Millennials love to spend but don’t like paying people back, new research suggests

Ceyda Erem

12 Dec 2018

Millennials spending content

For many Aussies, there’s a toss up between how much or how little to spend on Christmas presents for friends and family.

But according to the 2018 Commonwealth Bank Christmas Consumer Spending Study, millennials are more than happy to splurge during the silly season.

The report found that 85% of millennials are spending up to $1,000 on gifts while 15% are spending over $1,000.

But as younger Aussies get caught up in spending big, it’s their budgets that are being left behind, with 39% only starting to save up a month in advance.

RELATED: Mozo’s quick guide to racking up rewards points over Christmas

As a nation, Christmas shopping is expected to set us back $10.7 billion and only 1 in 4 of us are keeping track of what we’re spending.

“With fantastic in-store and online shopping experiences on offer, it’s easy to get caught up in the festive frenzy and lose track of what you’re spending,” said Michael Baumman, Executive General Manager for Everyday Banking.

“The best chance of making sure you stick to your budget is to set a plan and monitor your spending.”

Keeping spending in sight

To help Aussie millennials get a better hold on their cash all year round, finance app Finch has today launched Finchsights, a free personal finance tool that tracks and provides insights on social spending, such as coffees and UberEats.

The app will give users a dashboard glance at their:

- Favourite merchants and how much they’ve spent there in the last 30 days

- Guilty pleasures and frivolous spending, which users can then decide to curb by limiting their spending at certain merchants

"This stage in life is all about friends, fun and adventure, but things can add up quickly especially, over Christmas. We’ve introduced Finchsights this Summer to help millennials track their ‘fun money’, from Christmas shopping to New Year’s celebrations, and all the festivals, restaurants and road trips that follow,” said cofounder of Finch, Shahirah Gardner.

“Finchsights is all about building your financial awareness around things that matter to you right now, in a way that’s fun, relatable and easy to understand.”

RELATED: 5 festive credit card deals to snap up this Christmas

Gift giving vs giving back

It’s clear millennials love to give their friends a reason to smile during festive season, but ironically, they’re not too keen on paying them back when it comes to group outings.

Research by instant payment app, Beem It has revealed that 48% of friendship groups have ‘that one friend’ who doesn’t pay their fair share with 61% having to be chased up for cash by the Chief Fun Officer (CFO).

According to Beem It, the CFO is the person responsible for planning and paying for trips, including booking transport, accomodation and tickets as well as putting expenses on their card and paying upfront.

And despite putting their hand up to take on the responsibility, 41% of CFO’s are being taken advantage of and are footing up to 10% more of the costs than their friends.

RELATED: The best travel money cards for your summer holiday revealed

Need a new credit card to that’ll keep up with your festive spending? From low rate to platinum cards, our credit card comparison tool can help you find your next plastic match.

6 credit card offers for Christmas

Rates updated daily. Advertiser disclosure.

  • Apply By 31 October 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)

    0% p.a. for 12 months then 11.99% p.a.

    $45

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. Low annual fee of $45 and no fees for additional cardholders.

    • 0% p.a. for 12 months then 11.99% p.a.

    • 0% p.a. for 12 months

    • 0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • Great Southern Bank Low Rate Credit Card

    0% p.a. for 25 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    • 11.99% p.a.

    • -

    • 0% p.a. for 25 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $49 $0 in the first year

    • $12.50

    • 2.00%, Min $3.50

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • Apply By 04 October 2021

    Kogan Money Black Card

    0% p.a. for 12 months and then 21.74% p.a.

    20.99% p.a.

    $0

    Kogan Money Black Card has no annual fee and no cap or expiry date on points. It comes with a 55 interest free days on purchases and a 0% balance transfer rate for the first 12 months. Earn up to $400 in Kogan.com Credit, $50 Credit on first eligible spend in 30 days and $350 Credit when you spend $1,500 on eligible purchases in 90 days from card approval.

    • 20.99% p.a.

    • -

    • 0% p.a. for 12 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 3.40%

    • $0

    • $30.00

    • 3.50%, min $5.00

    Read our Mozo Review to learn more about the Black Card

    Details Close

  • Great Southern Bank Platinum Credit Card

    0% p.a. for 25 months and then 21.74% p.a.

    19.99% p.a.

    $149 $0 in the first year

    0% p.a. balance transfer, $0 annual fee for the first year and also receive 1 rewards point for every dollar spent. Purchase protection insurance. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^.

    • 19.99% p.a.

    • -

    • 0% p.a. for 25 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $149 $0 in the first year

    • $12.50

    • 2.00%, Min $3.50

    Read our Mozo Review to learn more about the Platinum Credit Card

    Details Close

  • Apply By 30 November 2021

    St.George Vertigo - Cashback Offer

    2.99% p.a. for 15 months and then 21.49% p.a.

    13.99% p.a.

    $55 $0 in the first year

    $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    • 13.99% p.a.

    • -

    • 2.99% p.a. for 15 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $55 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Vertigo - Cashback Offer

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards