By: Amie Jin

Have you ever felt the need to buy something just to fit in or maintain a certain image? Well, you’re not alone. A recent Forbes article, “Status Drives Millennials To Spend More On Luxury Goods. Is Conspicuous Consumption Coming Back?” by Pamela N. Danziger, highlights the strong effect that status has on consumer behavior. This rising trend, known as conspicuous consumption, is the practice of purchasing goods or services with the purpose of flaunting one’s wealth. A study of 2,000 individuals found that 63% of Millennials purchased luxury goods in 2024, with 51% expected to further spend in 2025. Their motivation for this? While many cite traditional reasons such as materials, craftsmanship, and durability, most are also driven by brand recognition, scarcity, and high ratings. 

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Danziger credits the overuse of social media to conspicuous consumption. Constant exposure to influencers who post luxury items, fancy trips, and unrealistic beauty standards has made these impractical lifestyles seem desirable and even the “norm”. Consequently, many young people feel pressured to purchase luxury items, often putting their social image over financial stability. Prioritizing high-end goods and status can lead to a financial tradeoff: giving up something else, such as saving money or basic needs, to purchase luxury items instead. 

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For high schoolers, understanding these trends is important because financial habits begin young. By learning how to smartly spend your earnings, you can help prevent future debt or overspending. One of the best ways to do that is through budgeting. Strategically allocating your money is the best way to ensure a balance between long-term financial goals, basic needs, and treating yourself. 

 

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