The Psychology of Money and Spending it by Dr. Carol Yip (Reaction Paper)

By Don Honorio Ventura Technological State University

            After watching the video of an author who talks about the psychology of spending money, many thoughts and question have popped inside my head. Does everyone have the ability to be a good manager of their own finances? If yes, then how? Many realizations hit me. 

            Since this course discusses everything about money, its time value, and how to handle things perfectly, the given task was directly tied to ideas and issues mentioned in the course financial markets. It could also be related to our problems in the present world. Everything has changed since the advent of globalization. Global media culture, which is seen as a determinant in how the world changes, has swiftly exhibited enormous power and immerse influence throughout this time of human history. These developments are accompanied by technology advancement and its influence on human behavior. Online banking has grown common in society, and it is possible that it may lead to a cashless society sooner or later. Online banking is now available, as is online shopping. Because it is currently more convenient than purchasing in stores, it raises people’s societal expenditures. Aside from peer pressure, digital marketing and commercials have an impact on how we spend our money. Because they make people buy stuff that they might not need, yet it’s all part of a marketing scheme. Because it alters a consumer’s purchasing habits, it reduces his efficacy as a manager of his personal finances, as well as a manager of his work, if he has one. And it becomes an issue if they are no longer able to control it. 

It is true that ever since we were kids, we’re never been taught how to spend our money wisely. But I realized that the way people spend money depends on the environment they grew up with. Dr. Carol shared that when she was in her younger years, she tended to spend a lot. Dr. Carol said that she used to spend a lot of money when she was younger. In comparison to my younger experiences, I tend to save a lot rather than spend impulsively. Because of our status, I grew up knowing the value of money. I have found that her idea of money helps me understand the behavior of the people I know. As I grew up, I’ve also come to the point that I want to buy such things just to fit in, just to go with the trend. But it doesn’t have anything good to do with me.

            Because I’ve been in that circumstances, the work helped me understand it better. However, after hearing what she said, I recognized that I can manage myself by most of the time, we were buying goods not because we needed them, but because we wanted to be contemporary.

            Therefore, I would definitely recommend this since it is a “must watch” video. It astounded me how she presented her lecture, and I was truly educated as a result. It allowed my mind to meditate and ponder on my recent purchasing activity. Also, I discovered that everyone has the power to be a good manager of their own finances, because if we think about what we want all the time and ask ourselves if it is truly needed, we will be able to modify our spending pattern. To be highly conscious of our own viewpoint, we must first know ourselves. The way we manage our own ideas and feelings will influence the way we accomplish things. As future professionals, it is advantageous to have strong control while we are still young, because it is a valuable trait that we can employ throughout our life. 

The Psychology Of Money And Spending It | Dr Carol Yip | TEDxYouth@SJIIM:

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