40% of Millennials overspend to keep up with their friends. According to a recent study by Credit Karma that surveyed 1,045 US Millennial consumers. 73% of those in debt kept it a secret from their friends while 27% don’t feel comfortable saying no to a friend when suggesting an activity they can’t afford. It’s called FOMO spending: “When you give into peer pressure to buy something you can’t afford because you’re afraid of missing out on quality time with your friends or a once-in-a-lifetime experience.”
Things like wedding parties, music festivals, travel and nightlife activities are all common triggers for FOMO spending. But it’s not just experiences – other items like clothing, electronics, cars or jewelry can also fall into the same category. Reasons for Millennial FOMO spending? 36% don’t want to be left out of future activities, 27% don’t want to feel like an outsider, 26% don’t want to lose friends, and 23% don’t want to be judged. Luckily 78% of Millennials who responded say that they do have a budget. So now all you have to do is stick to it.