Nowadays, youngsters spend on needless exorbitant commodities, which results in
insolvency
status
due to
their budgets being bankrupted from many financial wastes.
This
phenomenon likely stems from the influences of a consumerism society and is stuck in a financial credit trap owing to the lack of financial knowledge. There is a general consensus about a potential solution for financial education.
To begin
with, it is undeniable of the influences of consumerism culture to
this
insolvency
. Perhaps the gravest impact is peer pressure, people attempt to own some symbolised commodities just to achieve validation from their friends because they want to integrate into a community.
In addition
, in a materialistic culture, people prefer buying expensive
items
to generate a good impression of others' surroundings, which makes them feel compelled and beyond their means.
Additionally
, the prevalence of digital marketing in Korean consumerism society in social networking sites with many psychological effects that were applied to these advertisement videos to persuade a target consumer group to buy these productions.
For example
, aggressive emotional marketing techniques including fear of missing out and retail therapy in advertising campaigns have proven their effectiveness, which led to impulsive buying of youngsters in Korea and temporary skyrocketing sales during Korean holiday events.
Secondly
, many businesses launched their promotional events with plenty of discount codes and a lot of financial assistance methods to support some people, who do not have enough financial capacity, to buy their preferred
items
.
As a result
, the availability of credit cards and loans with relatively low barriers to entry can make it easy for individuals to accumulate debt, which might make them struggle with a
high-interestCorrect your spelling
show examples
ratio of
this
loan and some punishment fees as they did not pay their fees on time. In general, the lack of basic financial literacy and impulsive decision-making from losing control of emotions have contributed significantly to
this
insolvency
.
Nevertheless
, the most optimal way to alleviate
this
phenomenon is to strengthen financial knowledge about some financial assistance options provided by financial institutions.
Firstly
,
this
helps them choose the better loan with the lower fees and avoids any punishment fee in their contract.
Secondly
,
this
type of course helps them have a better financial scheme and minimizes being stuck in a financial trap.
Lastly
, they
also
need to consider the actual necessary
items
based on their requests to minimize financial waste for these trashes.
To conclude
, it is advisable that the lack of basic financial knowledge and impulsive decision-making are two of the predominant factors in
insolvency
, which can be solved by following a financial course and considering the actual necessary
items
for themselves.
