15m adults ‘consciously overspend every month’

Millions of adults are regularly choosing to overspend on luxuries, treats and non-essentials.

New figures from Nationwide show that about 15.4 million people “consciously overspend” once a month.

And for many, this is having serious consequences.

For example, 35% said they’re saving less and 24% are taking money out of their savings.

Meanwhile, 17% of these people are having to spend less on food.

And for 15%, overspending means they’ll pay off less of their debt.

Who’s most likely to consciously overspend?

Women were found to be more likely to spend too much on non-essentials, with one in three doing so monthly.

That compares with just one in four men.

But the study also highlighted a notable difference in attitudes across different age groups, with young adults more likely to overspend each month than older people.

Gen Z, in particular, aren’t thinking long-term, with 52% happy to consciously overspend on items like:

• clothing
• skincare
• streaming subscriptions
• takeaways
• coffee shop drinks
• eating in restaurants

Often, this is for psychological reasons, with 42% of Gen Z respondents saying they overspend to feel good.

In addition, 18% said they spend when they’re in a low mood.

Gen Z ‘feel under pressure to keep up’

Jo Hemmings, behavioural psychologist, believes social media is partly behind young people’s impulsive attitude to money.

“In a world where they’ve grown up seeing influencers seemingly receive endless ‘hauls’, they often feel the pressure to keep up, even if it means dipping into an overdraft or putting off longer term financial goals,” she said.

“For many Gen Zs, overspending is a conscious investment in their social capital.”

Ms Hemmings added that wearing a new label or buying the latest skincare “isn’t just about the item itself”.

Instead, she believes it’s about “signalling taste, status and cultural currency”.

Budgeting for things that matter

When you think of budgeting, you might just think of making sure you’ve got enough money to pay your bills.

And yes, that’s really important.

But budgeting doesn’t just mean that and not letting yourself have fun.

It can also include making sure you have money for treats, luxuries and experiences that enhance your life.

After all, you’ll enjoy them far more if you know you can afford it without having to worry about how you’ll pay for essentials afterwards.

Get started by checking out our guide to how to create a budget, so you can see how much money you have coming in each month and where it goes.

And give our budget planner a try - it’s free and easy to use.