A new survey released today (28 October 2022) by MyState Bank has uncovered the impact of impulse spending, with Australians spending $13.5 billion annually on purchases they regret. Almost all Australians (94%) are splurging on themselves despite the current cost of living pressures, with Gen Z (68%) and Millennials (56%) the most likely to spend on impulse purchases.
Conducted by Lonergan Research on behalf of MyState Bank, the survey of more than 1,100 Australians looked at how these impulse purchases happen, and the financial impact from them each year.
MyState Bank has released the findings to give Australians the opportunity for a clean-slate and start fresh with their finances.
The research also found that whilst nearly half (45%) of those who splurged on themselves felt happy when they did it, the sense of instant gratification wears off quickly, with almost five million Australians buying something in the last week they already regret.
Despite that regret, seven out of eight Australians are aware of when they’re more likely to engage in that spending behaviour. Ironically, a third (33%) of Australians are undoing their good work by treating themselves as a reward for previously foregoing something they didn’t need – quite literally, treating themselves for not treating themselves.
When it comes to the products Australians most regret purchasing, exercise equipment and health accessories topped the list, with one quarter (25%) claiming those categories as their most regrettable purchases, compared to only 6% regretting a tattoo.
And those regret purchases are impacting our mental and financial health, with a third of those surveyed believing that purchase regret is taking a negative toll on their mental health (34%) and they’re worried that they’re too set in their ways to manage their money better. The survey reported half (49%) of Australians agreed that their impulse purchases are costing more than ever due to the current cost of living pressures.
MyState Bank Managing Director and CEO Brett Morgan said he hopes the survey results remind Australians that we’ve all made money mishaps, and it’s never too late to ‘reset’ and start good savings habits.
“In the past week alone, almost five million Australians will have purchased something they already regret. Money mishaps are something we’re all guilty of, and we want to help, rather than feel any shame about it,” said Mr Morgan.
“We’ve all made mistakes, and MyState Bank is committed to helping Australians get back on track with their money, and reminding them it’s never too late to start saving. We hope this clean-slate initiative will inject some positivity into the conversation, turning our money mishaps into an opportunity for a fresh financial start.”
To help kick-start better savings habits, MyState Bank has an early sign up incentive on its flagship, multi award-winning Bonus Saver account, with $50 when you open a new account and deposit $50*. This is available for the first 2,500 Australians who sign up by Tuesday 29 November 2022. MyState Bank is now offering some of the most competitive deposit account rates in Australia.
MyState Bank is also encouraging Australians to make simple, everyday changes to their spending habits, providing helpful tips without the complex finance terminology. Visit the MyState Instagram and Facebook channels for more information.
About MyState’s survey
The research was commissioned by MyState and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 1,169 Australians 18+. Surveys were distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 21 September and 27 September 2022. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.
Gen Z refers to individuals born between 1997 – 2012 (ages 10 – 25 years).
Millennial refers to individuals born between 1981 – 1996 (ages 26 – 41).
About MyState’s Clean Slate
*Visit mystate.com.au for full incentive T&Cs & eligibility criteria. $50 bonus limited to first 2500 customers. Excludes existing Bonus Saver account holders. Applicants must be 18+. Please consider the relevant disclosure documentation and TMD (see mystate.com.au/legal) before acquiring any product. Fees & charges may apply. Product issued by MyState Bank Limited ABN 89 067 729 195 AFSL 240896.