As a result materialism, the present generation of people tends to have more necessities; their list of must-haves is increasingly growing. There are a wide range of luxurious technological and electrical gadgets which people have made part of their lives even though they can do without them. Consequently, they are compelled to re-allocate some of their income so that they can accommodate the additional expense of buying gadgets such as cell phones, digital cameras, laptops and mp3 players. These gadgets have become very popular among people but the down side is that they phase out very quickly; they are constantly being changed and improved. In the long run, people spend more and more money as they acquire newer versions of the gadgets. It is not unheard of for people to cut on their budgets for basic needs such as clothing and even medication just so they can acquire such gadgets. Furthermore, most people tend to purchase the latest gadgets as a result of peer pressure from friends and colleagues in school or at work (Warren, 70). People do not realize that they do not have to spend their money on an upgraded version of a device if the earlier version can still get the job done. On account of such spending patterns, people’s finances are more likely to become unstable and eventually depleted. People will continue to lose a lot of money if they keep on to giving in to the desire and pressure to acquire these additional necessities. Owing to this, the government has stepped in by giving notice to technological firms wherein governments are now imposing taxes and regulatory policies on the manufacturers of these gadgets.
Lastly, an increasing number of people are now considering taking insurances that are offered by private businesses as well as the government. By so doing, they intend to be financially secure in the future.
Warren, E and A. Tyagi. 2004. The two-income trap. Basic Books. ISBN: 0465090907
Warren, E and A. Tyagi. 2005. All your worth: the ultimate lifetime money plan. Free Press. ISBN: 0743269888