Conducted by Lonergan Research, the survey of more than 1,100 people found almost all Australians (94%) are splurging on themselves despite the current cost of living pressures, with Gen Z (68%) and Millennials (56%) the most likely to spend on impulse purchases.
The survey also comes off the back off recent data released by the ABS, which showed household spending had risen 29% in August.
This is despite cost of living pressures and the most recent annual inflation data coming to a 32-year high of 7.3%; consumer spending contributes to this figure.
The research by MyState Bank found while nearly half (45%) of those who splurged on themselves felt happy, the instant gratification wore off quickly - with almost five million Australians buying something in the last week they already regret.
However, despite the regret, seven out of eight Australians admitted they are aware of when they’re more likely to engage in that spending behaviour.
According to the survey, a third (33%) of Australians who have worked hard to save are undoing it by treating themselves as a reward for having previously passed on the opportunity to purchase something they didn’t need.
One quarter (25%) of Australians revealed their most regrettable purchases included exercise equipment and health accessories - compared to only 6% regretting a tattoo.
The research also found that those regret purchases are impacting Australians’ mental and financial health.
A third of those surveyed believe that purchase regret is taking a negative toll on their mental health (34%), worrying that they’re too set in their ways to manage their money better.
The survey reported that half (49%) of Australians agreed that their impulse purchases are costing more than ever due to the current cost of living pressures.
MyState Bank Managing Director and CEO Brett Morgan said he hopes the survey results remind Australians that we’ve all made money mishaps, and it’s never too late to reset and start good savings habits.
"In the past week alone, almost five million Australians will have purchased something they already regret - money mishaps are something we’re all guilty of, and we want to help, rather than feel any shame about it," Mr Morgan said.
MyState Bank offers $50 sign-up bonus to help Aussies get back on track
As an early sign-up incentive, new MyState Bank customers can receive $50 when they open a new account and deposit $50.
The offer is available for the first 2,500 Australians who sign up by Tuesday 29 November 2022.
Customers can earn up to 3.60% p.a. by depositing $20 a month and making five debit card purchases with the linked transaction account.
This is comparable to many savings accounts but behind the eight-ball when it comes to the market leaders following the RBA's October cash rate announcement.
For reference, the average online savings account rate for September was 2.25% p.a. according to the RBA.
"We’ve all made mistakes, and MyState Bank is committed to helping Australians get back on track with their money, and reminding them it’s never too late to start saving," Mr Morgan said.
"We hope this clean-slate initiative will inject some positivity into the conversation, turning our money mishaps into an opportunity for a fresh financial start."
Tasmanian-based MyState Bank is the eleventh-largest customer-owned bank in terms of assets.
Since the start of the RBA's tightening cycle in May - from the end of April through the end of August (the latest data) - MyState has grown the volume of household deposits on its books by $343 million to $4.65 billion.
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