With a record $50bn expected to be spent this Christmas, new research suggests more and more Aussies are overspending and impulse purchasing.
According a new study from AMP:
Over two-thirds (69%) of Aussies suffer from ‘post-purchase blues’
More than half of Aussies (56 per cent) have no idea how much they spent on Christmas presents last year
Almost three quarters (71 per cent) of Aussies admit to spending more than they can afford
An overwhelming 88 per cent admit to making impulse purchases, with fashion (51 per cent) and electronics (32 per cent) topping the list of most common impulse purchases.
Michael Christofides, Director of Retail Solutions at AMP Bank, says the findings provide just another good reason why we should all look to be more engaged with our finances.
“Christmas is about gift giving and celebration and it’s very easy to get caught up in the moment,” says Mr Christofides. “We might see an item that would make the perfect gift for a friend or family member that’s a little bit over our budget but make the purchase anyway.
“More than half of us feel excited when we make an impulse purchase. But the initial euphoria seems short-lived.”
WATCH Retirement Commissioner Diane Maxwell talks women and money. Article continues after video…
Who is most likely to overspend?
While an alarming number of Aussies will come to regret their Christmas purchases once they check their bank balance, it’s the younger demographic that is likely to be truly remorseful this Christmas, with 87 per cent of 18-24 year olds experiencing the post-purchase blues.
Women are also more likely to suffer from post purchase blues than men, with 79 per cent experiencing regret following a purchase, compared to 60 per cent of men.
How do I avoid overspending?
The great news is there are lots of technical solutions to help you keep a better hold on your money and budget.
According to the Huffington Post – the top five budgeting apps to download include:
Wally
Level Money
Good Budget
Unsplurge
Mint
If you’re not into apps, AMP has recently launched a Bett3r smart bank account that automatically moves your money between pay, save and spend accounts.
The Australian Securities and Investment Comission also has a fantastic website called Money Smart which has lots of calculators, money saving tips and information.
This article first appeared on Balance by Deborah Hutton.
