Avoiding Peer Pressure to Spend Money
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How to avoid peer pressure to spend money?
Peer pressure, often associated with middle and high school years, doesn’t miraculously vanish once we reach adulthood. Instead, it can transform into a financial challenge that affects our financial stability, relationships, and overall well-being.
According to a 2018 Credit Karma survey, “a staggering 39 percent of millennials admit to overspending, and sometimes even going into debt, in an attempt to keep up with their friends.” This financial peer pressure can wreak havoc on your finances, create unhealthy competition, and lead some people to live well beyond their means.
But fortunately, it’s possible to resist this pressure and live your best financial life.
Be open about your budget
The decision to be transparent about your budget is a personal one. However, there’s nothing inherently wrong with honesty when it comes to your financial situation. In fact, being candid about your financial status within your friend group can have several benefits. It can serve as a reality check for your friends and even prompt them to reconsider their own financial decisions.
But, admittedly, some individuals hesitate to discuss their budgets because they fear being labeled as “broke” among their peers. It’s important to note, however, that following a budget doesn’t equate to being broke.
Committing to spending a set amount on specific expenses, even if you can afford to spend more, reflects your financial responsibility and priorities. Therefore, if you feel pressured to spend more than you’re comfortable with, assert yourself and let your friends know that your decision aligns with your financial goals.
Set boundaries
More recently there’s been a rising trend of individuals complaining about friends who refuse to split bills evenly when dining out. As a result, some people feel pressure to do this…even though they don’t want to.
However, this practice of evenly dividing the bill, irrespective of what each person ordered, can result in one individual paying for others’ choices, creating an unnecessary financial burden.
So if you’re out with friends, and you’d rather pay for what you ordered, set boundaries and express your choice confidently. Most restaurants are accommodating and offer separate checks, even for larger groups.
Remember that your financial decisions should reflect your priorities, and you shouldn’t feel pressured to conform to practices that don’t work with your budget.
You have to live with the financial repercussions
One important truth about financial peer pressure is that once your peers persuade you to make a financial decision, they typically distance themselves from the consequences that follow.
They won’t be there to bail you out when you’re struggling to pay a bill or provide assistance when the credit card statement arrives. You’re left to grapple with the financial aftermath on your own. Remember this before succumbing to peer pressure.
It’s important to realize that your financial decisions, whether they’re influenced by peer pressure or not, will either bring you closer or farther from your financial goals.
Reflect on how far you’ve come and the progress you’ve made in your financial journey. Use this perspective to make decisions that match your priorities.
Don’t be ashamed of your limitations
Recognize that the individuals pressuring you to spend money likely have their own financial limitations. The key difference is that they might not care about sticking to a budget. So don’t let them drag you down with them. Your financial well-being should always be a priority. You’re not obligated to mirror their spending habits.
Re-think your friend group
At the end of the day, don’t surround yourself with people who have a negative influence on your financial decisions and well-being. Understandably, completely cutting ties with some people isn’t always realistic. However, you can take steps to protect your financial stability and peace of mind.
If you’ve consistently set boundaries, yet still face pushback from certain individuals, consider limiting association with anyone who continually undermines your financial goals. This might involve shopping alone, not participating in out-of-town activities, and even unfollowing individuals who promote excessive spending.