Nowadays, it is increasingly common for people to fall into debt by over-purchasing items that are not a necessity or affordable. One may fall into this trap due to several factors which include poor financial management and social pressure. However, there are indeed several practical ways that can be implemented to mitigate this issue.
One main reason why people may buy unnecessary items is due to advertisement. Advertisements, especially on social media, very often involve false ideas and beliefs that happiness and success are tied to material possession. This would lead to many individuals falling into the temptation of buying the latest gadget and luxury goods.
Moreover, societal or peer pressure can also contribute to this habit. Sometimes, individuals may feel compelled or obliged to keep up with the trend. To make sure one’s lifestyle and ‘status’ are on par with their friends and colleagues even when borrowing money or getting a loan from a bank is required.
To address this problem, both education (awareness) and proper financial management are necessary. Schools should include financial teaching to their curriculum to educate the youngs about the importance of saving, budget and borrowing money. One must also be able to manage their budget in order to get a balance of necessities and pleasure. Also, it is crucial that people track their incomes and spendings to get an overall idea of how much their monthly expenditures should be. In addition, the government should also regulate the amount of advertisement, this is particularly helpful for those individuals who lack discernment, preventing them from having fallacious ideas and expectation from the product.
All in all, it is fairly important for everyone to keep track of their spendings and of course savings. Getting into financial difficulties not only affects the individual but also the people around them, especially those that are dependent on them, such as family members and even their children. All of this can be avoided by being aware of the problem many people are facing today.