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ROOM 207 - BUILDING C EAP - WRITING A RESEARCH PAPER

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Statement of authorship
Students’ name(s): Do Tuan Hiep & Nguyen Quynh Anh
Class: 3K23
Student Number: 2304000034/2304000008
Subject: Research Writing
Lecturer: Trinh Thi Nha Trang
Name of research paper: THE VIETNAMESE YOUTH’S EXPENDITURE IN MODERN TIMES

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 HANOI UNIVERSITY
ENGLISH FOR SPECIFIC PURPOSES DEPARTMENT

----------------0O0-----------------

THE VIETNAMESE YOUTH’S

EXPENDITURE IN MODERN
TIMES

Teacher: Trinh Thi Nha

Trang
Students: Do Tuan Hiep &
Nguyen Quynh Anh
Class: 3K23
Course: EAP Research
Writing
Date: 6th March, 2024

TABLE OF CONTENT

i
 S
ABSTRACT...................................................................................................................................iii
1. Introduction.............................................................................................................................1
2. Discussion of findings.............................................................................................................1
2.1. Causes of overspending..................................................................................................1
2.2. Effects of overspending..................................................................................................2
2.3. Solutions of overspending..............................................................................................3
3. Conclusion and recommendations........................................................................................5

ii
 ABSTRACT

Today's young spend more money than ever on entertainment and technology, but they
also have greater debt and financial instability. Moreover, they are also facing a unique
set of financial challenges, including rising housing costs, stagnant wages, and a highly
competitive job market, which are impacting their spending habits and financial well-
being. The paper illustrates that Vietnamese young people are overspending due to many
reasons. As a result, they tend to deal with financial losses. Therefore, some
recommendations are given in the paper with the hope to change the way they spend
money.

iii
 1. Introduction

Conversations concerning the development of personal financial management skills among youth and
students in particular are not new, particularly in light of the proliferation of smartphone applications.
However, there's an issue: students still don't understand money management, which causes them to
spend carelessly and get into financial trouble when they can't afford loans or other financial necessities.
Nothing is being saved for the future. Impermanently, this group will make up the majority of the labor
force. Subsequently, multiple policy implications are presented to offer multifaceted insights into the
distinct issues faced by students.

2. Discussion of findings
2.1. Causes of overspending

Dr. Trinh Thi Phan Lan, a professor at the University of Economics and Business at Vietnam
National University, says that the term "YOLO" originates from "The Motto," one of Canadian
rapper Drake’s songs. The song encourages its listeners to live life to the fullest every day, as
everyone has only one life to live and no one can change the past.

Research on "post-traumatic growth" (started by Ronnie-Janoff Bulman of The University of

Massachusetts) has explored how terminal illness diagnoses and near- fatal experiences influence
people.

Research on "social-emotional selectivity theory" (Laura Carstensen, Stanford University)

explores the way that people devote their time. The young people generation right now makes
more money than previous generations. She says contemporary society is more consumerism-
oriented and people think their appearance defines who they are. People nowadays rely on proving
themselves on social media, rather than on their sense of knowledge, their interests, or their
financial well-being, she says.

One common cause of overspending is emotional spending. When young people's feeling down,
stressed, or bored, young people may turn to shopping as a way to temporarily boost their mood or

1
distract themselves from negative emotions. The temporary relief that comes from buying
something new can create a vicious cycle of overspending. By recognizing this pattern and finding
healthier ways to address emotional needs, young people can break free from the grip of
overspending and develop healthier coping mechanisms.

Another cause of overspending is societal pressure and advertising influence. We live in a

consumer-driven society that constantly bombards us with messages about the latest trends, must-
have products, and the idea that buying more will lead to happiness. It's important to recognize
these external pressures and develop a mindset that prioritizes financial well-being over material
possessions.

Another cause of overspending is societal pressure and advertising influence. We live in a

consumer-driven society that constantly bombards us with messages about the latest trends, must-
have products, and the idea that buying more will lead to happiness. It's important to recognize
these external pressures and develop a mindset that prioritizes financial well-being over material
possessions.
2.2. Effects of overspending

When young people constantly spend more than they earn, it becomes difficult to save for the
future or invest in assets that can grow their wealth. Overspending also restricts their ability to
handle unexpected expenses and emergencies, leaving young people vulnerable and financially
insecure. Additionally, it can strain relationships and cause emotional distress, as the constant
worry about money takes a toll on their overall well-being.

Finance expert Phan Dung Khanh acknowledges this and adds that, based on his observations, the
current generation of young people, especially Generation Z, are spending more superfluously
than their older counterparts.

Fear of missing out (a feeling of worry that an interesting or exciting event is happening
somewhere else) Psychologists put their heads together to define FOMO in 2004. While spying on
their neighbors is not new, the fear of missing out has become a definable psychological

2
phenomenon in recent years, mostly owing to social media. This research conducted in 2021 on
481 Italian adults shows that the people with problematic social networking service use, mostly
have FOMO.

When trying to recover a debt, creditors may be entirely unaware of their mental health problems.
They can act in inappropriate, and sometimes distressing ways. Young people will need to decide
if they want to tell their creditors about their mental health difficulties. If they do, then their
money adviser also needs to be aware of their mental health difficulties. This is an option if young
people owe a large amount of money and don’t have any assets. Bankruptcy lasts for up to a year
(with restricted access to financial services). After this, debts are usually written off. However, the
bankruptcy has been registered with credit agencies for 6 years, which can make it hard to get
financial services in the future.

2.3. Solutions of overspending

Lan suggests that everyone should learn about financial management, including how to earn
enough money, how to save, how to invest, and how to manage their properties. They should also
learn about insurance, securities, and pension allowances. They should seek advice from a
financial planner to plan wisely for having children, studying abroad, or taking care of elderly
parents, financially.

To break free from the cycle of overspending, it's important to assess their current financial
situation. This involves taking a detailed look at their income, expenses, debts, and assets. By
understanding the full picture of their finances, young people can identify areas where they may be
overspending and create a plan to address them. This is where most people get stuck. Facing their
financial situation is hard. Hiding from the numbers is much easier. If young people can get out of
their comfort zone and face their spending data, young people have gotten through the hardest
part. Start by gathering all their financial documents, including bank statements, credit card
statements, and bills. Create a comprehensive list of their income sources and monthly expenses,
categorizing them into essential (such as rent/mortgage, utilities, and groceries) and non-essential
(such as dining out, entertainment, and shopping). This exercise will give young people a clear

3
understanding of where their money is going and highlight areas where young people can make
adjustments. Next, analyze their debt situation. Make a list of all their outstanding debts, including
credit card balances, student loans, and personal loans. Note down the interest rates and minimum
monthly payments for each debt. This will help young people prioritize their debt repayment
strategy and make informed decisions about where to allocate their resources. Finally, assess their
assets and savings. This includes any savings accounts, investments, or retirement funds young
people may have.

One of the most effective ways to break free from overspending is to track their expenses and
identify spending patterns. Tracking their expenses provides visibility into where their money is
going and helps young people become more conscious of their spending habits. Start by keeping a
detailed record of all their expenses for a month. This includes every purchase, whether it's a cup
of coffee or a major purchase. Use a notebook, spreadsheet, or expense tracking app to jot down
the amount, date, and category of each expense. At the end of the month, review their expenses
and categorize them into different categories, such as groceries, dining out, transportation,
entertainment, and so on. This will help young people identify areas where they may be
overspending and make informed decisions about where to cut back. Look for patterns in their
spending habits. Are there certain categories where young people consistently overspend? Are
there specific triggers or situations that lead to impulsive purchases? By understanding their
spending patterns, young people can develop strategies to avoid temptation and make more
mindful choices about how they use money. Regularly tracking their expenses and identifying
spending patterns will help young people stay accountable and make incremental changes to their
spending habits over time.

Overspending is often driven by emotional needs and the desire for instant gratification. To break
free from this cycle, it's important to find alternative ways to satisfy their emotional needs without
resorting to overspending. Start by identifying the emotions that trigger their desire to spend. Are
young people seeking comfort, validation, or excitement? Once young people understand their
underlying emotional needs, explore healthier alternatives to fulfill them. For example, if young
people's feeling stressed or anxious, they find relaxation techniques that don't involve spending
money, such as meditation, exercise, or spending time in nature. If young people are seeking

4
validation or a sense of accomplishment, focus on hobbies or activities that provide a sense of
fulfillment without the need for material possessions. Engage in meaningful relationships with
friends and family that provide emotional support and connection.

By understanding the impact of overspending on their finances, identifying the root causes, and
implementing proven strategies, young people can regain control of their financial future. From
setting financial goals and creating a budget to tracking their expenses, implementing the "debit
only" approach, and finding alternative ways to satisfy emotional needs, these strategies will
empower young people to make better financial decisions and develop healthier spending habits.
Remember, breaking free from overspending is a gradual process. Be patient with themselves and
celebrate every small step forward. With determination, discipline, and the right strategies, young
people can break free from the cycle of overspending and achieve financial freedom.

3. Conclusion and recommendations

Overspending can be a challenging habit to break. Understanding the underlying reasons why
people outspend their budgets can be an important first step to taking control of spending. If young
people find that they have been overspending, they are not alone. But now that young people are
more aware of when they feel the pull to spend, instead, they can find fun ways to be smarter
shoppers.

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https://e.vnexpress.net/news/trend/young-people-overspending-big-time-in-vietnam-
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