The fear of missing out is a real one however not to the point of financial strain
A recent survey conducted by GoBankingRates says almost 67 per cent of millennials (those aged from 18 to 34) suffer from the fear of missing out or in other words FOMO. However many millennials have placed limits on their spending habits.
Although many millennials suffer from FOMO – their desire to have some fun is kept at bay for the most part. The survey indicated millennials do have limits on how much they will push their wallets. Survey respondents (45.7 per cent) indicated they will not go into debt for any social experience if it is more than $50. The survey also said:
- Three in five millennials would refrain from going to a social event if it would put their finances in trouble
- One third of millennials prefer to use credit cards to pay for their social events in an effort to avoid overdraft fees from their bank
- Even when money is tight, 55.5 per cent will go into debt to enjoy a social experience with their friends
“This survey creates a unique picture of millennials however it concerns me that 67 per cent of respondents struggle with the fear of missing out. To manage this fear, they are turning to credit and this could be problematic down the road,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“When someone has to turn to debt on an on-going basis to enjoy social gatherings with friends, it can turn into a cycle of debt,” says Schwartz.
It can be tough being a millennial at times. If you have a mountain of debt from student loans and you are struggling to find employment, dealing with financial stress is a real issue for you. The good news is you are not alone. Many millennials are in the same boat as you are however they are managing with proper support. Consolidated Credit recognizes the financial strain you are under and we offer the following tips to help millennials manage their FOMO:
Switch your plastic
Dealing with a mountain of credit card debt can be a frustrating cycle. To help you manage your finances, consider exchanging your credit card for your debit card. If you prefer to use your credit card, you can put hard limits on it to reduce spending. Using your credit card, even paying it in full is a way of life for some consumers. Try to remember, it needs to be managed, like any other form of payment.
There’s an app for that
Knowing how much you have coming and where it is going is the cornerstone of good financial management. Get your financial house in order. Download a budgeting app to help you manage all of your expenses from afternoon coffee runs to impromptu social gatherings. When you manage your money from what is coming in to going out, you will be able to have a better understanding of your whole financial picture.
It’s okay to say no
You do not have to accept every social invitation you receive. If you miss one or two events because your finances are running low, it is okay. There will be other social events to enjoy down the road.
Confess your financial sins
Tell your friends you are financially tight and you cannot afford to run up your credit card bill. You will value your peace of mind more than the financial stress involved with struggling to pay high interest credit card debt.
Invite your friends over
An evening at home, can be more fun than a night out on the town. Invite your friends to come over, for a potluck dinner. Tell them to BYOB. You will enjoy a stress free night with your friends.
When you are unable to keep up with the minimum payments of your credit card, it is time to seek help to manage your finances. Do not worry, you are not alone. Many millennials are struggling with their debt. You can get help and be free from financial stress. You can give one of our trained credit counsellors a call at they will be able to put your mind at ease or go online for a free debt analysis.