Band 6+: Many people prefer to spend money and not save it. What are the reasons? Is this a positive or negative development?

In today’s day and age money can buy anything everything. It is the wheel that runs the economy and world. Its high value in society has enabled the one who has it in abundance to be more satisfied while becoming a constant source of agony for those deprived of it. A plethora of people prefer spending money rather than saving it, which might have negative consequences in the future.

Disposable income in economies around the world is on the rise due to which people spend more money shopping items and doing activities which they like. Many opine that cash should be spent on experiences such as adventure sports, entertainment, fine dining and other leisure activities in order to take time out from responsibilities and their hectic routine. Working professionals prefer spending their income on long holidays and vacations as a means to relive stress and relax. In contrast, some spend money in order to combat boredom by engaging in entertaining activities. In addition, due to escalating rise in social media and showoff culture, adults like to spend cash on luxury’s products in order to foster their fake image online.

Conspicuous lack of financial literacy and knowledge among a large populace has proven to be detrimental for their monetary stability. People are failing to think ahead about the issues they might face in the near future. Attention is not paid to family planning, higher education fees, retirement plan, healthcare and medical emergencies due to which many end up bankrupt submerged in huge debts in the later parts of their life.

In conclusion, as economic well-being is increasing people now have more disposable income to spend on items and experiences of their interest. While some use money as a stress buster others spend it on luxury products. Spending a huge portion of income and not prioritising savings is proven to be detrimental for many people. It is negatively hampering their financial independence forcing them to work in old age under the pressure of huge loan. This negative development has done more harm than good.