Many maintain the belief that some people get into debt by buying things they don’t require and cant necessarily afford them. The reason for this behavior may vary from person to person and there are various measures that can be taken to improve them.
The motives may emerge from inferiority complex, peer pressure, social comparison or materialism. Various solutions can be incorporated in schools, companies or even by the government itself.
To broaden the concept, numerous people start comparing themselves to the public around them especially through social media. This mentality of purchasing things which are neither affordable nor required begin from here. One of the main reason is the peer pressure surrounding young people which makes them feel compelled to match the lifestyle of the folks close to them. A few people tend to purchase unnecessary stuff only due their likings and desires.
To address this growing issue, firstly, financial literacy should be taught in schools. They should adapt brief lessons on money management for students so that they can understand to distinguish between their needs and wants clearly. Secondly, the companies can incorporate certain courses for their employees regarding managing personal finances. Moreover, the government can impose strict rules regarding advertisements promoting that consumption links to happiness. On a personal note I think people should also practice mindful spending habits to manage their expenses neatly.
Overall, people fall into this trap due to the modern consumption culture. However, through financial education and learning to handle spending habits this problem can be significantly reduced.