‘When I get paid, I’ve spent $2000 in an hour’
SOCIAL media is making young Australians overspend as keeping up with the Jones's has become even more immediate.
New data from UBank, which surveyed 1000 young Australians between 18 and 34, found
two thirds of Millennials admitted what they see on their newsfeeds drives impulse spending.
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.
'AS SOON AS I GET PAID ... I SPEND IT'
Public relations worker Zoe Walsh, 26, from South Yarra in Melbourne checks her Instagram 10-15 times a day, and describes herself as a "shopping addict".
Instead of going into shops, she told News Corp she screenshots her most wanted items from Instagram and spends an average of $1500-$2000 a month on them.
"I'm a clothes and makeup shopper. As soon as I get paid, within an hour I've been known to screenshot and I've almost spent $2000.
"I end up having no money by the end of month and get 15 parcels per month delivered to my office. I am the laughing stock of the office. It's embarrassing, there's no excuse and I'm looking to fix this, it really is a shocker."
While Zoe does pay her basic bills, she admits she has no savings.
"The way I live in my first two weeks of the month are very different to the last two weeks," she said.
"I have to resell stuff online to make my money back.
"I am a stereotypical Millenial - I think do I need it, but I do care about the bigger picture. I do care about other things as well, but I do understand that instant gratiifcaiton and how amazing it is when a new purchase arrives and you can wear it out."
'NEVER PHOTOGRAPHED IN THE SAME OUTFIT TWICE'
Retail worker Michelle Ho, 26 from Mosman in Sydney, gets her Insta-shopping fix from high-end bloggers who tag their outfits.
She told News Corp she is on Instagram for two to three hours a night and an hour in the morning instead of looking at magazines or websites because the models used in them are "not realistic" to her.
She spends between $1000-1500 a month on something she would have seen on Instagram, and does not like to be photographed wearing the same item twice on social media.
"This can happen if I have a wedding and I buy a dress that's $200-300. I wouldn't wear it again. If we had a work event or a party, I'd be buying a different outfit," she said.
But rather than overspend by buying the full-priced item all the time, she said she will buy it somewhere when it goes on sale.
"I've sourced Louis Vitton and Yves Saint Laurent bags for cheaper before," she said.
"If I really like it, I favourite it and wait until it gets discounted."
Michelle said she is also a member of an exclusive members-only Facebook Group where she can re-sell her luxury items like handbags to get her money back.
"I also manage my budget with a 55-day interest free credit card that helps me to pay it off. I also do still put a portion of my pay into my savings immediately," she said.
"My friends and I are all the same, we do spend a lot but it doesn't get to a point where we are starving.
"I just got married, so my husband and I do have our life goals too, but I was raised with the idea that if I want something, I work for it and if I can't afford it I shouldn't be buying it."
'THEY'RE SMARTER THAN THEIR PARENTS'
Australia's leading social analyst David Chalke told News Corp that overspending has become young peoples' 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 18-34 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 are conscious of what they're spending, even if they are 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."