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Lifestyle
Lifestyle Inflation Challenges For The Young Generation
Friday, 21 Feb 2025
The phenomenon of lifestyle inflation is increasingly becoming a concern, especially among the younger generation and workers. This was conveyed by Anggelina Delfiana Klau, ST, M.Si, Lecturer in the Development Economics Study Program, Faculty of Economics and Business, Unimor, when talking to RRI Atambua, written on Monday (2/17/2025).
According to her, lifestyle inflation occurs when someone increases their spending along with an increase in income, so that savings and investments remain stagnant or even decrease. "This phenomenon often occurs in people who experience an increase in income, but are followed by a change in lifestyle that is more consumptive," she said.
Furthermore, she highlighted that social and cultural factors also contribute to more wasteful consumption patterns. "Social pressure from social media and the work environment often encourages individuals to adopt a more luxurious lifestyle than before, without considering long-term financial aspects," she said.
The impact of lifestyle inflation can be quite serious. In addition to inhibiting the growth of personal assets, this habit also increases financial risk, especially when someone does not have adequate emergency funds or investments. "Many young people end up trapped in a cycle of consumer debt, such as taking out loans to fulfill a lifestyle that is not commensurate with their income," he said.
To overcome this phenomenon, he suggested the importance of early financial awareness. "Every person or young person needs to understand the concept of financial planning, including managing income, expenses, savings, and investments," he said. In addition, discipline in managing the budget and distinguishing between needs and wants is the main key to avoiding the trap of lifestyle inflation.
