National Post - Financial Post Magazine
Keepingupappearances
OncewewereonlyconcernedwiththeJoneses, nowwe’retryingtokeepupwiththeKardashians
Muchlikebeauty,spending,orwhatconstitutesrecklessspending,is intheeyeofthebeholder.Aspirationalspendingisthebuzzwordof todayanditmeansdifferentthingstodifferentpeople.Isitreallyjust spendingmoneyonluxuryitemstomatchalifestyleyoudreamabout, butcan’treallyafford?
“Someofthisspendinghastodowiththewayweabsorbmedia now, especially millennials,” says Chantel Chapman, a Vancouver-basedfinancialliteracyadvocateandfounderofHollerForYour Dollar.“Inthepast,itwasaboutkeepingupwiththeJonesesandyou kindofhadanideawhattheJoneseswerelike.Nowwearekeeping upwiththeKardashians,whichisawalkingcommercialforconsumer goodsandkeepingupwithcelebritylifestyle.”
Theresultseemstobeadesperationforpeopletoshowtheworld they’re doing something really cool, and posting it on social media makesitabraggingkeepsakeforever.Certainly,peoplearewillingto payalotforexperiences.
PricesfortheNationalBasketballAssociationall-stargameevents inTorontothispastwinter—a-once-in-a-lifetimeshowforthecity — climbed to as much as US$3,885 for just the slam dunk contest, accordingtoStubHub.Theactualall-stargame’stoppricesoaredto US$6,500.JustinBieberwantsUS$2,000forameet-and-greetopportunityduringhis2016tour,accordingtomediareports.Ifyouwanted tohangoutbackstagewithleadsingerOzzyOsbournewhentheBlack SabbathtourrumbledintoVancouverinMarch,that’s$2,500.One canonlyimaginetheastronomicalsumswemightbewillingtopayto seeaCanadianhockeyteamintheStanleyCupfinalsgivenwhatarare occurrencethathasbecome.
Butperhapsevenworseisthatthisspendingphilosophyisbeing passedontoourchildren,aswedoleoutdollarstomeettheirevery whim,too.“Weaspiretogreatthingsforourkidsandaresocommittedtoit,wewillbuyalmostanythingforthem,”saysBrettGraff,Miami-basedauthorof NotBuyingIt. Shesaysraisingasuccessfulchildis notaboutspoilingthemwiththelatestgadgetorbesttrips.“Kidswho startaheadinschooldon’thavebettertoys,”shesays,addingthatinteractionwithparentsplaysalargerrole.Thelessonyoungchildren mustlearn,sheadds,is“needversuswant”—somethingthatcanbe appliedtoeverythingandnotjustforchildren.
There are two sides to every spending decision: one is the value youplaceontheacquisitionandtheotherishowyouaregoingtopay for your aspirations. Too often, though, debt is fuelling some of the spending.HouseholddebtinCanadaisatanall-timehighandsome ofthatisclearlygoingforprizeswecan’tnecessarilyafford.
Is there a solution to all this spending? Sure, you could aspire to something a little less exciting. How about the final Toronto Maple Leafsgamethisseason?YoucanstillpostapictureofyourselfonFacebookandthesocialmediasiteevenhasasadbuttonthesedays.StubHub hasticketsforjustover$50—hockeyinfamyisclearlyalotcheaper.