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Study: 40% Of Millennials Overspend To Keep Up With Friends

PHILADEPHIA (CBS) -- By now, you may have heard about "FOMO" or "fear of missing out." But, has it hurt you financially?

A recent survey by Credit Karma found 40 percent of millennials, or people ages 22-37, have spent money they didn't have and gone into debt to keep up with their peers, often for special experiences.

"Sometimes your close friends have more earning potential, but the expectation is that everyone does the same thing," said Gaven Leib of Philadelphia.

"Why would you do that to yourself," asked fellow Philly resident Angela Kron.

Researchers found 27 percent felt uncomfortable saying no to their friends and three in four kept their debt a secret.

"That's everybody," said Diane Gordon of Philly.

Unless of course, you're part of the generation that has "FOMO" spending under control. More than half say they do.

Josh Jalinski of the Jalinski Advisory Group says the younger folks he's met are very conscientious, but, has advice for those who aren't.

"Pick friends who are like you, who are trying to save 10-15 percent of their income. Don't pick friends who drink five to ten drinks at the bar and then ask you to pick up the tab," said Jalinski.

He recommends setting up auto-payments to your 401K and emergency fund and learning to live on 80 percent of your take-home home pay.

"That way, if you want to go out that's fine. But, you're not going to dip into your auto money," said Jalinski.

For more on the survey, CLICK HERE.

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