Study: Low self-esteem can trigger impulsive spending

Teenagers who have low self-esteem are at risk of developing depression or suicidal thoughts, according to FamilyFirstAid.org.

A new study suggests that individuals who have confidence problems may also encounter financial setbacks. The report was conducted by London Business School and Cornell University researchers. It appears in the journal Social Psychological and Personality Science.

Researchers asked 150 young adults to perform a task. Half of the group was told that they did poorly on the test, while the other half was told that they were proficient.

Participants were then presented with a fictional scenario in which they were asked how much money they would spend on a pair of jeans. The study's authors found that individuals who were told they did poorly on the task were willing to spend more money on the purchase, compared to the people who thought they had done well.

Furthermore, low-performing participants were also more willing to use a credit card to pay for the jeans.

The study's authors concluded that people who have low self-esteem are vulnerable to extravagant spending in an effort to make themselves feel better.

Troubled teens who have confidence issues may benefit from the treatment options offered by summer camps.