Latest Research Unpacks Why We Spend Future Money to Cope Now

Author: Vanessa Stoykov
Category: Manage Finances

Every year around tax time, millions of Australians start dreaming about how they’ll spend money that technically isn’t theirs yet. New research from ING shows it’s happening again — with the average Aussie expecting a $1,177 refund but already spending $1,529 in their heads.

For Millennials and Gen Z, this habit runs deep — 60% and 50% admit they’ve spent or plan to spend their refund before it even lands. It’s easy to judge that as reckless. But the truth is, the habit behind it — spending money before you have it — is really about coping with uncertainty.

For many, especially Gen Z and younger Millennials, it’s not just a splurge — it’s survival. The refund might be covering rent, overdue bills or groceries that regular pay just doesn’t stretch to anymore. For others, it’s the small comfort of a night out or a new phone to feel something good when so much feels out of control.

I get it. I do it too. The point isn’t to feel guilty — it’s to get real about the trade-offs.

That refund — is it the quick hit of fun today, or a chance to breathe easier next month when the power bill lands? Is it another thing to pay off later on credit, or could it be the buffer that keeps you out of debt altogether?

When the world feels shaky, the one thing you can control is your next move. You get to choose if a small bit of relief today is worth the cost tomorrow. Sometimes it is — sometimes it isn’t. But owning that decision is where your money story shifts.

So maybe this tax time is the moment for a bigger conversation — with yourself, your partner or your family. What do you really need this money to do for you? Where can you trade a small indulgence now for bigger peace of mind later?

You can’t control the tax office — but you can control what happens when that refund lands. Spend it mindlessly, or spend it with purpose. The choice is yours.

A note about the research: This research was commissioned by ING and conducted online by YouGov. You can read more on the ING newsroom: https://newsroom.ing.com.au/millions-of-aussies-have-already-spent-1-8-billion-in-tax-refunds-they-dont-yet-have/

We’re having these financial wellbeing conversations every day — in workplaces and with member organisations across Australia. If you’d like to bring these conversations to your people, visit my contact page https://vanessastoykov.com.au/connect/ and reach out — I’d love to help.

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Authors

Vanessa Stoykov

Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.
Kathy Skantzos

Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.
Shayne Sommer

Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.
Antoinette Colbran

Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.
Michael Crooks

Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.
Kim Payne

Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.
Rebecca Pritchard

Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.
Antony Perring

Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.
Julie Hyde

Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
Joshua Pennell

As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.
Sid Lal

Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.
Lou Johnson

Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.
David Rae

Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.