Westpac NZ is arming younger New Zealanders with knowledge about the dangers of overspending and a range of tools to help them ahead of the busiest shopping weekend of the year.
Westpac has rolled out a "spending hangover" campaign aimed at encouraging and empowering young shoppers to resist pressure to buy more than they need, know their limits and stick to them, or "spend with a friend" who can talk them out of impulse buys.
Research[1] shows Gen Z and Millennial shoppers are less engaged with their money than other age groups. This puts them at higher risk of being left with a nasty spending hangover from Black Friday and Cyber Monday.
Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says sales like Black Friday can offer great value to people who spend wisely, but people can also be more susceptible to being won over by clever sales tactics and taking on more debt than they can afford, often through the use of buy now pay later schemes.
"We want young shoppers to make the most of the sales while maintaining mindful and healthy spending habits. This initiative is about showcasing our great budgeting and spending analytics tools, specifically designed to help our customers make informed financial decisions and stay in control," Ms Hearn says.
"We're already seeing plenty of sales to entice bargain hunters, but some of the common money mistakes we see are making big money decisions without enough prior research.
"Lots of big ticket items are discounted at this time, so we encourage shoppers to ask questions, ensure they're actually getting a good deal and be mindful of not spoiling your summer plans by loading up on debt.
"Younger shoppers are particularly susceptible. Our own research shows almost 25% of 18-24 year olds say they lack motivation or discipline with savings, which puts them more at risk of overspending since their money goals aren't front of mind. That compares with just 11% for the general population.
"Another phenomenon we're watching closely is so-called "doom spending", a form of retail therapy where shoppers spend money to cope with stress caused by external events and worries like economic instability or geopolitical tension. A recent survey indicated that more than 30% of Gen Z and 40% of millennials have engaged in doom spending.
"It's understandable, but also potentially harmful to your finances. That's why we're sharing tips and advice on how to be mindful about your spending and savings goals, to help avoid a holiday hangover and manage your money better over the long term.
