Report: Millennials overspending to keep up with friends

Report: Millennials overspending to keep up with friends
(Source: AP Images)

TOLEDO, OH (WTOL) - You've probably heard of FOMO, or fear of missing out. It's a real thing, particularly for millennials. It's also leading to a spending problem.

"Going to get coffee. Definitely going out to bars and going to concerts, seeing bands. Spending a lot. Spending money on drinks there. So it all just kind of adds up," said Millennial Cara Catalano.

She admits, the fear of missing out, leads to a little splurging.

"I definitely hate sitting at home and seeing my friends are out, and if they are out, I'll probably go join them," she said.

Cara isn't alone. A recent report from Credit Karma shows about 40% of millennials say they overspend to keep up with their friends, and nearly 75% who went into debt, kept it a secret.

"Have you ever heard the term, 'keep up with the Jones'?'" described Daniel Miller, about Millennial FOMO spending.

Miller is an Investment Advisement Representative. He's a Millennial himself and said many of his peers feel the pressure to say yes to things they may not be able to afford.

"If they say no, they're missing out, first and foremost. Then they also don't get the immediate gratification that they get with a couple likes when they're on that trip or they're out with their friends," said Miller.

"I'd rather have a good day today and worry about next month, next year, when it comes." Catalano said.

But Miller said Millennials should instead focus on 'delayed gratification' and work towards first paying down debt.

"Your trip to Cabo this summer with your friends isn't going to one day help you retire, or it's not going to pay off your house any quicker," said Miller.

Miller said surround yourself with friends who want to save, set a budget and if you have to, cut up your credit card.

"It's way more fun to be rich when you're old then to look like you're rich when you're young and be broke when you're old," said Miller.

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