Why Giving Tuesday is better for your wallet than Black Friday

Australians have long enjoyed North American pop culture, from TV shows, to movies and music. Now we’re also indulging in the (in)famous Black Friday sales.

We aren’t the only country either, because Black Friday - a sales event that happens the Friday after Thanksgiving - has also made its way to Asia and Europe. In fact, the event has grown further with the following Monday now being called Cyber Monday for online sales.

Black Friday stats

How big is Black Friday then? In 2019, online sales in the US reached a whopping $7.4 billion (USD). In the UK, where the event has been gaining popularity for about a decade now, sales went as high as £1.49 billion in 2018, according to statistics from Nosto.

Australia has joined the fray. Back in 2017 McCrindle’s research showed that one in four Aussies had never heard of the shopping event. Fast forward to 2019 and 94% had heard of it and a further 77% were planning to take advantage of it.

The cost to your wallet and the planet

If you intend to use Black Friday to save money on an item that you really need, that’s great. Discounts can be a good way to grab a bargain on necessary items and keep your savings account looking healthy. However, with the event becoming so big in recent years and real-life and digital advertising all around us, it’s hard not to get carried away.

It’s like the classic buy two-for-$10 conundrum. You only went to the shop for one of these items, but now you have the opportunity to get two at a discounted price. The question is do you need two? You could just wind up spending more money than you set out to.

Indeed, a recent survey from OppLoans in the US found that 39% of Black Friday shoppers regretted purchases afterwards, with a further 41% reporting suffering financial consequences.

So, as you can see, if you wind up buying more because there are discounts, Black Friday might not be so good for your wallet. Another thing that Black Friday isn’t so good for is the environment. A report from the website Money estimates that this year Black Friday in the UK alone will release around 429,000 tonnes of carbon emissions into the atmosphere.

What is Giving Tuesday?

Created in 2012, Giving Tuesday falls the Tuesday after Black Friday and encourages people to do good.

Now you might be thinking ‘how can I save money by donating rather than shopping?’ Well, if you spend a minimal amount of money on Black Friday you might not. However, according to a Washington Post article, the average millennial spent $419.52 USD on Black Friday in 2017 (approximately $569.54 AUD). Compare this to the average monthly donation in Australia, which in 2019 was $80, according to Good2Give.

Of course, we’re not saying that you’re going to blow over $500 on goods in the sales, but let’s just say you spend $150 on something you later regret. Instead of this you could donate $50 and put the other $100 in your savings account. A win-win for everyone.

Your savings need the right account, of course, so think about if you have one that meets all of your budgeting needs? Head to Mozo’s compare savings accounts page to see what extra features you could be taking advantage of.