Financial risks of revenge spending

AS the world bounces back from the Covid pandemic and the economy starts to pick up, the phenomenon called "revenge spending" is trending and getting very popular these days. Revenge spending refers to the tendency of a person to spend excessively after coming from isolation or a period when one has had limited opportunities to spend. Simply put, it is the urge to spend more money to make up for the lost time.

There is an obvious increased movement in the spending activities of many Filipinos after two and a half years of lockdowns and quarantines. Malls and restaurants are now teeming with people, airports are once again busy, hotels and resorts almost in full capacity, and traffic jams are back in all major roads and highways. This is definitely a welcome development for our economy, as it translates to better business income and employment. In fact, economists have reported that the Philippines' 5.6 percent GDP growth in 2021 was supercharged by the surge in household consumption.