Young Australians are owed hundreds of dollars from mates, but are too timid to ask for it to be repaid.
New research estimates we are owed, on average, $423 by friends, family, partners and colleagues who haven’t paid back their share of expenses, with the figure higher for Gen Z.
Conducted by financial technology company PayPal, the survey found two-thirds of Australians (67 percent) avoided asking to be repaid because it felt too awkward.
PayPal Australia Head of Consumer Engagement Thomas Suffren said 71 percent stated chasing repayments made them feel uncomfortable.
Mr Suffren said it was a behaviour that was fuelling what’s been dubbed as the hidden “Bestie Tax” – the silent cost of sparing friends’ feelings at the expense of their own wallets.
“When it comes to repayment, money is such a sensitive subject that many Aussies would rather tackle other uncomfortable conversations instead.”
He said more than a third (36 percent) said they’d prefer to talk about politics, one-in-four (25 percent) would rather discuss religion, and one-in-five (20 percent) would rather talk about sex.
“Some even admit they’d rather tell someone they have bad breath or body odour (9 percent) than remind them about money owed.”
Mr Suffren said the reluctance was even greater among young Australians.
He said Gen Z were significantly more uncomfortable than the national average when it came to asking for repayment, with 81 percent saying they felt awkward compared to 71 percent of Australians overall.
“They are also far more likely to avoid the conversation entirely, with nearly three-quarters of Gen Z (74 percent) admitting they have avoided asking to be paid back, compared to 67 percent nationally.”
Mr Suffren that silence came at a cost, with nearly three-in-four Gen Zs (72 percent) saying they’ve been left out of pocket for money that was never repaid, compared with 63 percent of Australians overall.
“This means that Gen Z is disproportionately paying the hidden ‘Bestie Tax’ by staying silent more often, and ultimately losing more money across meals, drinks, tickets, and shared experiences.”
He said the impact was widespread, with almost two third of Australians (63 percent) saying they’ve been let down financially by someone close to them.
“Friends are the worst offenders, with 42 percent naming mates as the least reliable at paying them back, followed by co-workers and adult children (both 18 percent).”
