With nearly one-quarter of millennials making out-of-budget purchases to get a response on social media, UBank launches a “one number” answer to personal finances
New research from Australia’s leading digital bank, UBank, reveals the impact social media could be having on wallets, with 66% of millennials admitting what they see on their newsfeeds drives impulse spending.
The research found there’s a new ‘economy’ emerging within social media – driving spending, but also sparking financial conversations across networks. In fact, 47% of digital-native millennials are using social media as a channel to share their financial position or spending habits.
This new social economy is also driving a desire to build an online image others aspire to match. Not only does sharing purchases online make millennials feel ‘really happy’ (47%), it also lets them show off their purchases with 27% hoping to impress followers.
1 in 10 millennials would prefer 1000 likes on a social media post over $200 in a savings/super account.
Millennials are also hyper-aware of how the friends and followers in their networks spend money, with 68% looking to friends, family, influencers and brands for future purchase ideas.
But this awareness and constant connection to friends and influencers can cause jealousy, with a quarter of millennials (25%) admitting they feel envious when they see what others have purchased. And, this envy is triggering action with 23% saying they have purchased over-budget items purely to get a response on social media. In fact, more than a quarter (26%) say they’re compromising their financial future by what they share on social media.
Given this growing pressure to spend freely in real-time while also maintaining savings goals, UBank has created Free2Spend, a revolutionary tool that simplifies all aspects of personal finance into one number. As a future-focused tool, Free2Spend is a tool which helps UBank customers make informed spending decisions quickly and easily, rather than focusing on the past.
UBank CEO Lee Hatton said, “For many people, managing personal finances has become too complicated and it doesn’t need to be. Balancing savings goals and day-to-day expenses with ‘instant gratification’ spending can be challenging. That’s why we’ve launched Free2Spend.
“It allows you to balance your income with your savings goals and fixed expenses. Using this information, the tool then calculates your daily Free2Spend number or ‘one number’ to spend on whatever you want. It’s a solution that can keep up with our customers and their busy lives.
“Since launching, we’ve seen our customers check Free2Spend as regularly as they would check their social networks. In fact, Free2Spend users are 10 times more connected with their finances – it truly is the social media solution to your finances.”
Find out more about how Free2Spend can help you be financially empowered and in control of your spending and saving.
Free2Spend is available to both new and existing UBank customers. You just need to have or sign up for a USaver Savings account plus a USaver Ultra Transaction account, and have an iPhone runnning iOS 10+.
Update or download the UBank banking app and set up Free2Spend right away.
To see the full research results, go to Social media envy driving spending among millennials.
UBank was launched in 2008 and was developed and is supported by the financial strength and global capabilities of National Australia Bank Limited (NAB). UBank is a fintech and provides simpler, better, smarter banking for its customers online and over the phone. Operating under NAB’s banking licence, UBank currently offers a range of products competitive home loans, high-interest online savings accounts, a range of high interest and Term Deposit accounts (which can be used by Self-Managed Super Funds). © National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.