This Alarming Statistic Sums Up Gen-Z’s Financial Struggles...

I was scrolling through X (Twitter) the other day when I saw an alarming statistic about Gen-Z spending habits…

It shocked me, but in a way, I wasn’t surprised.

It’s this statistic which sums up a lot of us young adult’s financial struggles. (I’m 23 btw)

Sure, costs are always going up. It’s certainly harder to earn a regular living now than it was 40 years ago.

But at the same time, we really don’t help ourselves, do we?

Financial peer pressure like this really does exist, and evidently, can impact up to a quarter of an entire generation to hinder their financial prospects.

So, I’m going to dive further into this problem of financial peer pressure, and how you can avoid it in the future, for greater financial success.

Yes, Peer Pressure Does Exist in Adults

When you hear the term “peer pressure”, it instantly puts you back into a school setting, or anywhere as a child.

Typically, it’s where someone tries to deliberately influence someone else into doing something they don’t want to do.

• Smoking

• Stealing something

• Bullying someone else

It’s not nice, but with adults, it’s a little bit different.

You don’t see this type of peer pressure with adults, because… well, why would you?

If we don’t want to do something, we… don’t do it.

At 23, if someone tries to pressure me into smoking, I’ll tell them to shove it up their… you get the idea.

Instead, adults can fall into the trap of what’s known as passive peer pressure.

What is Passive Peer Pressure?

Passive peer pressure is when you feel pressured into doing something (like taking an expensive trip, as the statistic showed) without anyone actively pressuring you into doing anything.

Let me expand on this example.

Say you’re in a friendship group of 5 people.

If your 4 friends all talk about the trips they’ve booked for the summer, you might feel pressured into booking one yourself, without really wanting to.

They wouldn’t even have to actively pressure you into it.

The mere act of them doing something, has pressured you into doing it.

There are loads of examples of passive peer pressure you might experience as a young adult:

• Taking expensive vacations because other people did.

• Buying a new car for no reason other than other people did.

• Getting in a relationship just because you were the only singleton.

It can go beyond finances, and in truth, it’s a very dangerous thing.

Here’s why.

The Vast Drawbacks of Passive Peer Pressure

Financially Worse Off

The obvious drawback to passive peer pressure is that you’re going to be financially worse off.

Not only this, but the money you’ll be spending will be wasted on things that you don’t even want to do. It’s all for the validation from others.

This creates what’s called an opportunity cost. Missing out on other things by making a certain decision.

If you spend £1,000 on a holiday you don’t care for, you miss out on other things like:

• Putting this money down for a house deposit.

• Investing for future returns.

• Spending it on something you actually want in the future.

So, not only are you throwing money in the bin, you’re missing out on loads of other things that could benefit you.

It’s key to know what you really want from life, so you can spend accordingly.

But, more on this later.

Less Peace of Mind

A direct impact of being financially worse off is that you’re more stressed, and lack peace of mind.

I’ve found out through my own personal experiences that mental health & peace of mind is directly linked to your financial situation.

• Bad financial situation? Bad mental health.

• Good financial situation? Good mental health.

For me, this is enough of a motivator to never be influenced by other people’s spending decisions.

There’s no replacement for good health, whether it be physical or mental.

But, when you’re swayed by passive peer pressure, you’re damaging your health.

Living For The Approval of Others

Life is about purpose, and self actualisation.

Everyone has their own reasons to live, and their own ways to be happy & fulfilled.

What’s yours? Well, I’ll tell you what it isn’t:

Living for other people’s validation.

This stems from a lack of self confidence and self validation, so what happens?

You look for it from other people.

• Friends.

• Colleagues.

• Family members.

It doesn’t matter. Anyone around you who you might be able to try and impress by spending your money on things they might think is cool.

I’ve been there, and it’s a bad place to be.

But, if I’ve managed to get out of this sticky situation, so can you.

Here are 4 ways you can start to avoid this damaging peer pressure…

How to Avoid Peer Pressure As An Adult

Go On A Path of Self Improvement

This links directly with the final drawback to passive peer pressure.

The truth is, people do it because they don’t value themselves, so spend their money for the approval of others.

To fix this? Start taking action to give yourself value and purpose.

I learned the hard way that spending money for your own satisfaction is way better than spending it for someone else’s.

And to do this, you need to go on a path of self care, putting yourself first for once.

And these 3 steps are how you’re going to do that.

Have Actual Goals You’re Proud of Chasing

A lot of financial neglect comes from people not having anything to work towards, and passive peer pressure is no different.

Personal finance expert Dave Ramsey says that “every dollar must have a purpose,” and it’s one of the most meaningful quotes about money you’ll ever hear.

The reason people spend money on things that don’t want, is because the money they have, has no purpose.

So, give your money a purpose, and set yourself some…

• Short term (under 1 year)

• Medium term (1–5 years)

• Long term (5 years +)

…financial goals.

An example of each, might be:

• Short term — get promoted to increase your earnings.

• Medium term — save for a deposit on a house.

• Long term — start investing each month to help you retire early.

You get the idea.

Don’t get me wrong, not all the money you make needs to go towards your future.

You’ve still got to live a little.

But when you do, make sure it’s on what you want to do!

Put Yourself on A Pedestal

It sounds controversial, but this part of self improvement journey was the best thing I ever did, and it feels like a superpower.

Pay attention, because this bit’s important.

There’s a very thin line here, before you turn yourself into an a**hole, but for this next step, you have to basically see yourself as more socially superior to those around you.

I remember a friend back in school trying to get me to smoke, but I wouldn’t budge.

Why? Because I saw myself as a better person than him. I looked down on him, as if you say…

“how dare you try to influence me to try and do something I don’t want to do.”

Some might call it a superiority complex, and if you can develop this without turning into a nasty person, it’ll be of great value to you.

You can begin to avoid any external influences on your spending.

On the topic of going on vacation, go from…

• “Ah, maybe I should book a trip like everyone else”

…to…

• “I’m not doing that. I’ve got other things to do with my money”

You’re combining purpose, with self validation and confidence.

Give yourself an aura of superiority, even if it’s just a facade.

People will start to respect you, and take you more seriously if you do this.

Remove Toxic/Bad People From Your Life

If you’re doing all of the things I’ve spoken about, and you’ve still got people in your life who are acting negatively towards you and your goals, there’s only thing left for you to do:

Remove them from your life.

Sure, it sounds extreme. But, in this scenario, you’ve always got to put yourself first.

I’ve done this to certain people, and I’ve never looked back.

It’s a decision that requires time.

But, if people aren’t bringing any value to your life, and are just trying to stop you from getting to where you really want to be, it’s time for them to go.

I wish you all the best on your journey to financial self improvement.

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