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

Ceyda Erem

12 Dec 2018

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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 May 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 18 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 18 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 Zero Mastercard

    2.99% p.a. for 9 months and then 17.99% p.a.

    17.99% p.a.

    $0

    No annual fee and up to 55 days interest free on purchases. Get a notification before your minimum payment is due by setting up Easy Alerts in the Bankwest app.

    • 17.99% p.a.

    • -

    • 2.99% p.a. for 9 months and then 17.99% p.a.

    • 21.99% p.a.

    • 55

    • 2.95%

    • $0

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Zero Mastercard

    Details Close

  • Hot Deal Limited time cashback offer

    Westpac Low Rate

    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    • 13.74% p.a.

    • -

    • 0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 3.00%

    • $59

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • ME frank Credit Card

    No current offer

    11.99% p.a.

    $0

    Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.

    • 11.99% p.a.

    • -

    • No current offer

    • 11.99% p.a.

    • 55

    • 2.30%

    • $0

    • $10.00

    • 2%, Min $4.00

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

    Details Close

  • Apply By 28 February 2021

    NAB Qantas Rewards Signature Card

    0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)

    19.99% p.a.

    $395 $295 in the first year

    NABs fastest way to earn Qantas Points. 130,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.

    • 19.99% p.a.

    • -

    • 0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 44

    • 295.0

    • 3.00%

    • $395 $295 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Qantas Rewards Signature Card

    Details Close

  • Bankwest Breeze Mastercard

    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    10.99% p.a.

    $49 $0 in the first year

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    • 10.99% p.a.

    • -

    • 0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    • 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

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