Impressing our friends with high social spending, showing off our designer clothes and splashing out on flash cars!
A new study reveals that we are spending £45billion annually just to "keep up with the Joneses"!
One in five of us admit to overspending due to peer pressure, and it costs each one of us, on average, £5,874 each year!
The figures come from online credit monitoring service CreditExpert.co.uk, who also reveal that over 25% of us admit we are pressured into spending more because we're embarrassed about our financial situation; we go along with our peers to avoid questions being asked!
However, it appears that being image-conscious is the main reason for us spending too much in social situations, with 37% of us feeling insecure about not fitting in.
In terms of what we are spending money on:
- 48% of us feel pressured into large rounds of drinks and the same amount feel compelled to spend more than we had planned on gifts for friends and family
- 39% of us try to impress on dates and because of this, spend more than we really should
- Its no different at work, with 38% saying we contribute more money than we would like on colleagues' leaving or birthday presents
The study of 1,450 people also found that:
We are a country of fashionistas, with 12% of us spending more than £100 a month beyond our means on clothes.
The men among us admit to overspending on our cars by £1,964 extra a year to keep up with our mates. By comparison, the ladies amongst us overspend on motoring by just £1,068.
Those of you in the East Midlands, Wales and Scotland are the most worried about being considered tight with their money, while those of you in the West Midlands and North West were least bothered what people think about them.
Those aged 18 to 24 are the most likely to give in to peer pressure purchases; 41% admit they overspend to keep up socially, compared to the national average of 19% and nearly 60% don't want to miss out as the reason for their overspending.
Not surprisingly, those of you living in London are the most susceptible to peer pressure spending with 25% of you saying you have spent more than you intended. If you live further North, you seem less inclined to keep up with the Joneses; only 14% of those in Scotland and the North East spend money they don't want to.
Jim Hodgkins, Managing Director of CreditExpert.co.uk, said: "It's staggering to see how much we're overspending just to keep up with our peers. While it's great to be generous at the bar or on a date, we should be spending because we want to and not because we feel pressured".
Below are the top 5 activities we spend beyond our means on due to peer pressure and the average cost to us per year:
1 Buying a more expensive car £1,624
2 Clothes shopping £888
3 Paying for someone else on a date, night out, day trip £660
4 Birthday, Christmas and wedding presents £600
5 Dining at a more expensive restaurant £516
So, are you a peer pressure overspender?
And if so, just how much is it costing you to keep with the Joneses?
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