Social media makes a generation spend faster

SOCIAL media is like the chocolate counter at the supermarket for many young Australians, as it entices them to make impulse purchases, research has revealed.

The Social Spending Report, commissioned by UniBank and carried out by Di Marzio Research, said 88 per cent of 1202 respondents claimed social media influenced them to spend on unecessary items.

UniBank CEO Mike Lanzig said the ease of online removed spending hurdles.

“Using an app to go straight to a spend, the convenience aspect was quite prevalent,” he said. “Gone are the days where you had to go to a shop.”

A worrying 32 per cent made a purchase they regretted; 28 per cent had purchased without asking whether they could afford it and 18 per cent had bought something they completely forgot about.

“In two-thirds of the cases, the commentary came back that they had buyer’s remorse,” Mr Lanzig said.

“A further third of those did say they could have put that money towards a better use.”

Despite these numbers, most respondents considered themselves quite (31 per cent) or relatively (48 per cent) financially savvy and believed they were capably managing their finances.

“Around 80 per cent were using their own (money), while one in five used buy now-pay later schemes and just 15 per cent used a credit card,” Mr Lanzig said. “So that’s actually a good sign.”

Many respondents were also seeking financial advice from friends or family and even social media, such as student Ebony Bance, 21, pictured.

“Social media gives you access to many …people who can help you in different ways,” Ms Bance said. “It’s less stressful asking over social than in a formal situation.”

Ms Bance’s current financial management revolves around weekly expenses and money left over to socialise, but she plans to buy a house.

“I do talk to my parents in particular about how best to save and spend,” she said.

Certified Financial planner Tracey Sofra, principal planner at Sofcorp Wealth, said taking advice from family or friends is nothing new, but it’s important to make sure your sources of information are trustworthy, especially online.

“Find qualified people who know what they’re talking about and have been around for a while,” she said.

“Make sure you’re talking to someone who has a mentoring perspective, not trying to sell you something.”