Why Gen Z Can’t Stop Spending But Also Feel Guilty About It

To remain socially active, the young generation spends excess money on trendy clothes, electronic gadgets, vibrant cafes, games, smartphones, jewellery, staycations, OTT subscriptions, fitness, skincare, and even well-known cafes.

They do this because spending on expensive items is a status symbol for them. Skipping out means isolation from the digital world, where everyone loves to display their possessions.

The reason why Gen Z indulge in overspending is the Fear of Missing Out (FOMO). For them, it is necessary to stay updated online and maintain parity in their friend circle.

So is FOMO the sole reason behind so much expenditure? The answer is YES.

Gen Z Prioritises Experiences More Than Possessions

In comparison to early generations, the younger generation places more emphasis on experiences than material possessions.

These include travelling, joining fitness centres, exploring hobbies, and dining out with friends etc. Investing in them keeps them happy and satisfied.

This explains why young people are spending too much money to maintain their social status and are not careless about it.

But as it says, an excess of everything is bad; it applies the same to overspending. The reason is that if you spend excess money on things, it will affect your savings sooner.

And once you start experiencing this, it obviously makes you feel anxious about your financial future.

It is observed when dealing with high expenses related to house rents, education, healthcare, and volatile job markets.

Even though Gen Z is aware of their financial status, it still makes them uncomfortable when they struggle with long-term savings.

The constant pressure to save money becomes stressful. They also feel regret due to their hasty decisions.

How To Overcome the Habit of Overspending

So this explains the real reason Gen Z overspends. Overall, it's a feeling to keep oneself happy, content, and competitive with other folks.

In other words, this habit comes with a mix of emotional spending and social pressure. The more you display, the more you build a positive impression of your investments.

On the flip side, Gen Z must realise that overspending can also lead to monetary problems in the future.

Hence, they must not overlook it and adopt a strategy that helps in financial security. And this comes with saving.

Final words

Experiencing happiness in life is not at all wrong. Still, Gen Z needs to understand the value of money and must spend it judiciously, which will help them in future.

Too much of anything always brings problems. The same can be said about overspending.

If Gen Z keep spending excessively merely for their social status and competitiveness, it will be a problem for themselves.

Hence, they must inculcate a habit of mindful saving. Invest per your needs, not for flaunting under social media pressure.

Trends come and go, but the money lost in your overspending nature will let you feel regret when you are bereft of the quantity needed.

Save money, Save future!

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