In the 20th century, technology has become a big part of our lives causing distractions from the real world. Over the course of years, social media has grown, where daily people scroll, swipe and tap through hundreds of videos and different types of advertisements each day, without realizing how often these constant digital interruptions influence their spending habits. Increasing evidence from consumer behaviour suggests that the constant digital distractions lead to more spending as there’s no focus on the long-term financial impact, instead the focus is on the satisfaction from spending, and getting the intended items. 

Modern tech companies compete for a key resource: our attention. Every second of consumer focus can turn into potential profit benefit therefore social media platforms, online stores, and entertainment apps use algorithms to keep users engaged as much as possible. Companies usually have access to the data present in a consumer's data which ranges from transactional to anything browsed. Moreover they use this data to create predictive algorithms to later put on your feed. When people are distracted by endless scrolling, they are more exposed to different types of advertisements and subtle persuasion to buy. The more inattentive we are as consumers, the more opportunities businesses have to sell a product. Social media also creates a constant exposure to various influencers which idealize a lifestyle that can make people feel like they have to keep buying to keep up with the “trends”. The constant comparison ends in consumers most likely making unplanned purchases, making the difference between entertainment and advertisement obscure, leading to continuous spendings. 

Psychology has shown that distraction often reduces self-control leading to an increase of impulsivity. Therefore when someone is preoccupied by multitasking - Scrolling on apps, constantly tapping on videos, they are less likely to think carefully before buying. Businesses and firms online take great advantage of this by using quick pop ups, or even deals that are up for a “limited time” to persuade a group of attention, as the more activity they get from consumers, more likely the sales will increase. This therefore weakens our ability to reflect, yet causes a rational decision due to quick vague reactions. 

Another way of digital distractions that lead to increased spendings is through micro-transactions that games and apps often promote and encourage. Through the process of playing a game consumers often encounter small, repeated purchases such as extra lives, or different types of subscriptions. The transactions may feel minor however they contain a significant amount of money, therefore because consumers are distracted such as too much focus on instant rewards, they might underestimate the significant amount of spendings they are completing, making the long-term financial effects serious. Studies show that people who spend more time online are more likely to report low savings and higher credit card debt. The constant and daily exposure to social media marketing and deals prevents many individuals from making thoughtful financial choices such as budgeting, as they tend to focus more on the satisfaction and rewards of spending. 

In conclusion, digital distraction does not only impact the social and mental state of consumers, but overall the economic one. Yet for the economic one, it has a more positive impact as by capturing the attention of consumers online, encouraging impulsive behavior of constant purchasing, sales are likely to increase - increasing the profit. Technology often makes it easier for companies to profit from our inattentiveness to the real world, which results in a society that spends more, and saves less, causing us to struggle to make mature financial choices. To protect consumers from this, they need to control their focus; which could be done by decreasing screen time, deleting social media apps that require constant scrolling and consists of many advertisements, turn off any notifications about deals, and overall to start shifting focus on real life activities such as reading books, or going on constant walks in the nature to cleanse the mind.