The pressure to consume: How status symbols devour our money!

The pressure to consume: How status symbols devour our money!

The pressure to consume, especially among younger people, has increased significantly in recent years. A survey by the Federal Statistical Office from 2024 shows that 21% of 18 to 34 year olds buy something in order not to leave the impression that they cannot keep up. Loud fr.de The common consumption areas here are clothing, technology and travel.

Psychologist and financial expert Margarethe Honisch explains that this pressure is based less on envy and more on the fear of being worth less. Consumption fulfills emotional functions such as belonging, reward and distraction. On average, households will spend over 4,000 euros annually on leisure, entertainment and clothing in 2023. Honisch emphasizes that many of these expenses can be avoided or optimized.

Psychological mechanisms in consumer behavior

Often people don't buy the actual product, but rather the feeling of being part of a certain social group. This is influenced by emotional difficulties and various psychological effects such as the framing effect. This effect causes people to evaluate outcomes depending on their frame of reference. For example, a win of 20 euros is perceived more positively than a loss of 30 euros, even though both are of equal value. Traders are often inclined to realize profits quickly while holding on to losses, which can result in larger financial losses. In this way, retailers use this effect to influence purchasing decisions, such as stock3.com explained.

Another relevant concept is the sunk cost effect, in which costs that have already been incurred negatively influence the decision-making process. Traders often hold onto losing investments in hopes of an impending recovery, which can cause losses to become even greater. This often happens because investors do not consider the psychological factors that influence their perception of profits and losses.

Self-reflection as the key to change

In order to free yourself from the pressure to consume, self-reflection is of great importance. Honisch offers advice to encourage this reflection. This includes questions like: “What did I want to prove to myself with this purchase?” or “Who do I want to impress and why?” Other tips include the 7-day rule, which recommends waiting a week before making expensive purchases, and a comparison detox, which involves not consuming lifestyle content on social media for a week.

Another piece of advice is to clear out your circle of friends and surround yourself with inspiring people. This makes it possible to achieve financial self-determination, which means that “having more” does not mean “being more”. Honisch emphasizes that rejecting unnecessary purchases leads to more freedom and clarity. Ultimately, anyone can get out of the pressure to consume at any time without having to be rich first.

These findings make it clear that our consumer behavior is not only influenced by external influences, but also strongly by psychological mechanisms. Consciously addressing your own purchasing motives can help you avoid unnecessary spending and develop a healthy relationship with money.