MONEY SPENDING STYLE: INDIVIDUAL FACTORS DETERMINING SPENDING DIFFERENCES

Abstract

The ability to manage money is something that people learn from the moment they are born. Not everyone have the ability to perform tasks with ease from birth. While some individuals with high earnings might never save money, others with low incomes might experience financial difficulties from time to time. This article discusses the factors that influence a person's degree of upkeep, their capacity to manage their finances, and their enjoyment of spending. Mental accounting, which classifies money into mental categories, and emotional accounting, which analyzes the money's emotional source, also have an impact on financial decisions about saving and spending. Several other elements determine whether or not an individual exercises control over their spending. Whether or not someone manages their spending, their financial situation is also influenced by a variety of psychological factors, such as their level and kind of materialism, self-control, and perspective on time. Money is accepted as legal money as well as a method of exchange. Individuals exchange their earnings for a range of goods and services. We recognize the worth of the things we purchase, so we are grateful for the money we spend on them. In addition to its usefulness, money possesses a deep emotional connection with people that stems from its ability to fulfill a multitude of needs and wants. When compared to many other similarly valued but more neutral goods, money has a different effect on people's reactions. Age, income, and education level are only a few examples of demographic factors that can explain financial behavior. It turns out that these factors only account for a portion of the behavior in this domain; more accurate explanations of the complexity of financial attitudes and behavior forecasting in this domain come from analyses that incorporate psychological variables including personality traits, self-control, and time perspective. A model of money spending habits based on two dimensions is presented in this article: Simple spending and expense control are examples of behavioral variables, but the emotions that go along with this behavior are known as emotional factors (positive vs. negative).The other gender-based factor is the difference in men's and women's spending patterns. The disparity between the spending habits of men and women is the other gender-based aspect.