Consumption and savings are opposite by nature. The term consumption denotes expenditure and by savings we understand the act of preserving money for the future needs. Again, when it comes to giving priority, consumption comes first. Most of us are in the habit of meeting the present needs from our income. After that, if there remains anything, then only savings can be done. But in the long run, it is the savings that matters most.
Effects of Consumerism
Consumerism is ruling our senses and we are gradually becoming a part of such an economy where there are enough chances of spending on consumption goods and we are availing most of these chances. By doing this, we are actually losing the opportunities of saving and somehow making our future unsecured.
The opportunities of consumption are designed in such a manner that they are bound to attract the consumers.
There are different types of loans with nominal interest rates that are availed by the individuals both purposefully and purposelessly. At the same time, the present society is quite passionate about using the credit cards. Unplanned use of credit cards are doing nothing but creating problems for the society.
All these habits of consumption are taking us far from our habit of savings. Statistics support the fact that if the saving habit of a society is under 10 percent (expendable income) or even less then that, the society is sure to face hardship.
Shift from the Concept of Consumerism
But nowadays, the society is becoming conscious about the important factor of savings. The society is very slowly shifting its focus towards acquiring social security, financial security and so on. People understand that the average age of the human race has increased to a certain level and so it has become very necessary to choose those ways that can secure the future as well as, can provide means to fulfill several other needs. Because of this, our present society is nurturing the traditional concepts of savings once more.