Nowadays, many individuals take loan to purchase items that are unaffordable and unnecessary. This behavior is triggered by many influences, such as social media and consumer awareness. However, this approach can be mitigated by seeking help from authorities to enhance people’s awareness and financial management skills.
It is undeniable that social media has a great influence on people’s purchasing, many people make a use of social media as a mean of show off. Therefore, many people purchase things that they do not need or afford only to showcase their wealth on social media. Another reason of this behaviour is the lack of financial management skills; costumers are not aware of their needs and monthly expenses, they spend money without thinking about the consequenses of getting into debt by purchasing these items. Thus, having the show-off mindset and the lack of awareness trigger people to get into debt to puchase things that they do not need.
What can be taken to avoid this behavior is creating campaigns that elevate people awareness and enhance their financial skills. For example, teaching customers how to calculate their daily and monthly expenses and allocate a spacific portion of their salary for shopping makes them able to control their spendings and gives them a full image of how they spend their money. Another measure that can benefit the upcoming generation is adding finances as a main subject in highschool, which will give the next genration the potential of being capable to control their finance.
In conclusion, social media and the lack of financial management skills have a negative influence on individuals, and contribute to increasing the number of people who get into debt by purchasing goods that they do not need or afford. However, this issue can be mitigated by boosting customers’ awareness and teaching the next generation finance at young age.