If you have a bad habit of buying on impulse or overspending, you’re not alone. A new survey from Clever Real Estate shows that nearly three-quarters (74%) of respondents say they overspend, and over half (55%) said they spend recklessly. Big spenders admit to buying things they immediately regret, and many blame their spending habits on the high cost of living.
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Fortunately, there are ways to curb bad spending habits. The key is to understand how you spend money and find ways to save it. Are you one of the more than half of Americans who say they are reckless spenders? Find out what makes someone a bad spender and the common mistakes many people make when it comes to spending money.
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What are Americans’ spending habits?
According to the Clever Real Estate survey, more than half of respondents admitted to spending recklessly. These spending habits occurred despite “recession predictions from economists,” the report said.
However, many people blamed their recklessness on external factors rather than poor spending habits. More than half (56%) of respondents said their spending would not be a problem “if the economy was better,” and 61% said their spending habits would not be a problem if “prices were not so high.”
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What influence does age have on spending?
The way people spend money varied greatly between generations, with baby boomers less likely to report having a problem with overspending than millennials and Gen Z. As the survey shows, only 56% of baby boomers said they had a problem with overspending, compared to 86% of millennials and 87% of Gen Z.
What do people think about their spending habits?
Most respondents not only said they had bad spending habits, but also felt regret or shame about their purchases. A surprising 45% said they had “cried over their spending habits.” Even more disturbing, 13% of respondents said they cry over their spending habits at least once a week, and 16% said their bad habits had “ruined their lives.”
What expenses do people often regret?
Regret was a real problem for many of those surveyed, with around 78% of respondents saying they “make purchases that they immediately regret.” Other common regrets include spending money they should be saving, buying too much on a credit card, and spending more than they earn.
What do people spend too much on?
Respondents reported overspending in several areas. Most commonly, respondents admitted to overspending when eating out. Another area where respondents felt they overspent was online shopping: 42% reported overspending in this category. About 39% reported overspending on clothing, and 27% reported overspending on beauty products.
What are problematic spending habits?
The good news for many spenders is that there are ways to break bad habits. Recognizing problem spending is key to curbing this behavior. Spenders often buy things they don’t need or admit to making impulse purchases. Nearly 80% of respondents said they spend money on things they don’t use.
Those who overspend, particularly millennials and Gen Z, said they subscribed to a service they rarely use or bought an item just because it was on sale. Nearly one in five Gen Z members admitted to buying an item every week that they don’t use.
Careless spenders also reported not keeping track of their expenses, spending more than they earn, and not comparing prices when shopping. However, with a little awareness, each of these common financial mistakes can be corrected or avoided altogether.
What steps do people take to correct bad spending habits?
Despite troubling spending habits, many people believe they can make the necessary changes to improve their financial situation. About a third of respondents said they use cash or debit cards instead of credit cards, and 44% said they keep an eye on their spending. Other strategies implemented by people working to improve their spending habits include making a shopping list, going out less, creating a budget, and paying off their credit card bills in full each month.
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This article originally appeared on GOBankingRates.com: More than half of Americans are reckless spenders – are you?
