Not so savvy spend­ing now

Mil­len­ni­als buy to get a re­sponse on­line

Chinchilla News - - NEWS - Shoba Rao

TWO-THIRDS of Mil­len­ni­als ad­mit­ted what they see on their news feeds drives im­pulse spend­ing, ac­cord­ing to new data from UBank, which sur­veyed 1000 young Aus­tralians be­tween 18 and 34.

An­other 27 per cent of Mil­len­ni­als share pur­chases on­line with the hope of im­press­ing their fol­low­ers and 23 per cent say they have pur­chased over-bud­get items to get a re­sponse on so­cial me­dia af­ter be­com­ing en­vi­ous of what oth­ers have posted.

More than a quar­ter of those sur­veyed say they’re com­pro­mis­ing their fi­nan­cial fu­ture by what they share on so­cial me­dia. The sur­vey also found 10 per cent of young peo­ple would pre­fer 1000 likes on a so­cial me­dia post over $200 in a sav­ings or su­per­an­nu­a­tion ac­count.

Aus­tralia’s lead­ing so­cial an­a­lyst, David Chalke, told News Corp that over­spend­ing had be­come young peo­ple’s re­li­gion.

“This is the new world. It’s not Instagram’s fault, it’s how we have evolved as a hu­man species – it’s eas­ier be­cause it’s there and so­cial me­dia has en­abled the be­hav­iour that’s there,” he said. “They use it to estab­lish their per­son­al­ity and by show­ing them­selves in their lat­est tribal wear.

“Go back to 18 to 34-year-olds 20 years ago, they were the same but they got out to work ear­lier, didn’t go to uni and get to the work­force at 26.

“They were just as will­ing to spend on things as self-in­dul­gent and unim­por­tant. But Mil­len­ni­als are smarter than their par­ents, be­cause they’re ex­posed to so much more, even if they over­spend.”

UBank CEO Lee Hat­ton told News Corp that young peo­ple were con­scious of what they were spend­ing, even if they were blow­ing their bud­gets.

“They’re smart, they are fi­nan­cially savvy, they know how to shop for in­ter­est rates on their sav­ings, they will use us for sav­ings goals, be­cause we have good in­ter­est rates, they set goals for them­selves so they can buy what they want.

“But we all need to be clear on our bud­get.

“If we find our­selves get­ting out of the pa­ram­e­ters, then seek ad­vice and help, money can be stress­ful when we get out of con­trol.”

PHOTO: STOCK

IM­PULSE: So­cial me­dia is mak­ing young Aussies over­spend.

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