The rapid rise of social media monetization has redefined youth aspirations, offering the allure of quick financial rewards through content creation, influencer marketing, and online visibility. While these opportunities democratize economic participation, they simultaneously pose significant risks to education, particularly among school students. This study investigates the educational consequences of social media monetization in India through a mixed-methods approach involving 360 students across secondary, higher secondary, and undergraduate levels. Findings reveal that 42% of respondents are actively engaged in monetized platforms, with school students disproportionately sacrificing study time, exam preparedness, and classroom participation in pursuit of digital fame. Peer influence emerged as a critical driver, with 68% of respondents motivated by classmates’ online success, often leading to aspirational spending, psychological strain, and in some cases, dropout tendencies. Regression analysis confirmed that higher engagement in monetization significantly correlated with academic decline, especially in Class 9–12 students where monetization explained up to 28% of variance in grades. These findings highlight a growing cultural shift in which academic excellence is overshadowed by digital visibility, threatening the long-term role of education as a pathway to socio-economic mobility. The study concludes by recommending digital literacy integration in school curricula, structured mentorship programs, parental guidance, and policy interventions to balance online opportunities with educational priorities.