Millennials continue to spend big on ATMs

It’s not all fast cars and dining out for millennials, with new findings from Westpac showing that the youngest adult generation are spending a whole lot of money on ATM fees overseas.

Those born in the 1980-2000 bracket are spending around $11.3 billion overseas each year, with $183 million spent on international ATM fees alone. According to the 2016 Westpac Travel and Finance Report, the lack of financial knowledge is high in younger adults, who are not considering the price of cash currency conversion against international withdrawal fees.

“The research shows that millennials don’t know the cost of using international ATMs, a cost which can quickly chew through their budget,” said Westpac head of youth and millennial markets, Ashley Gray.

“[This] can be reduced though some simple research.”

Gray said that there were online tools and budgeting trackers that could help millennials digitise their overseas spending experience and save on time and money.

When surveyed, 61 per cent of millennials who used overseas ATMs said they would spend it on food drink, while 42 per cent would prefer to shop and only 11 per cent would use it for recreational activities.

Of those who use ATMs overseas, they do so an average of 10 times per trip and according to Westpac, would be willing to walk an extra 8 minutes each way to find a free ATM.

“I encourage millennials to thoroughly research their destination in advance and create a daily travel budget that takes into account current exchange rates,” said Gray.

“It’s important to be realistic when planning a budget.”

 

Related Stories

Emerging affluent consumers in Asia were more likely to boost their savings by over 40 per cent if they were more digitally savvy, according to Standard Chartered.
Digitally-savvy customers save more
Affluent consumers are a vital engine of growth the Asian economy and need to be completely... Read More
Citi Innovation Lab awarded for innovation
The Citi Innovation Lab Citi Interactive Solutions program has placed the Singapore-based bank hub... Read More
Melbourne-headquartered ANZ will sell its retail banking business in Vietnam to South Korea’s Shinhan Bank’s Vietnam bank.
ANZ sells to Shinhan Bank
ANZ is expecting to finalise the sale of its retail banking business in Vietnam to Shinhan Bank by... Read More
Japanese financial holding giant, Nomura, would use a $100 million fund to invest in Indian fintech start-ups in collaboration with PwC, Amazing, IBM, and Google.
Nomura partners with Google and Amazon for Indian fintech program
Tokyo-based financial holding firm and investment bank, Nomura, is launching a new project aimed at... Read More

Comments