Stats released by UBank showed that 19.75 million Aussies are spending an average $500 per month or $6,000 a year through these apps.
According to the research, men are spending an average of $602 each month and women $400 on items such as clothing and shoes ($89.14 compared with $75.44); dining out ($102 compared with $62); entertainment ($86 compared with $56); and tech gadgets ($88 compared with $38).
UBank CEO Philippa Watson highlighted much of the changes have come in the last 12 months as Australians adjust to pandemic living.
“COVID restrictions have not only changed the way we live but how we spend and make purchases. Australians are finding new avenues to part with their cash using apps on their phones and devices,” she said.
Broken down by generations, Millennials are spending the most each month ($773), compared with Gen X ($528), Gen Z ($465) and Baby Boomers ($236). In fact, Millennials account for 50 per cent of all discretionary spending on these channels, splashing $59.1 billion each year.
Additionally, 22 per cent of Aussies say they spend up to 40 per cent of their total discretionary spend on items via social media/apps, with nearly 10 per cent spending 50-70 per cent.
Social media is having a positive impact on spending
Despite a large sum of money being spent through social media, UBank revealed that these platforms are actually having a positive impact on money management skills.
The stats revealed that one in five Australians finds social media has had a positive impact on the way they manage their money, with as many as 35 per cent of Millennials admitting this to be the case.
“While we know young people love social media and apps, it’s encouraging to see some positive money management behaviours resulting from these channels,” Ms Watson concluded.
