Spend Your Money Wisely Essays - Aid, Humanitarian Aid, Poverty

Spend Your Money Wisely Spend Your Money Wisely The United States has faced a very significant economic growth after the Second World War. At that time, war was finished, and the American soldiers were back to their homes. There were ready to make their future houses and start families. In other words, they started spending money in the market acquiring commodities and services rendered at that time. The country faced a population growth, -as they are refereed to baby boomers- production growth, and as a result an economic growth. Since then the spending attitude of the American individual was rising. Most of the producers have more than enough customers to buy their commodities in the market. The problem is, spending behavior is becoming worse. Who should we blame here? Is it the customers or the producers? To answer this question, I would like to examine the behaviors of consumers, and producers. Buyers in any society tend to spend more money on commodities that are necessary to life. However, the typical American consumer tends to be one of the highest spenders in the world. Most of the United States consumers save around 5% of his income where, on the other hand, Japanese; for example, have 15% or more of their income goes to their saving's accounts. One of the problems that could relate to the spending behavior of the Americans is peer pressure. For example, an individual who buys a product or acquires a service can influence his or her friends to do the same thing. Another problem is self-esteem. Sometimes, people claim that the find their identity by buying more. They follow this equation: BUY MORE = SELF-ESTEEM + IDENTITY. When an individual finds that he/she don't have a specific product, he or she feels that it is important to buy it even if it is not that important thing to have. It is just greed, and to feel that a person can buy a product because others have it. Gr eed can be better seen in children. Children feel happy when they have more of what they want. They can't stop from buying candies, toys, or electronic games. They occupy a large sector of the American consumption. I read a story tow years ago about that child who wanted to but a toy through his father credit card, but his father did not agree to go along with his wishes. What did that child do? He took his father's card and reserved a ticket to Europe and almost done it. However, adults are not free from greed. They tend to work more to earn more and as a result, to buy more. The GDP per capita doubles every ten years, but it seems that saving plans don't change and spending is increasing. At a point some people travel to attraction malls by plane just to shop. There is a fact that the number of schools is decreasing and the number of malls is increasing. A credit card is a vital thing to acquire if it is used right. The idea behind credit cards is to use under emergency circumstan ces. Unfortunately, the majority uses them to satisfy useless needs and ignore the fact that what they bought is not important. It is a kind or block-out that they go through when they find something new. As a result loans accumulate and they end up bankrupt. Marketing has played an important role in selling more of firms' products and services. It has a lot of tricks and strategies that will attract more consumers into the firms' traps. Marketers target ?victims? in different ways such as TV advertising. They convince that a person in no one unless he or she buys the product either by saying that the previous version of the product is out of date, or by showing the importance to acquire such a product to any ones ?life?. It is a fact that an average American receives about one million advertisements before he or she reaches the age of 20. Another way to advertise is through posters and brochures. Just imagine the amount of junk mail that people receive every day. It got to be one of them that grabs the attention of the poor