Millennials tipped to be the biggest spenders this Christmas, reports ASIC

New research from ASIC shows that Aussies will struggle with spending this festive season, with one group tipped to spend almost $1000.

Most Australians will blow almost an entire week’s wages during the festive season, new research from ASIC shows.

Australia’s peak consumer protection and market monitoring body, ASIC, has revealed the average consumer will spend $783 this Christmas, just $22 shy of the national median personal weekly income.

Of the 1007 adult Australians ASIC surveyed, more than one in three (35 per cent) said they intended to spend less this year, with 44 per cent saying they had regretted blowing their budgets last Christmas.

ASIC Commissioner Alan Kirkland said the pressure to spend could come from different sources, “including ads or social media posts that are designed to tap into people’s emotions”.

“Sales promotions in-store or online may entice people to spend more than they had planned or can afford – and it can often be hard to resist temptation,” he said.

Millennials were likely to be the biggest spenders of all this Christmas, with an estimated spend on $937, according to ASIC.

The ASIC research broke down Australian spending by age bracket and payment method, highlighting how each generation pays for gifts, holidays and celebrations during the festive period.

Buy Now Pay Later [BNPL] schemes “are particularly favoured by younger consumers, with the highest adoption rates observed among 18-29 year olds,” Mr Kirkland said.

Millenials were also the most likely to use credit cards, followed by Generation Z.

Last week, parliament passed new regulations that will see BNPL products subject to the same regulations as other forms of credit, after consumer advocacy groups warned Australians using the schemes were “falling into debt spirals.”

Mr Kirkland urged younger consumers to exercise caution around BNPL services.

“These services can encourage impulse spending, potentially leading to stress or regret down the track if users cannot manage their repayments effectively.”

ASIC’s data showed all generations will be dipping into their personal savings to pay for this year’s Christmas festivities, and millennials were likely to be the biggest spenders of all, with an estimated spend on $937.

Boomers plan to spend comparatively less, at just $679.

Australian Securities and Investments Commission commissioner Alan Kirkland. Picture: Supplied

Mr Kirkland said it is important for consumers to understand that they deserve to be treated appropriately by businesses during the festive period.

“We obviously expect businesses to do the right thing by their customers and if customers have any concerns about the way in which they’re treated, to be aware of their rights,” he said.

“We encourage all Aussies regardless of their age to manage their money and avoid a post-Christmas spending hangover.”

For more information, see moneysmart.gov.au

Originally published as Millennials tipped to be the biggest spenders this Christmas, reports ASIC