What Causes Overspending?

Dave tells Kristin that overspending is a choice born out of immaturity.

QUESTION: Kristin wants to know what things cause overspending. Dave says 100% of the time it is psychological and is a choice.

ANSWER: Overspending is a choice, a decision. There’s no such thing as someone who doesn’t have a choice. Most of the time, overspending is immaturity. It’s like saying “I’m unwilling to delay pleasure to win. I’m unwilling to say no.” Is that made worse in our extreme debt marketing culture? Yes. There are credit card offers and debt marketing all over the place. Those things all go together to make a mess. Parents also have a huge influence on their kids. If parents overspend, kids will learn from that and overspend. You can teach your kids by changing.