“Keeping up with the Joneses” was a concept that emerged during the 1950s and never went out of style. Many Americans are still looking to impress their family and friends, and some people base their spending on this concept.
Spending to Impress Not New
Spending to impress is what economists call “conspicuous consumption.” The phrase has existed since 1899, so this isn’t a modern-day phenomenon. It was originally coined to describe the habits of the emerging upper class. They were made rich by the industrial revolution. This new class wanted to establish their worth in their peers’ eyes. The result was leading a lavish lifestyle to impress.40 percent of Americans Spend to Impress
Over-the-top spending is prevalent in America. Forty percent overspent on clothes, shoes, and accessories to make a statement to others.This is more common among the younger generations. Fifty-two percent of Generation Z and 46 percent of millennials spent to impress. At the same time, 34 percent of Generation X and 25 percent of baby boomers felt the need to dazzle their friends.
Spending Meant to Impress
Will Rogers said it best: “Too many people spend money they earned … to buy things they don’t want … to impress people they don’t like.” But Americans keep trying to impress. They spend on various items, both large and small.Apparel isn’t the only way that many spend their dollars. Purchasing an oversized house in an upscale neighborhood is another way to impress, and with that house comes a luxury car in the driveway.
Buying the latest tech gadgets is often a small but pricey way to try to impress. And dinners out where you pick up the check for friends can quickly add a balance to the credit card.
Reasons to Overspend to Impress
There are several reasons that people spend to impress. Thirty-five percent of Americans wanted to feel successful. Some wanted to impress family members or a date. Other reasons include:- too embarrassed to say no
- look good on social media
- want others to be jealous
- want to get a raise or promotion
- feel like a better friend or family member
Our prehistoric brains still power us; although we’ve evolved, humans still go with herd behavior to a certain extent. There is an instinct to keep up with other people’s lifestyles. No one wants to be left behind. This can trick some people into spending more or on impulse to impress others even though we know we can’t afford to.
Making Less Money to Impress
Some people consider a job that will look good to their friends and family even if it pays less. Career choices are made based on prestige. To friends and family, an entry-level job earning $30,000 a year in a high-end advertising agency appears more prestigious than a welding job at $60,000 per year.Debt Creates Regret
Debt regret happens quickly for most people when they overspend. Seventy-seven percent of people who tried to impress others by overspending regretted their actions.The term “overspending” implies spending more than you have. That means using credit cards to finance this behavior. The result is that 63 percent of those who overspent to impress went into debt.
How to Break the Spending Cycle
There’s pressure to try to keep up with the Joneses. Twenty-eight percent of Americans feel it. But by stepping away from social media and reducing shopping trips, the “impressing” cycle can be broken.Question Spending Motives
Financial decisions you make today affect your future needs. By trying to impress people you not only hurt today’s finances but depreciate any efforts for tomorrow.Buying the latest luxury car or diamond bracelet to impress is a surefire way to go broke. Don’t get drawn into keeping up with the Joneses. The prudent way is to save and invest. You can keep up by giving your time to friends and family.
