Author(s)

Yining Wang ¹

Affiliation(s)

¹ Mercersburg Academy, 100 Academy Dr, Mercersburg, PA, 17236, US

Corresponding Author

Yining Wang

ABSTRACT

In big cities, the younger generation enters society after experiencing ivory-tower-like training, with ambitions and a desire to create grand careers. However, one of the big challenges they face is financial management. How to obtain the greatest returns with the least financial resources has become an issue that every young person is weighing. The dazzling array of discount activities, live streaming marketing, and trendy specialty stores have attracted the attention of many young people. The desire to obtain a loan, purchase fashionable items, and live a seemingly high-quality life has become a goal pursued by many people. However, driven by sales incentives, young people may fall into the trap of over-consumption, with a backlog of personal and household debt added to their stress. This article focuses on the problem of overconsumption and mainly analyzes three key reasons behind it: the impact of sunk costs on closing mental accounts, payment isolation, and reference dependence. At the same time, practical solutions are proposed for these three causes. Although these suggestions cannot directly eradicate the phenomenon of overconsumption, I hope that readers, by reading this article, will have a basic understanding of the root causes of overconsumption and stay alert during future shopping processes.

KEYWORDS

Young people in big cities, overconsumption, behavioral economics

CITE THIS PAPER

Yining Wang, Overconsumption among Young People in Big Cities—A Research Based on Behavioral Economics. Information Systems and Economics (2024) Vol. 5: 98-105. DOI: http://dx.doi.org/10.23977/infse.2024.050214.

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