PEER PRESSURE AND LIFESTYLE INFLATION: ANALYZING THE IMPACT OF SOCIAL COMPARISON ON FINANCIAL BEHAVIOR AMONG HIGH SCHOOL STUDENTS

This study examines the influence of peer pressure and social comparison on lifestyle inflation and financial behaviour among high school students. With the increasing impact of social media, digital consumer culture, and peer influence, adolescents are becoming more susceptible to impulsive spending and unnecessary consumption. Using a quantitative, cross-sectional research design, primary data were collected from 63 respondents through a structured questionnaire employing a five-point Likert scale. Descriptive statistics, reliability analysis, validity assessment, and Pearson correlation analysis were used to examine the proposed relationships. The findings reveal a significant positive relationship between social comparison and lifestyle inflation, indicating that students who frequently compare themselves with peers and influencers tend to increase their spending. Peer pressure also showed a positive relationship with impulsive spending among high-school-aged respondents, although the relationship was only partially supported across the full sample. The study highlights the importance of financial literacy, responsible social media engagement, and parental guidance in promoting healthy financial habits among adolescents.