Official figures show that the household saving ratio, or the percentage of income that we can afford to save fell to its lowest level on record last year. Savings levels in the US have fallen similarly too.
Experts claim that much of this is due to displays of lavish spending for the purposes of faking it on social media such as Instagram.
Researchers at the US National Bureau Of Economic Research have struggled to explain the drop in savings but have said that the answer could lie in the increased observance of consumption. The most visible people in social media are the ones shown consuming the most. Social media sites designed for sharing pictures such as Instagram are particularly influential in changing people's spending habits because of their heavy emphasis on travel, fashion and celebrity.
This is consistent with previous research which has demonstrated the link between heavy social media use and anxiety and depression in young people.
Watch The American Meme on Netflix for an insight.