Why Do People Buy Expensive Things Over Christmas? It's Deeper Than You Think

Every December, a familiar pattern emerges in Kenya: streets flood with shoppers hunting for the ‘perfect’ gift, and social media feeds light up with photos of expensive cars, lavish parties, and designer clothes.

On the surface, it may seem like a harmless celebration of generosity. But there’s a deeper phenomenon at play, one that sociologists call conspicuous consumption.

Coined by American sociologist Thorstein Veblen, conspicuous consumption describes the practice of buying goods not for their utility, but to display wealth and social status. This could be through buying a flashy car, an imported wristwatch, or even a holiday in Diani that’s shared on social media to prove status.

Sociologists note that this is not a modern problem, and human beings have for years used possessions as symbols of status.

Also Read: Money Psychology: Why Is it So Hard to Save Money?

The Psychological Drive

Conspicuous consumption is not just about wealth; it is tied to psychology. People often link their sense of self-worth to what they own. 

If your friends have new smartphones, expensive shoes, or a holiday home in Naivasha, failing to keep up can feel like falling behind in life itself. Therefore, when people gather for social gatherings such as Christmas, conspicuous consumption becomes common.

Studies show that people rarely experience lasting happiness from these purchases. Instead, the satisfaction is fleeting, and the focus quickly shifts to the next item. 

Many Kenyans, for example, may feel compelled to buy the latest iPhone every year or upgrade their car to match a friend’s, even if it means they are taking loans to buy them.

This phenomenon has also been noted to be common among the middle class, also driven by competition. For example, if one household buys a new car, the neighbors feel compelled to do the same.

Also Read: Is Social Media Ruining Your Finances?

Role of social media: The rise of social media has intensified conspicuous consumption. Platforms like Instagram and TikTok showcase influencers and celebrities enjoying luxury lifestyles. Many middle-class Kenyans try to emulate these lifestyles on a smaller scale, posting their festive purchases to validate their status. The effect is cyclical in that one person’s post triggers another’s spending, creating a self-reinforcing loop of consumption.

The Cost of Showing Off

While conspicuous consumption may make someone appear successful, it comes with significant downsides:

1. Debt: To maintain appearances, people often borrow beyond their means. Christmas spending can make one take loans that take months or even years to repay. Some may also deplete their savings or skip paying bills—only to face financial headaches in January.
2. Stress: The pressure to keep up with peers can be mentally exhausting. Stretching budgets so thin during festive seasons can make one start the year financially strained.

Read more: 5 Principles of Spending You Need to Follow

How to Deal With Conspicuous Consumption?

Awareness is the first step. Recognizing the influence of social comparison, peer pressure, and social media can help individuals make more conscious choices. Here are some practical tips for Kenyans during the festive season:

• Set a budget: Decide how much you can afford to spend on gifts, parties, and travel without borrowing. Stick to it.
• Prioritize meaningful gifts: Value does not always equal price. Handmade gifts, thoughtful gestures, or experiences can have a lasting impact without draining finances.
• Avoid debt traps: Don’t take loans or overspend to impress others. Remember, debt only prolongs stress.
• Practice practical consumption: Instead of buying to show off, buy to meet actual needs or bring joy to others.