Social Media: The Good, The Bad and The Ugly - How to prevent an accident on the Social Media superhighway
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Social Media: The Good, The Bad and The Ugly How to prevent an accident on the Social Media superhighway Jenna Guenther, Director, Wealth Impact Planning Amy Zehnder, Managing Director, Senior Strategic Wealth coach
Social Media: The Good,
The Bad and The Ugly
How to prevent an accident on the Social Media
superhighway
Jenna Guenther, Director, Wealth Impact Planning Social media
Amy Zehnder, Managing Director, Senior Strategic Wealth coach
is a relatively
new, powerful
Twenty years ago, if you made an ugly scene in the street, the only evidence of your stunt
would have been the memories stored in the minds of those who saw you first-hand. and incredibly
Today, in less than five minutes, your inappropriate behavior will most likely be posted on complex form of
Facebook, uploaded to YouTube, and texted to more people than you could ever imagine!
When you get home, your family may already have seen it and, even worse, your neighbors, real-time online
employees, advisors and friends might look at you differently. Couple the shame and communication.
humiliation with your family’s reputation, and your little jaunt ends up being a lot more than
just a momentary lack of judgment.
“Social media are not private like a diary....Pictures and posts live on the internet to
haunt or humiliate...forever.”1
Social media is a relatively new, powerful and incredibly complex form of real-time online
communication. Once a “fad” for tweens, teenagers and young adults, social media has
morphed into a long list of websites and other applications that are frequented and used by
people of all ages. “The biggest growth [in social media use] of any age cohort from 2011 to
2012 was 45-54 year-olds, in fact 55% of Americans 45-54 now have a profile on a social
networking site. The only group that is below average, in terms of expected participation,
on social networks, are 55+ Americans, and even 3 out of 10 of them are in the social
networking game.”2
1
Dawn Bormann, “Social media: Parents unconcerned by Facebook, Twitter”, The Kansas City Star, 08/21/2012.
2
rik Qualman, “10 New 2012 Social Media Stats = WOW!” http://www.socialnomics.net/2012/06/06/10-new-
E
2012-social-media-stats-wow/, retrieved 08/23/2012.
1Insights
Social Media: The Good, The Bad and The Ugly
social media is complex3
Before outlining the most popular types of social media, let’s set the stage to discuss its
good, bad and downright ugly aspects by taking a quick look at the automobile industry.
Henry Ford’s invention of the automobile made, and will continue to make, an
unprecedented impact on individuals, families and communities worldwide. Even if you
don’t own or drive a car, you have no choice but to become familiar with general traffic
rules: green means go (“good”), yellow means caution (“bad”) and red means stop (“ugly”):
The Good (Green Light) Automobiles provide us with a form of transportation for
ourselves and consumer goods that is much faster than
walking or running
The Bad (Yellow Light) Automobiles burn precious fuels that result in pollution,
which some people believe has a lasting effect on our
environment
The Ugly (Red Light) Every day, people are killed in automobile accidents
3
Luma Partners, “Social LUMAscape”, http://www.lumapartners.com/lumascapes/social-lumascape/,
retrieved 09/14/2012.
2Viewed from a different perspective, when the light is green it’s time to drive through or
walk across the intersection. Like it or not, you had better move otherwise you may get hit;
Inappropriate use
staying still is not an option. When the light is yellow, you should be extra cautious about
what is going on around you and clear the intersection by either continuing as already of social media...
planned or coming to a stop to avoid an accident. Finally, when the light is red, you had can wreak havoc
better stop otherwise you could find yourself in an ugly situation.
on a family’s
Like the automobile industry, social media is here to stay (at least until the next big global
innovative movement). Therefore, it’s beneficial to know when to go through the green light, reputation and
how to use caution at a yellow light, and when to stop at a red light. Used correctly, social can result in
media may reap many good benefits for families of wealth and their businesses as it can
other costly
allow them, among other things, to expand their brand, source new business, and bring
family members together. However, if families don’t pay attention to the ever-changing social damages.
media world and fail to exercise caution when the light turns yellow, they can easily fall into
bad traps. Lastly, inappropriate use of social media, just like disregard for red lights, can
wreak havoc on a family’s reputation and can result in other costly damages.
“We don’t have a choice on whether we DO social media, the question is how well we DO it.”4
Most Popular Types of Social Media
Since the complexity of social media can be overwhelming and daunting for some people
(see illustration on page 2), let’s simplify it by first categorizing the different types of social
media tools based on their purpose and intended use:
Category Purpose Use most popular Example(s)
Social Personal Connect with others
Networks connections of similar interests
and backgrounds
Professional Professional Connect with other
Networks connections professionals, recruit
employees, etc.
Media Photo and Upload, share and
Or
Sharing video sharing comment on various
forms of media Flickr
by Yahoo
Blogs, Vlogs Online journals Information sharing and
and Forums and message discussions, usually
boards centered around a topic
Micro- Information Short updates (industry
Blogging sharing and educational news and
trends, tools and tips, etc.)
4
Erik Qualman, “39 Social Media Statistics to Start 2012”, http://www.socialnomics.net/2012/01/04/39-social-
media-statistics-to-start-2012/, retrieved 08/23/2012.
3Insights
Social Media: The Good, The Bad and The Ugly
Social Media: The Good, The Bad and The Ugly
For families of Next, let’s dive a little deeper into what we call the social media “traffic light”.
wealth, social
The Good (Green Light)
media is a
In today’s fast-paced world, entertainment, communication and social interaction are all
powerful way for greatly impacted by social media. For families of wealth, social media is a powerful way for
family members family members around the world to remain connected in real time as it allows them to:
around the • Maintain and build relationships with close and distant relatives
world to remain • Foster communication among different generations
connected in real • Feel a sense of community and belonging
time. • Share in planning for family meetings, events and philanthropic activities
• Advertise and market their businesses
• Access an abundance of market research data
• Pre-screen employment applicants
In addition, since sharing is done in real time, information posted to social media sites
is frequently contemporaneous with the event which not only allows others to feel as if
they are a part of the experience, it also enables them to reply instantly. For example, by
sharing information and photos online, family members around the world can feel as if they
are intimately involved in each other’s lives. This is true even in unfortunate situations like
hurricanes and tornadoes: being able to let family members know that you’re okay via email
or online posts provides peace of mind for those that are not with you. Families can also use
video conferencing to meet regarding decisions that need to be made as a family such as
what to do with pooled family investments, how to share or split time at the family vacation
home and simple things such as deciding on the paint color for the kitchen.
Online fundraising is another great example of how social media can have a positive impact.
Gone are the days when you walked around the neighborhood knocking on people’s doors
or sending out letters asking for donations. Now you can send out emails or post links in
Facebook that allow donors to go online and make donations when it’s convenient for them.
“2009 US Department of Education study revealed that on average, online students
out performed those receiving face-to-face instruction.”4
4The Bad (Yellow Light)
If used inappropriately, social media can, and often does, lead to embarrassing and unsafe If used
situations. As a result, families should consider and frequently discuss the following: inappropriately,
• Inappropriate postings could provide permanent documentation of embarrassing, illicit social media
or illegal activity
can, and often
• Postings can inadvertently divulge family, business or trade secrets
does, lead to
• Personal, intimate or other secure content may be posted erroneously, without your
knowledge and sometimes even fraudulently to public sites or pages embarrassing and
• Incorrect use of social media can result in identity theft and even jeopardize current and unsafe situations.
future employment
• Physical security of homes and family members could be compromised through posting
of pictures or personal/location data; for example, tweets that you are on vacation may
be an open invitation to thieves
• In most cases, deleting posts is ineffective as digital records are saved on servers
throughout the world meaning that even though a post is no longer viewable to the
public, it still ultimately exists
“What happens in Vegas stays on YouTube, Flickr, Twitter, Facebook…”4
Therefore, family members should use discretion when posting personal details and pictures
as well as their current location. Be especially cautious about “checking-in”: “To ‘Check-In’
means to use the GPS capabilities on your smartphone or other GPS capable mobile web
devise to announce you are at a particular location or business via a social network such as
Facebook. In other words, it is a way to tell your friends and others who are on the same
social network ‘Hey, I’m here right now!’”5
Take a family vacation, for example. You and your family are on a ten day vacation in Hawaii
and your teenager “checks-in” to Facebook and starts posting photos, alerting tons of
Facebook users that your whole family is at a resort in Maui and out of the house for several
days. This is the social media equivalent to your child handing over the house keys to a
burglar! Does this mean you should never “check-in”? Not necessarily; but you’ll need to be
more selective about where you check-in and what you post while you’re away. Prior to
posting, consider how long you’ll be gone and if you are providing potentially incriminating
information. For example, checking in at a substance abuse treatment center may not be
good for your family’s pharmaceutical business and posting that your mother just inherited
her grandmother’s invaluable jewelry may not be smart for the security of your home.
5
Apps, Duluth Social Media Marketing Blog, “Checking-In: What does it mean in social media?” http://
cloudberrysocial.com/what-does-it-mean-to-check-in-on-a-social-media-site/, retrieved 08/31/2012.
5Insights
Social Media: The Good, The Bad and The Ugly
In addition, be careful about storing personal and, especially, credit card information with
your favorite online stores. Using the same username and passwords for several different
Ultimately, a social
accounts should also be avoided. Something as recent as the hacking of LinkedIn is an
media faux pas can example of how quickly a thief can use information hacked from one online account to
result in irreparable gain access to another: the thief hacks your LinkedIn account, takes that username and
password and logs in to your Amazon account where he gains full access to your stored
damage to a credit card number, expiration date and security code, not to mention your full name, home
family’s reputation, address and phone number.
security, business It is also important to frequently update your privacy settings and monitor your online
accounts for unauthorized access and use. Some sites like Google even allow you to sign
and finances.
up for alerts that notify you if something is posted about you or your business.
The Ugly (Red Light)
At its worst, social media can open doors that lead to very ugly places:
• “1 in 5 divorces are blamed on Facebook”4
• The family’s reputation may be tarnished through leaked secrets, personal or trade/
business data
• Pictures and other posts may be used in a court of law in cases of divorce/custody, civil
or criminal proceedings
• Hacked accounts can be held for ransom or mined for personal data and your identity
could be stolen
• Children are especially susceptible to cyber bullying and stalking, online harassment and
sexting
Ultimately, a social media faux pas can result in irreparable damage to a family’s reputation,
security, business and finances. The recent media focus on sexting and cyber stalking are
examples. Inappropriate pictures sent via text message or uploaded to a social media site can
quickly turn into a never-ending nightmare for families of wealth. Caught in the act of sexting,
one can face criminal or even felony sex charges (including distribution of child pornography)
that can take a long time and a lot of money to fight. Found guilty, you or a family member
could end up behind bars. Even after serving your sentence, the embarrassment, shame and
lifetime reputation damage can tear families (and their wealth) apart…not to mention the fact
that one would be required to register as a sex offender for life.
6Ways to Protect Your Family from Falling Victim to the Families should
Ugly Side of Social Media create agreed-
• Perform a Google search on your name (including your kids’ and business’ names) upon Guiding
• Set a Google alert that notifies you when your name is used online
Principles for
• Change passwords frequently
the use of social
• Create secure passwords using a combination of numbers, letters and symbols
• Use different user names/passwords for different accounts
media.
• Monitor your kid’s social media accounts
• Talk with your kids about the dangers of social media
• Don’t post anything on any site that you wouldn’t want “everyone” to see
(including grandma and your employer/employees)
• Check your credit reports for fraud at least annually
• Have someone in your family be the social media expert in charge of keeping
other family members abreast of social media trends and protective measures
Savvy Use of Social Media
Good, bad or ugly, social media is not going to go away. And, unlike motor vehicle and
personal liability insurance, there is no insurance against the reputational damages that
can be caused by social media. Instead of sitting back and pretending that social media
does not exist, families of wealth should be diligent about understanding the different types
of social media and frequently discussing how to correctly use these powerful tools, at a
minimum! Ideally, families should create agreed-upon Guiding Principles for the use of social
media that every family member above a certain age should be required to read and sign as
evidence of their moral commitment to the agreement. By doing so, the family may improve
its odds of making it through social media “traffic lights” without a major accident.
For more information about how Ascent Wealth Impact Planning can help your family
navigate through the important steps to becoming savvy social media users, please contact
your Ascent representative.
7Insights
Social Media: The Good, The Bad and The Ugly
8Jenna Guenther achieved a master of taxation and practiced as a Certified Public Accountant prior to joining
Ascent Private Capital Management of U.S. Bank as a Director of Wealth Impact Planning.
Amy Zehnder is a certified executive coach with a degree in Industrial and Organizational Psychology. As a
Managing Director of Strategic Wealth Coaching at Ascent Private Capital Management of U.S Bank, Amy often
facilitates workshops on the savvy use of social media.
Important DISCLOSURES
By participating in Wealth Impact Planning services, as provided by Ascent Private Capital Management (Ascent),
you acknowledge the following:
• Wealth Impact Planning services are not fiduciary in nature, and Ascent serves in a non-fiduciary role when
providing these services.
• Wealth Impact Planning services may include Strategic Wealth coaching services in order to facilitate your self-
assessment of Wealth Impact Planning issues. These services are not psychological or counseling services. Ascent
does not engage in the practice of psychology.
• Wealth Impact Planning services are not legal or tax advice. These services are provided for educational and
illustrative purposes only, and do not guarantee the success of any strategy or recommendation. Ascent shall
have no liability for losses that result from decisions you make in connection with the services provided. You should
consult your tax and/or legal adviser for advice and information concerning your particular situation.
• U.S. Bank is not affiliated with any organization identified in this document and does not guarantee the products,
services, or performance of its affiliates or third party providers.
9ascent.usbank.com © U.S. Bancorp 3027-WIP (7/13)
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