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 30 June 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    • 11.99% p.a.

    • -

    • 0% p.a. for 24 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

  • Bankwest Breeze Mastercard

    0% p.a. for 15 months and then 9.90% p.a.

    0% p.a. for 15 months then 9.90% p.a.

    $49 $0 in the first year

    Enjoy 0% p.a on balance transfers for 15 months then 9.90% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Breeze Mastercard customers only.

    • 0% p.a. for 15 months then 9.90% p.a.

    • 0% p.a. for 15 months

    • 0% p.a. for 15 months and then 9.90% p.a.

    • 21.99% p.a.

    • 55

    • 0.0

    • 2.95%

    • $49 $0 in the first year

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Breeze Mastercard

    Details Close

  • Apply By 07 September 2021

    Westpac Low Rate

    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59 $0 in the first year

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    • 13.74% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • Apply By 31 May 2021

    Citi Simplicity

    0% p.a. for 6 months and then 22.24% p.a.

    0% p.a. for 6 months then 21.49% p.a.

    $0

    There is no annual fee ever, you'll get up to 55 days interest free, free wine when you dine with the Citi Dining Program and the convenience of worldwide acceptance with Visa and Visa payWave. Plus for the first 6 months you'll enjoy 0% on balance transfers.

    • 0% p.a. for 6 months then 21.49% p.a.

    • 0% p.a. for 6 months

    • 0% p.a. for 6 months and then 22.24% p.a.

    • 22.24% p.a.

    • 55

    • 3.40%

    • $0

    • $0.00

    • 3.5%, min $3.50

    Read our Mozo Review to learn more about the Simplicity

    Details Close

  • Defence Bank Foundation Credit Card

    3.99% p.a. for 6 months and then 8.99% p.a.

    3.99% p.a. for 6 months then 8.99% p.a.

    $45

    Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.

    • 3.99% p.a. for 6 months then 8.99% p.a.

    • 3.99% p.a. for 6 months

    • 3.99% p.a. for 6 months and then 8.99% p.a.

    • 8.99% p.a.

    • 55

    • 3.00%

    • $45

    • $20.00

    • 4.1

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

    Details Close

  • HSBC Platinum Credit Card

    0% p.a. for 36 months and then 21.99% p.a.

    19.99% p.a.

    $129 $29 in the first year

    0%p.a. on balance transfers for 36 months with no balance transfer fee. Terms and Conditions apply. Mozo Experts Choice Premium Rewards and Balance Transfer Platinum Credit Card Winner 2020.

    • 19.99% p.a.

    • -

    • 0% p.a. for 36 months and then 21.99% p.a.

    • 21.99% p.a.

    • 55

    • 29.0

    • 3.00%

    • $129 $29 in the first year

    • $30.00

    • 3%, min $4.00

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

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards