Off Topic

Why young koreans love to splurge

  • Last Updated:
  • Jul 16th, 2019 5:22 pm
[OP]
Deal Addict
May 22, 2003
3766 posts
1561 upvotes
Vancouver

Why young koreans love to splurge

https://foreignpolicy.com/2019/07/04/wh ... t-expense/

From what I'm seeing, this is not unique to Korea. Is this the new mentality of the young generation?

edit: Link URL got censored. Can access article through link here: https://www.reddit.com/r/PersonalFinanc ... o_splurge/
Last edited by notenoughsleep on Jul 10th, 2019 3:28 pm, edited 1 time in total.
32 replies
Penalty Box
User avatar
Mar 10, 2018
2860 posts
205 upvotes
notenoughsleep wrote:
Jul 10th, 2019 1:44 pm
https://foreignpolicy.com/2019/07/04/****/

From what I'm seeing, this is not unique to Korea. Is this the new mentality of the young generation?
I love the headline. Not that I agree with that.
Sometimes blowing your paycheck can be a rational choice.
https://foreignpolicy.com/2019/07/04/wh ... t-expense/

Image
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
Deal Guru
User avatar
Apr 4, 2001
11481 posts
458 upvotes
notenoughsleep wrote:
Jul 10th, 2019 1:44 pm
https://foreignpolicy.com/2019/07/04/****/

From what I'm seeing, this is not unique to Korea. Is this the new mentality of the young generation?
It sounds to me like the mentality of the teenager that didn't make the transition to adulthood.

It'll be good for the economy. The reverse problem of people spending so much on housing that they can afford little else is an opposite problem that is bad for the economy.

The danger is that if you have a critical mass of people who have not planned for their future then government will be expected to help them out. You can say all you want about people being responsible for their actions, but nobody wants to be tripping over senior citizens writhing on the pavement while they're trying to get into the theatre... which means people who did not choose this path will end up paying for it. The boomer retirement will be a trial balloon for how we react to this as a society - in that case, they both had the opportunity and did not save for retirement. Not as potentially severe, but good enough to test potential responses.
Last edited by mbg on Jul 10th, 2019 4:50 pm, edited 1 time in total.
Deal Fanatic
User avatar
Nov 6, 2010
8420 posts
1000 upvotes
Montreal, QC
notenoughsleep wrote:
Jul 10th, 2019 3:27 pm
Ack...the "f" word is in the link and got censored out. If you replace the **** with the f-word you'll get the article.

The links is on this reddit page: https://www.reddit.com/r/PersonalFinanc ... o_splurge/
Thanks for the fix. Seems I was off with my assumptions so I'll edit this post after I finish reading the article.
Sr. Member
Nov 17, 2014
799 posts
250 upvotes
It is the "affluenza" disease suffered by many young people, who are confused with wants and needs. The cause could be their parents who financially support them too much, and did not spend enough time to teach them. As a result, these young people spend money they may not have, and to impress people they dont like.
Deal Fanatic
User avatar
Nov 13, 2010
5653 posts
745 upvotes
Scarborough
Easy fix. Simply don’t give them credit cards
Deal Guru
User avatar
Mar 14, 2005
12589 posts
1954 upvotes
City of Vancouver
You're only young once. What's the problem?
De gustibus non est disputandum
Deal Fanatic
User avatar
Nov 6, 2010
8420 posts
1000 upvotes
Montreal, QC
Seems like it's not about being unaware of their financial situation, quite the oppposite:
The term implies that you might as well make yourself happy right now because your prospects in the long term seem bleak. Buy that nice coat, because you’ll never get on the housing ladder. Eat that steak, because you’ll never save up enough to retire.
Looks like it's just an entire generation having given up because cost of living has outpaced the quality of salaries they can acquire to be able to save enough for financial security like their parents.
Deal Addict
Mar 21, 2010
4639 posts
1438 upvotes
Toronto
uber_shnitz wrote:
Jul 11th, 2019 12:03 pm
Seems like it's not about being unaware of their financial situation, quite the oppposite:


Looks like it's just an entire generation having given up because cost of living has outpaced the quality of salaries they can acquire to be able to save enough for financial security like their parents.
It sounds similar to how people who can't afford it are more likely to be spending money on lotteries. Not necessarily because they don't understand they are almost certain to lose in the end, but because they can't see any other way to get out of the hole they're in.
Deal Addict
Sep 23, 2007
4833 posts
1006 upvotes
I have some Korean friends and can shed some light.

A lot of young Koreans are deciding not to get married. Cost of living has been rising rapidly. Usually the men would provide the house and the women provide the furniture and household tools. If you live without expecting of having kids, you tend to spend more. Korea is already one of the countries with the lowest birth rate. Korean culture is also big on "respect for authority" and a lot of young people probably already feels a bit fed up with that if they don't feel they have a future.

The older generation who criticize the younger generation for overspending are simply not thinking from a different perspective. It's easy to tell others to work hard and save money when you are in a position to do so. It's harder to understand that younger generation are applying for jobs with limited success. As much as people like to complain about nepotism in Canada or in the US, in Korea (or anywhere else in Asia), it is 10 times worse. Society is competitive in ways you probably can't even understand. The country runs on nationalized exams that more or less determine your future. Everyone wants a government or big company job. You have to even put your picture on resume when you apply for jobs. The government recently hiked minimum wage sharply and it seems to have destroyed a lot of jobs.

It's not just in Korea. It's happen all over the world. Job opportunities are shrinking as automation increases. Jobs have been outsourced for ages now. When you don't have good prospects, might as well try to enjoy your life now while you are young and able.

Also, elder poverty rate is also pretty high in Korea. Most people can't even count on inheritances to save them. It's a pretty gloomy picture. I think Canadians on average have it pretty good.
Deal Fanatic
Feb 9, 2009
7818 posts
4800 upvotes
Their parents have expensive homes and they know their retirement is looked after. Not all kids obviously have this luxury of spending
Deal Fanatic
Feb 9, 2009
7818 posts
4800 upvotes
Canada has a good social net for seniors. Pensions, free medication and doctors, subsidized housing if needed.

I would say Canadian youth can go crazy and spend.

You need a balance between saving and spending. Can’t be a tight wad but also don’t want to spend every penny you have.

Top