they track how much money you’re likely to spend over your lifetime. Every time you hit Add to Cart, they’re calculating how much they can squeeze out of you, not just today but for years to come.
They also look at how much money they spend on ads versus how much they’re making from you. It’s a simple equation: if they spend $1 on ads but you spend $5 because of it, they’ve won. And when your favourite influencer tells you that you “need” that $300 skincare routine, it’s not just a coincidence—it’s part of a plan to keep you buying.
The ‘Underconsumption’ Trend
On the other hand, the new underconsumption trend is all about buying less but buying better. You’ve probably seen influencers flaunting their minimalist lifestyles: capsule wardrobes, reusable water bottles, eco-friendly makeup. It’s all about owning fewer things but of higher quality.
From a business standpoint, companies love this too. But they’re not relying on you buying tons of stuff anymore. Instead, they want you to buy something really good once—and then stick with them for life. They’re spending money to get you as a customer, and they’re betting you’ll come back again and again because you love that brand. It’s slow and steady, and in the long run, they know you’ll spend more.
Influencers: The Investments We Don’t See
Now, let’s talk influencers. We follow them for inspiration, but brands treat them as investments. Companies figure out how much they should spend on influencers by predicting how much you’ll buy because of that one Instagram post.
Let’s break it down: if a company pays $10,000 for an influencer to post about their product, and they make $100,000 in sales because of it, they see that as a solid win. And all that money spent on influencers? It gets recorded in the company’s financial books, just like any other business expense. In the end, it’s all a calculated risk for the brand—and they’re playing with your attention.
Loyalty: How Brands Track Your Every Move
Let’s not forget loyalty programs—the little points and perks that keep you coming back for more. Whether it’s free coffees or discounts on your next purchase, these loyalty rewards aren’t just about being nice. Companies are tracking how often you shop and how much you spend.
They’ve got data on you—lots of it. They use this data to figure out how valuable you are as a customer. The more you spend and the more loyal you are, the better it looks in their financial forecasts. You’re not just a number to them—you’re a future income stream they can count on.
So, How Does This Affect You?
Let’s bring this back to reality—where we’re all broke university students trying to juggle rent, food, and maybe the occasional overpriced iced coffee. Overconsumption doesn’t just mess with your bank account—it’s a fast track to financial stress. Constantly buying the latest ‘must-have’ items means less money for things like savings, investing, or, you know, having a life.
On the flip side, underconsumption (or minimalism) might actually be a smarter move. It’s not about never buying anything—it’s about buying things that last, things that matter. Not only does it save money in the long run, but it also forces you to be more intentional with your spending. Brands know this, which is why they’ve shifted their focus towards quality over quantity. They’re still getting your money—just slower.
The Bottom Line: How to Outsmart the System
Here’s the kicker: once you understand how companies and influencers use these strategies to get you to spend, you can actually use it to your advantage. The next time you’re about to buy something just because an influencer swears by it, ask yourself, “Do I really need this, or am I just a walking dollar sign to them?”
The more you know about the financial game behind the scenes, the easier it becomes to resist impulsive buys and stick to what’s actually important. So next time you’re tempted to swipe up on that ‘limited edition’ hoodie, think twice—not just about whether you want it, but about how these brands are using every trick in the book to get you to part with your cash.
Because at the end of the day, understanding the numbers isn’t just for accountants—it’s for anyone who wants to keep their wallet full and their stress levels low.
I’m Naadiya, a soon-to-be Accounting Graduate. Through my studies and experiences, I’ve gained a deeper understanding of the world around me, particularly in the realm of consumerism. As I step into this next chapter of my life, I’m committed to being more mindful of my choices and helping those around me while continuing to learn and make informed decisions. Lately, I’ve been asking myself: why am I so easily influenced by ads? This question inspired my article, where I explore how to create a healthier relationship with shopping. My love of shopping fuels my passion, but I’m also focused on balancing that with a sustainable lifestyle and resisting making any more impulse purchases than I have already done—because my bank account has had enough surprises for one semester!
