5 Reasons Why Pinoys Overspend
Published: June 26, 2014 | Updated: June 26, 2020 | Posted by: Moneymax | Personal Finance
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Among all documented forms of groupthink in behavioral science, the bandwagon effect is the most evident in Philippine society. Anything that is making a lot of noise and reaching the headlines in other countries is guaranteed to trigger a buying frenzy among Pinoys.
The most recent trends that have caused a bandwagon effect in the country are Cookie Butter, cronuts, selfie pods, and LoomBands.
2. Cultural Traditions
There are practices, rituals, events, and occasions that Filipinos religiously follow. Sometimes even when the times are tough and some practices do not fit our budget, we overstretch our finances just to be able to adhere to what our forefathers have instilled in us.
For example, it’s perfectly fine to give back to the Church or whichever religious organization we belong. However, some people who are not careful with religious offerings end up hungry, financially stressed, or in debt. In this case, faith is not measured by how much money you’re giving. If you can’t afford to tithe 10 percent of your salary, then don’t. Give what you can, and make up for your shortcomings by doing good deeds.
It is okay to follow family and cultural traditions, just remember to align your spending with the amount you can only afford.
3. Love for Brands – Mostly Foreign Brands
Let us not turn a blind eye on our love for brands – especially for foreign brands. Surely, no one wants to admit being a social climber, and most Juans would justify their love for brands by saying “I can afford it.” All right, you already.
You have the money, you know the hottest and most luxurious brands, but you have no idea how great the repercussions are. This specific kind of spending behavior does not only make you spend more and save less. It also has a negative impact on local industries. Have you ever wondered why many local brands are now defunct? Hmm… Now is the right time to think about it.
Read More: 5 Habits That Will Stop You From Being Rich
4. False Sense of Entitlement
You may have the money to pay off our Motherland’s debts, but no individual can have everything, not even Bill Gates. Having a false sense of entitlement guarantees a huge downfall. The “I am, therefore give to me” attitude that is adopted by children or teens will produce more spoiled brats, rebels, and primadonnas in our society.
See, reinforcement is a good practice, but no one must get used to receiving rewards because it kills the motivation and the right mindset to succeed in life.
An individual who has a false sense of entitlement gets what he wants when he wants it, and most likely has an empty savings account. He also doesn’t need the backbone to make a living. (Perhaps, we can volunteer a donor to help our heroes who have been fighting to get out of their hospital beds and back on their feet again?)
5. Emotional Spending
Life is a circus, and so are women’s spending habits. Emotional spending is mostly developed by women who are experiencing stress and trauma. Shopping has become a big part of a lady’s coping mechanism so that she may be able to feel better about herself and see the beauty that is left in this world.
Laugh all you want or get mad if you’re guilty (or just being defensive), but if emotional spending has become a habit, there’s probably a need to call for help before it gets worse. Emotional spending may eventually lead to hoarding which may signal a psychological disorder.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.