Quick Tip: Avoid FOMO overspending

CHICAGO (WLS) -- Official summer season is starting with the Memorial Day weekend and experts at Charles Schwab released a new survey that shows 30% of Chicago are spending more than they are making because of social media and FOMO, the fear of missing out. So the next time you get that last minute patio or rooftop invite, make sure that you really want to go- and that you have the cash to cover the fun .

More than 29% of Chicagoans admit they spend more than they can afford to avoid missing out on fun, or FOMO. With 28% saying their spending habits have been influenced by what their friends share on social media, according to Schwab's 2019 Modern Wealth Survey released today.

Additional key findings:

  • FOMO is particularly acute among millennials (38%) but impacts older Chicago residents as well, with 31% of Gen X and 14% of boomers feeling pressure to keep pace with friends when it comes to buying.

  • When asked what they would do with a sudden $1 million windfall, 49% of survey respondents say they would spend a portion of it-on a house first, followed by cars-pay down debt (33%), invest (30%) and save (20%).

  • Chicagoans believe it takes an average personal net worth of $2.5 million to be considered "wealthy." That's more than 25 times the actual median net worth of U.S. households (per the Federal Reserve's Survey of Consumer Finances).

  • When it comes to feeling wealthy, 69% say it isn't about a dollar amount at all, but rather the way they live their lives.

  • Nearly 52% of Chicagoans with a written financial plan feel financially stable, while only 34% of those without a plan feel the same level of comfort. But only 27% of Chicagoans have a financial plan in writing.
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