When we first arrive in this world, the concept of money is as foreign to us as quantum physics. As we grow, however, we learn the value of a dollar and the basics of financial literacy. Unfortunately, not everyone shakes off their initial cluelessness about finances, even in adulthood.
Many adults still struggle with financial literacy. They might squander their money and yet judge others for their spending habits. Some are convinced that their investment strategies are the only correct ones, dismissing all other approaches. This lack of financial understanding is surprisingly common.
I’ve been pondering this topic of financial disconnect recently, especially after a chat with a friend. There’s a Brazilian restaurant in San Francisco called Espetus Churrascaria that has become a fast favorite of mine, serving delicious meats that rival the finest steaks. This place reminded me of a restaurant I loved in Rio de Janeiro, which I visited back in 2006 during business school.
After an eight-year hiatus from picanha, I was eager to go back. The price, though, held me back; it’s $74 per person just for the meal. When I suggested a return visit, this time including another couple, the response was a terse “Too expensive!” It struck me as odd, given that this couple lives in a pricey $3,700-a-month apartment and owns a 2010 Porsche Cayenne and a $10,000 motorbike.
My suggestion to invite them anyway was met with hesitation from my friend, despite the fact that on paper, the couple seems to be well-off. The husband works as a hardware engineer in Silicon Valley, a job that typically comes with a hefty salary, and the wife works part-time in retail.
This scenario made me wonder: Who is really out of touch? Is it my friend, for not considering the couple’s total financial picture, or me, for making assumptions based on superficial signs of wealth?
This brings me to a broader point about how we perceive the financial status of those around us. We often make snap judgments based on what people own, like a fancy car or an expensive apartment. But these items don’t always reflect someone’s financial stability or priorities. Some might prioritize experiences or savings over luxury goods.
It’s important to consider that just because someone can afford expensive tastes, it doesn’t mean they value them. For instance, I’ve always preferred to live modestly when it comes to housing. The day I needed more than $2,000 for rent was the day I bought my first property. People often spend on what brings them joy, and that’s perfectly fine.
We should be cautious about how we let others’ perceptions influence our spending. Owning flashy items can lead others to expect that you live a certain lifestyle, which can be a trap. I encourage everyone to lean towards conservatism in their visible expenditures. This helps avoid falling into a cycle of spending inspired by others’ assumptions.
This episode has reminded me to be more understanding and less quick to judge. Financial awareness isn’t just about managing your money well; it’s also about respecting the financial choices of others, regardless of whether we would make the same choices ourselves.
