Over 64 million Americans blew too much money on having fun, again!
When it comes to blowing too much money on having fun, we just don’t learn our lesson. For the second year in a row, America’s biggest money mistake is blowing too much cash while having fun, according to a new finder.com annual study.
Letting our partners control our money was the second-most common money mistake, with over one in five (20.9%) of those who make money mistakes admitting this. It was followed closely by dropping out of college – also one in five people (20.2%).
A total estimated 126.5 million American adults — 56.9% of respondents — say they’ve made a money mistake in their lifetime.
Roughly 51.8% of men admit to making a money mistake, sitting just above women at 48.2%.
People in lower income brackets are far more likely to admit to making a money mistake than those in the top two income ranges. For example, a whopping 37.5% of people earning up to $25,000 a year admit to making a mistake with their finances, while just 1.8% of Americans earning $300,000 or more who make these mistakes admit the same. Similarly, 44.7% of Americans earning $25,000 to $50,000 a year admit to making a money mistake, compared with 8.2% of Americans earning $150,000 to $300,000.
Overall, Millennials are most likely to admit to making a money mistake (33.9%), followed by Baby Boomers (30.3%) and Gen X (25.7%).
But it’s not all bad news: The data suggests that Americans are getting financially savvier. Last year, a whopping 78.3% of Americans admitted to making a money mistake, 21.5 percentage points more this year.
Having too much fun!
Splurging on having fun activities like vacations, dining out and shopping was the most common money mistake, with 51.1% of those who have money regrets or an estimated 64.6 million adults. This was also the most common money mistake last year.
Gen X was the demographic splurging the most on fun: almost 60% of Gen Xers who made a money mistake admitted to forking out too much for fun, with millennials were close behind at 57.0% and baby boomers at 42.5%.
Perhaps unsurprisingly, singles (53.9%) who made money mistakes are most likely to have blown too much cash on fun, while slightly less of those in relationships (49.8%) say the same. Widows (47.5%) say that laying out too much fun money is a mistake, while those separated from their partners (45.5%) are the least likely to think so. (Maybe they’re spending just as much, but without the regret of those who are partnered.)
Is it a good idea to let your partner handle the finances?
It’s not all smooth sailing for those in relationships, however. More than one in five of Americans who made these mistakes say that letting their partner control their finances was a mistake. Nearly a quarter (23.6%) of women said they’d made this money mistake, compared with 18.4% of men. Almost one-third of those who are separated (31.8%) or divorced (31.5%) noted this money mistake — the highest proportion of any relationship status. Some 23.9% of those married or in a domestic partnership say the same.
Will you regret dropping out of college?
For the third consecutive year, more than one in five Americans who made a money mistake say they regret dropping out of college.
Interestingly, the younger you are, the more likely you regret ditching school. More than a quarter (25.7%) of millennials who made these mistakes say it’s a money mistake, while just 18.3% of Gen Xers say the same. Only 16.13% of baby boomers appear to regret dropping out of college.
Bad investments
Of those who said they made a money mistake, 19.3% said they’d made a bad investment, such as in property or stocks. It turns out the more you earn, the more likely you are to say a bad investment is a money mistake.
Those earning $300,000 or more annually (25%) lead the way on bad investments, followed by those earning $150,000 to $300,000 (20.7%) and $100,000 to $150,000 (16%). The further breakdown:
Proportion of people who made bad investment money mistakes by income brackets
$300,000 +
25.0%
$150,000 to $300,000
20.7%
$100,000 to $150,000
16.0%
$75,000 to $100,000
13.7%
$50,000 to $75,000
12.9%
$25,000 to $50,000
7.2%
0 to $25,000
7.4%
Source: finder.com
Men appear to be more critical of their investments, with 24.7% naming bad investments as a money mistake, compared with just 13.5% of women. Of the generations, baby boomers are most likely to admit to a bad investment (28.7%), followed by Gen Xers (15.9%) and millennials (12.1%).
The cost of having children
Just under 13% of respondents who made these mistakes say that having children was a money mistake. By relationship status, widows are most likely to say so (17.5%), followed by those who are married or in a domestic partnership (14.5%), those who are divorced (13.7%) and singles (9.9%).
Other financial faux pas
Other common money mistakes include gambling, getting caught in an online scam and paying too much for a wedding — all of which men are more likely to identify as a mistake than women. Of American men, 13.6% who made money mistakes admitted to gambling regret, compared with only 7.6% of women.
Men (12.5%) are nearly twice as likely as women (6.6%) to say being caught in an online scam was a money mistake, out of those who made mistakes. Perhaps unsurprisingly, half the number of women regret spending on their wedding day: only 5.2% say that paying too much for a wedding was a mistake, compared with 11.2% of men.
Other interesting money mistakes admitted by our respondents include:
Timeshares
Spending money on your ex-partner
Invested too much at the dentist
Credit card debt
Leaving a job or staying too long when they were unhappy
Buying a camper van
Didn’t save enough, or didn’t invest earlier in their careers
Trusting someone that maybe they shouldn’t have (a boss, a friend, a provider)
We analyzed data from a survey of 2,100 US adults commissioned by finder.com and conducted by Pureprofile in February 2019. Respondents could select more than one money mistake. We did not specify a timeframe and therefore count all inputs as lifetime responses.The estimated population figures were based on the American population of 222,116,302, ages 20-74, based on the United States Census Data.
Past America’s biggest money mistakes
America’s biggest money mistakes
What’s the most common money mistake made in the US? Blowing too much on fun.
We don’t often hesitate when it comes to sharing expensive purchases that we’re proud of. But what about those purchases we regret?
Our new study found that 192 million Americans, or 78.3%, have made a money mistake in their lifetime. Blowing too much on fun, for example, on vacations, dining out and shopping, is the number one culprit, with almost 2 in 3 (63.6%) naming this as a mistake.
Dropping out of college (20.2%) and making a bad investment, such as property or stocks (15.5%) are our next top mistakes, according to a study of 2,245 Americans. These were followed by letting a partner control the finances, too much gambling, having children, being caught in an online scam and paying too much for a wedding.
Do men and women make different money mistakes?
Generally, men and women admit to making similar money mistakes. 78.6% of females admit to having made one of the following money mistakes, sitting slightly above men who came in at 77.6%.
Men, however, are more critical of their investment choices, with nearly 1 in 4 (24.5%) naming bad investments as a money mistake, compared to 11.4% of women. Men are also more than twice as likely to name gambling as a money mistake (14.7%) compared to women (6.3%).
Mistake
Female
Male
Dropping out of college
20.2%
20.1%
Letting my partner control our finances
16.3%
13.2%
Having children
8.1%
7.2%
Paying too much for a wedding
6.2%
9.4%
Putting it all on black: too much gambling
6.3%
14.7%
Caught in an online scam
6.9%
9.4%
Blowing too much on fun (vacations, dining out, shopping, etc)
66.2%
58.0%
Bad investment (such as property or stocks
11.4%
24.5%
Generation
In terms of generation, it’s nearly a level a level playing field. Gen X are the most likely to admit to a money mistake (79.1%), followed by Millennials (78.9%) and Baby Boomers (74.1%). Not surprisingly, Millennials are blowing the most on fun (70.8%), followed by Gen X (59.7%) and Baby Boomers (46.0%).
When reflecting on their money mistakes, over 1 in 4 Baby Boomers admit to making a bad investment (26.6%), followed by Gen (17.3%) and Millennials (11.4%).
Have our mistakes changed in a year’s time?
Last year, our research survey showed a variety of financial mishaps abundant. Of those included, these ranked the highest:
Dropping out of college (21%)
Letting your partner control the finances (19%)
Having children (12%)
Paying too much for a wedding (9%)
Excessive gambling (8%)
Being caught in an online scam (8%)
Take control of your finances: Tips for the future
We offer a three practical first steps toward financial fitness.
Compare before you buy
Whether it’s student loans, travel insurance or even flowers for your wedding, by fully comparing your available options, you’ll have a better sense of which works best for your situation.
Another great thing about comparing is that you aren’t rushing the purchase, which means that you can bypass buyers’ remorse and gain extra time to consider whether you really want to go ahead with it.
Seek out financial assistance
To get back on track, be proactive. Research online, talk to a friend or seek expert advice. When it comes to finance, don’t be afraid to seek out help and take time with your decision. A second opinion could give you peace of mind that the unreal deal you’re looking at is actually the best one.
Get smart about online scams
The Internet is great for many things. Unfortunately, it’s opened the door to cybercrime. According to computer security company Norton, phishing, malware and other cybercrime cost Americans over $20 billion in 2015 alone. Therefore, it’s no surprise that 70% of Americans believe it’s becoming increasingly difficult to stay safe and secure online.
You can reduce the likelihood of falling prey to online scams by following a few straightforward tips: never wire money to strangers, pay by credit card (that way, you’ll have some recourse if things go awry), be wary of unsolicited email and, arguably most important, go with your gut. If it sounds too good to be true, it probably is.
Budgeting and money-saving apps
Need some help getting a budget in place to kickstart your savings? We rounded up a few apps that can put you on the path to financial freedom.
Brand
Features
PocketGuard
Link your credit cards, savings and checking accounts, investments and loans to see all of your finances in one place.
Categorize your purchases to see what you’re spending money on and discover opportunities to save.
Automatically build a personalized budget based on your income, bills and financial goals.
Get suggestions on where you can save, like by switching service providers or opening a high-interest savings account.
Available for free on iOS and Android devices.
Goodbudget
A digital version of the envelope money-saving strategy.
Budget your everyday expenses into envelopes, and create special envelopes to save money for things like vacation funds, holiday gifts and more.
Enter your transactions into the appropriate envelopes to see where your money’s going each month.
Sync your budget across multiple devices so you and your partner can manage your spending and savings together.
Available for free on iOS and Android devices.
Mint Budgeting
Link your credit cards, savings and checking accounts, investments and bills to manage your finances.
Set reminders to pay your bills and get alerts when your funds are low.
Get suggested budgets based on your spending that you can adjust to fit your needs.
Get a free credit report and daily monitoring whenever TransUnion receives new info from your creditors.
Available for free on iOS and Android devices.
JouleBug
Discover ways you can make your everyday habits more sustainable, like by recycling or drinking less bottled water.
Join local and national challenges to compete and see who’s the greenest.
Follow your friends and neighbors to see how they’re making a difference in the community.
Track the impact you’re having and how you’re saving money in the process.
Available for free on iOS and Android devices.
Mvelopes
Link your savings and checking accounts, credit cards and other financial accounts to easily manage your finances in one place.
Use the envelope money-saving strategy to create a personalized budget tailored to your unique situation.
Track your finances to see where exactly your money is going and places where you can cut back to save.
Meet with a personal finance trainer quarterly or monthly to get guidance and feedback on your progress.
Available to purchase on iOS and Android devices. Plans range from $4 to $59 a month.
We don’t often hesitate when it comes to sharing expensive purchases that we’re proud of. But what about those purchases we regret?
Our research team recently conducted a poll using Google Consumer Surveys asking 1,915 Americans to identify their biggest money mistakes. The most common answer? Dropping out of college, picked by 21% of those surveyed.
This percentage represents 67 million Americans who regret not finishing their education, and it’s an expensive mistake to make, with the average student loan coming in at $22,700. Lower-income earners — or those who earn less than $50,000 — were more likely to pick this as an error they regretted.
Five other familiar financial slip-ups
Financial mishaps were abundant, with others including:
Letting your partner control the finances (19%).
Having children (12%).
Paying too much for a wedding (9%).
Excessive gambling (8%).
Being caught by an online scam (8%).
If you’ve found yourself nodding in agreement, you’re not alone. More than half of all Americans have made at least one of these mistakes, the poll suggests.
Do men and women make different money mistakes?
Generally men and women admit to making similar money mistakes. Of those who identified dropping out of college as their biggest mistake, 48% were female and 52% were male. Letting your partner control the finances received a similar breakdown, though this time with a split of 52% women and 48% men.
Having children was a 50/50 split for both males and females. And of those admitting that paying too much for a wedding was their biggest mistake, men were most likely to feel the burn with a breakdown of 55%, compared with 45% of women.
Men proved much more susceptible to gambling than women. Of the 8% who identified gambling as their biggest mistake, almost two-thirds (62%) were men. Being caught by an online scam was common for both males (51%) and females (49%), emphasizing the need for us to get further in the know about how to keep our transactions safe.
Mistake
Female
Male
Too much gambling
38%
62%
Fell for an online scam
49%
51%
Paid too much for a wedding
45%
55%
Having children
50%
50%
Dropping out of college
48%
52%
Letting my partner control our finances
52%
48%
Take control of your finances: Tips for the future
We offer a three practical first steps toward financial fitness.
Compare before you buy
Whether it’s student loans, travel insurance or even flowers for your wedding, by fully comparing your available options, you’ll have a better sense of which works best for your situation.
Another great thing about comparing is that you aren’t rushing the purchase, which means that you can bypass buyers’ remorse and gain extra time to consider whether you really want to go ahead with it.
Seek out financial assistance
To get back on track, be proactive. Research online, talk to a friend or seek expert advice.
When it comes to finance, don’t be afraid to seek out help and take time with your decision. A second opinion could give you peace of mind that the unreal deal you’re looking at is actually the best one.
Get smart about online scams
The Internet is great for many things. Unfortunately, it’s opened the door to cybercrime. According to computer security company Norton, phishing, malware and other cybercrime cost Americans over $20 billion in 2015 alone. Therefore, it’s no surprise that 70% of Americans believe it’s becoming increasingly difficult to stay safe and secure online.
You can reduce the likelihood of falling prey to online scams by following a few straightforward tips: never wire money to strangers, pay by credit card (that way, you’ll have some recourse if things go awry), be wary of unsolicited email and, arguably most important, go with your gut. If it sounds too good to be true, it probably is.
For all media inquiries, please contact:
Richard Laycock, Insights editor and senior content marketing manager
Chelsea Gregori is the PR Specialist at Finder, where she enjoys the ebb and flow of data storytelling, relationship building and link building. Chelsea is passionate about creating content that provides valuable resources to empower the people around her to make the most informed personal finance decisions. Prior to Finder, Chelsea managed the musical duo Well Worn Soles, booking venues and festivals across the Southeast. She also managed her personal homesteading blog, Grow Where You Sow, creating content to guide individuals looking for a slower, more financially savvy lifestyle. When she isn’t diving into the world of digital and traditional PR, she’s hang drying laundry, milking goats, growing gardens, humanely raising happy livestock, making mayonnaise and contributing to a 50-acre subsistence agricultural farm and community.
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