THE HANOI TIMES — A familiar scene unfolds in trendy Hanoi cafes. Young, fashion-forward individuals sip expensive matcha and boba while casually scrolling through their iPhones. Their Instagram feeds showcase a life of luxury: five-star brunches, designer bags, and spontaneous getaways.
However, this glamorous facade often belies a different reality. Many of these young adults are living paycheck to paycheck, spending beyond their means to project an image of affluence. This phenomenon, known as “luxury broke,” is more than just a trend; it’s a lifestyle choice fueled by social pressure, easy credit, and evolving definitions of success.
Financial surveys reveal a concerning pattern. According to a 2024 report by Anphabe, 74% of Vietnamese workers feel their income doesn’t cover basic expenses. Paradoxically, social media data shows that lower-income individuals are more likely to frequent cafes. This contradiction prompts the question: Is this financial mismanagement, or an attempt to escape economic stress?
A similar trend is observed in the United States. Experian’s research shows that 63% of Gen Z and 59% of Millennials prioritize spending on experiences like travel and concerts over saving for retirement. Instant gratification takes precedence over financial security.
Digital payments and credit options have made it all too easy to spend money one doesn’t have. Credit cards, installment plans, and “buy now, pay later” services encourage impulsive purchases without considering long-term consequences. This can quickly spiral into a cycle of debt, as confessed by 23-year-old Hoang Dung, who found herself overwhelmed by debt from borrowing to keep up with her peers.
Emotion often drives financial decisions for young people, and the fear of missing out (FOMO) is real. Social media has created a new metric for personal success, not just in career achievements but also in material possessions and extravagant experiences. Phan Hang, a recent graduate, shared how she once prioritized having the latest phone and trendy outfits over saving, only to later shift her mindset and successfully save two gold bars within a year.
However, not everyone is ready to make this change. Nhat Linh, 22, finds herself torn between saving and enjoying life. There’s a disconnect between her desired lifestyle and financial capability, a common dilemma among young adults who spend lavishly in social settings but live frugally when alone.
Overspending also creeps into dating culture. Hoang Nam observes how dating has evolved from simple meals or walks to extravagant displays of spending, with a single date costing millions just to impress. This shift leaves parents bewildered, as reflected by Ngoc Ha’s disbelief at her child’s habit of buying new clothes for every event, only to discard them after taking a picture.
This isn’t merely about money; it’s about self-worth and online perception. Luxury goods and experiences have become a form of social currency, with the validation from likes and comments sometimes outweighing financial prudence. Yet, the thrill of luxury spending is fleeting, and the instability it leaves in its wake is very real.
Striking a balance is key. A smart financial plan should include leisure and passions, but not at the expense of financial security. Building an emergency fund ensures that unexpected situations don’t become full-blown crises. After all, youth is about enjoying life, but it’s also about laying the foundation for a stable future.
