Aspirational Consumption: What it is and How to Manage it

By: Lauren Hughes

On the podcast No Stupid Questions hosted by Angela Duckworth and Stephen Dubner, they discuss common questions humans contemplate on a daily basis. In August of 2021, they released an episode called “ Why Do We Buy Things We Never Use?”. During this episode they discussed aspirational consumerism, and how this often leads people to buy too much of one product. An example of this consumption habit was given by Dubner, who exaggeratedly claimed he has “600 boxes of quinoa at home” and has never eaten any of them. Yet he continues to buy more boxes. Many of us can relate to buying too much of a product (e.g. clothes, shoes, or food) that we intend to use, but never actually get around to. This leads to overflowing closets and cabinets, and a big dent in our bank accounts. So why do we do this?

According to Duckworth, aspirational consumption is the answer. As the term implies, consumers aspire to purchase a certain product or brand as a means of satisfying their ego, and need to fit in with a certain social group. Turning further inward, there is a psychological concept called “The Logic of Appropriateness” which explains what drives this behavior. James March who coined this term chalks it up to three simple questions we ask ourselves: “What situation is this? Who am I? And what does someone like me do in a situation like this?” (Duckworth, 2021). This quick mental analysis ignores “cost-benefit thinking”, and relies solely on the individual’s need to have a secure sense of self-worth.

Today’s advertising is designed to jump-start this thought process and leads to impulse buying. Think of a celebrity you admire who has recently endorsed a brand. Did you purchase the product? Perhaps you aspire to be like them, and by purchasing this product you were able to embody the sense of power and prestige associated with this celebrity.

Although consumers should be conscious of the potential downsides to aspirational consumption, there are some positive aspects as well. As explained in the 2021 Forbes article “Luxury Consumers haven’t gone Post-Aspirational, Rather they Aspire for Different Things”, consumers' aspirations are shifting, forcing corporations to reassess their marketing tactics. Consumers want to purchase from brands whose core values align with their own. The article states, “Authenticity of the brand that reflects the authentic self of the consumer is the focus needed today” (Danziger, 2021). This has led to an increase in conscientious consumption, in which consumers are more mindful of the products and brands they choose to purchase from.

Next time you think about buying that new bag or pair of shoes, consider these steps:

  • Make an effort to use the products you already have at home 

  • Donate excess products 

  • Check out resources such as @TheSustainableFashionForum on Instagram for inspiration on how to make small changes in your purchasing patterns that can have a big impact on the environment

References:

https://freakonomics.com/podcast/why-do-we-buy-things-we-never-use-rebroadcast/

https://www.forbes.com/sites/pamdanziger/2021/03/14/luxury-consumers-havent-gone-post-aspirational-rather-they-aspire-for-different-things/?sh=7700b3ca2b91

https://www.forbes.com/sites/pamdanziger/2021/01/10/luxury-turns-from-conspicuous-to-conscientious-in-2021-challenges-and-opportunities-ahead/?sh=104355bb5a9b

The Importance of Financial Awareness + Independence

By: Katherine Downs

When you think of ‘Finance’, what do you think about? If you asked me this question just a few weeks ago I would’ve responded with something general like “money” or “math for investing”. I knew it had to do with money and balancing a checkbook but had little to no understanding of how big a role finance actually plays in our everyday activities. I avoided taking finance courses in school because I figured it would just be another confusing math class I wouldn’t enjoy. I knew finance was a complex concept (more than just spending vs saving the money you possess), but recently realized how essential financial knowledge is to have, even if it's just the basics. Many modern-day women generationally have been avoiding the concept of finance in their personal lives, like myself, and by doing so are unknowingly self-sabotaging their financial security in the future. 

If any of you caught Robin Hauser’s “$avvy” documentary screening last week in Isenberg, you already know how even in modern times many women don’t control their personal finances. Why is this? Well for me, I never considered looking into finance because it seemed too complicated and I didn’t think I made enough money to really get into it. Hauser’s amazing documentary showed me that this is not the case! It doesn’t matter how much money you currently have or make, everyone can take control of their finances, and with financial knowledge comes financial freedom. It may be easier to rely on someone else (husband, spouse, parents, etc.) to handle the money, but then someone else is in control of how much money you have access to–even if you’re the one who rightfully earned it! In cases of divorce or unforeseen circumstances, women (and sometimes men) often lose the majority of everything they’ve earned if they don’t control access to their money for themselves. About 20% of women fall into poverty due to divorce and this is largely because they did not have any control over their finances prior (Silvestrini). 

So how can we change this societal dynamic and improve our own lives through the management of our own finances? Collectively, we can start by being more open to conversations about money management and in turn, improving financial education. Individually, there are 4 steps you can take to get you started on your journey to financial independence: 

Create a Spending Plan (or Budget) Based on Your Saving Goals and Income A good place to start taking control of your personal finances is by opening 2-3 types of bank accounts to organize your money: 

- A Savings Account 

- A Checking Account 

- A Retirement Account (separate or combined with Savings) 

Having a combination of these types of accounts can make organizing your money easier to manage. For example, putting away a portion of your income into a long-term savings account can allow you to have money for emergency situations you otherwise may not have been able to

afford. A checking account (which comes with a debit card) is a great place to store money you plan to spend soon, without expending money from your savings/emergency funds. In addition to saving for unexpected expenses, it’s a really good idea to begin setting aside some money for retirement! A lot of employers will offer 401K or other retirement investing plans, and some may even set aside a certain amount from each of your paychecks for you! The sooner you start setting money aside for retirement, the more money you will have when you retire and the better off you will feel! 

Apply for a Credit Card and Build a Line of Credit 

Opening a Credit Card allows you to gain and build credit history, which can help you tremendously when applying for loans, get better rates of insurance, and have more housing/transportation options. Just make sure you pay off the full amount when your monthly bill comes, otherwise, you may end up paying even more later in added interest! If you’re worried about overstretching your current financial limits, try starting by only using your credit card to make a certain type of payment you’re already used to paying each month. For example, only use your credit card to fill your gas tank, or only to buy monthly groceries. This idea can help you better keep track of how much you should set aside to pay your monthly credit card bill, and not overextend your spending limits or put you in debt! 

Start Investing (Even if it’s Small Amounts!) 

Investing a portion of your finances gives your money a chance to grow on its own! You can invest in different ways, such as through bonds (loans to companies who later pay you back) or through stocks (partial ownership/share of a corporation). A good rule of thumb is to only invest amounts of money that you are willing to lose. This way, you have more control over the amount of risk you take with your investments! It’s not a good idea to rely on investments as a sole form of income, as markets can be unpredictable. Also, I wouldn’t recommend putting all of your savings into investing–as you may need to have some liquid savings on hand for unplanned/emergency expenses. Overall, however, investing can give you a major advantage in increasing your amount of savings and will benefit you in the long run! 

Practice Open Financial Communication In Your Household 

Practicing open financial planning and communication with your living 

partner/spouse/roommate/significant other allows you to not be left in the dark about your financial situation. It also allows you to keep (or gain some) independence over your financial spending in regards to living expenses and personal use. If you’re making an income, you deserve to either have full control and/or have a say in where your money gets to be spent! 

Sources: 

- “$avvy” (2021) documentary film directed by Robin Hauser 

- Silvestrini, Elaine. “Women & Financial Literacy.” Edited by Emily Miller, Annuity.org, Feb. 2022, https://www.annuity.org/financial-literacy/women/.

5 Reasons Why You Should Study Abroad

By: Olivia Coelho

Going into college my freshman year, I knew I wanted to study abroad. I knew I wanted to live in another country and travel; the idea of getting to experience new cultures and see places I had only ever seen in pictures seemed so exciting. While I may be biased, as I am currently studying abroad in London this semester, I think it is something everyone should do if they are able to. If you are interested in traveling but unsure if you should study abroad, here is a list of 5 reasons why studying abroad is worth it!

  1. Meeting new people and making new friends: One thing I love about studying abroad is all of the new people I’ve met! I have learned a lot about different cultures in Europe because of the people I talked to while being in London and while traveling to other countries; I have also made friends with other Americans studying abroad in London too. And if you end up making a few friends while you are abroad, it gives you even more reason to come back and visit in the future. 

  2. You can practice your language skills: If you decide to study abroad in a country where English is not the official language, it is a perfect opportunity to brush up on your language skills. Even if you are a bit rusty speaking the country’s language, immersing yourself in it is the best way to relearn how to speak it. Plus, practicing and speaking the language can also help you meet new people.

  3. Become more independent: Deciding to study in London for a semester has challenged my sense of independence in the best way possible. I have always been introverted and enjoyed doing certain things alone, which has made living in London great because it is easy to navigate by myself. If you want to learn your way around a new city and push yourself out of your comfort zone, then studying abroad is a great opportunity to do so.

  4. Getting to travel to nearby countries: Something I love about studying in the UK is how easy it is to catch a train or flight to a nearby country. During my time here, I have already been to France, Denmark, and Spain! It’s fascinating getting to experience new places without any prior knowledge and it’s also fun to visit places you always dreamed of going to. Getting to explore not just the UK, but also other countries in Europe has been a rewarding and educational experience I’d recommend to anyone.

  5. Learning more about yourself: This point kind of goes along with becoming more independent, but studying abroad challenges how well you think you know yourself. Having to do things on your own, especially in a different country, teaches you about your strengths and weaknesses; and as you get used to living in a new place, it also offers you the chance to work on these things.

Studying abroad can be an exciting but also daunting experience. It pushes you out of your comfort zone and gets you to immerse yourself in new cultures. If you think studying abroad is something you’re interested in, go for it! Talk with the advisors at Education Abroad – they are super helpful and give great advice that can point you in the right direction. Studying abroad offers many great benefits and opportunities and I hope my insight got you to see some of the reasons why it is worth it.

WiB x Smart Women Securities on Wednesday!

Happy Sunday!

We hope you are all having a great long weekend! Due to having no classes on Monday, we will be having our next meeting this Wednesday. Please note that we will NOT be meeting in Flavin on Wednesday - but instead, Isenberg Room 210 (second floor in the atrium).

This Wednesday, April 20th, at 7pm in Isenberg 210 (2nd floor in the atrium), we will be teaming up with Smart Women Securities, a finance club here at UMass, who will be presenting to us about personal finances and how to manage them as a young professional and college student! This will be a very useful meeting for everyone - you don't want to miss it!

We will be live streaming on Zoom for our virtual members to attend:

Zoom Link: https://umass-amherst.zoom.us/j/92299580036
Meeting ID:
922 9958 0036

Headshot Fundraiser - We will be holding another opportunity for you to get your headshots taken! This will be open to everyone - so tell your friends! Everyone needs a good headshot for their LinkedIn! It will be on Friday, April 22nd in the Isenberg Hub from 1 - 3pm and is $5 for everyone including WiB members.

Why WiB Wednesday - Fill out this form to be featured on the Instagram for "Why WiB Wednesday"! We want to show off our members by sharing what they love most about being a part of WiB!

Committee Sign-Ups and Reminders:

  • Fundraising Committee - To sign up for the fundraising committee, click here!

  • Community Service Committee - Please sign up here for the community service committee! Our next meeting will be April 27th at 7:00 PM, where we will be signing up for Not Bread Alone and doing some fun activities!

  • Marketing Committee - Sign up here for the marketing committee. Our last meeting for the semester will be held on April 21st!

Be sure to follow our social media accounts for more frequent updates, Instagram specifically (@IsenbergWiB), and check out our website here!

Additional Opportunities


Minutemen Fixed Income FundThe Minutemen Fixed Income Fund (MFIF) is a group of ~25 students who attend tri-weekly meetings which focus on the fundamentals of credit research, financial modeling (LBO, M&A, DCF), and professional development. Junior Analysts are paired with Senior Analysts for one-on-one mentorship and support. Our Analysts develop high yield credit research reports and pitch their investment recommendations to the Fund. We seek to prepare our members for competitive roles in Investment Banking, Sales & Trading, Equity/Credit Research, and more. It is important to note that almost all of our members start out with little to no knowledge about fixed income investing, yet quickly develop the essential skills needed to land jobs in the aforementioned career paths. Applications Due TONIGHT, Sunday, April 17th @ 11:59PM Please visit their website for more details and to apply.
Minutemen Equity Fund
The Minutemen Equity Fund is now accepting applications! We invite freshmen and sophomores of all majors who are interested in joining our Fall 2022 junior analyst class to apply by midnight on April 18th. The Minutemen Equity Fund is a student-run investment fund managing a $400,000 AUM portfolio with a long-only value strategy. The fund's analysts work in a junior/senior analyst pair to cover each sector of our portfolio, continually monitoring our existing holdings and presenting new investment ideas. Analysts learn equity research, financial modeling, and other skills related to successful coverage of their sector, as well as networking and recruiting skills to pursue their desired internship roles. Please see the following link to find the application on our website. Feel free to reach out to our leadership team or email address if you have any questions!


Female Founders: Meet The Women Behind JJ Media
Join the UMass PR Club on Tuesday, April 19 at 6 p.m. in the Journalism Hub (fourth floor of ILC) to hear from the founders of JJ Media, Janelle Driscoll and Jojo Gutfarb. Janelle and Jojo will be discussing their experience as female business owners. JJ Media is a Boston-based public relations agency focusing on media, marketing and management, particularly for sport-related clientele. The co-founders bring a combined 20 years of industry experience with clients ranging from the Bill Belichick Foundation and professional athletes to Boston’s best celebrity hair stylists. They will be discussing the obstacles and triumphs from their experiences as founders. There will be a Q&A portion at the end so come with any questions. We can’t wait to see you there! 
Please feel free to reach out to umassprclub@gmail.com or agigandet@umass.edu with any questions. Please RSVP to the meeting via Eventbrite.

Isenberg Undergraduate Consulting Group
The Isenberg Undergraduate Consulting Group is the premier strategy consulting organization within the University of Massachusetts, operated entirely by students. Since the Group was founded in 2015, IUCG has tackled strategy and operations challenges for over 20 Fortune 500, multi-billion-dollar, startup, and nonprofit clients. The Group leverages its expertise to provide impactful recommendations for its clients and an engaging experience for its members, empowering IUCG’ers with a robust, generalist problem-solving toolkit that is applicable for professions ranging from consulting to high finance, to software engineering – and anything in between! Email isenbergucg@umass.edu or reach out to any IUCG’er with additional questions! Also, follow us on LinkedIn to keep up to date with upcoming events and other announcements! Apply here! For more information, click here.

Youth Marketing Connection
YMC is looking for outgoing, confident, technology-savvy and well-connected students to join the first-ever Samsung College Program team this year. You do not have to be a current Samsung user to be eligible for this role! There are two different opportunities available for the Samsung College Program at University of Massachusetts - Amherst. Ambassador: Creates weekly Instagram Story content, Creates monthly Instagram in-feed posts (static image or Reels), Executes 2 on-campus events with your fellow campus ambassador, Hosts ongoing group visits, Weekly commitment approx 8-10 hrs/wk. Influencer: Creates weekly Instagram Story content, Creates biweekly Instagram in-feed posts or TikToks, Weekly commitment ranges between 1 - 2 hrs/wk. Both positions will get hooked up with the latest and greatest Samsung product as well as receive a generous cash stipend. You can read more details about each role and apply here. If you have any questions about the position or application process, please reach out to samsungprogram@youthmarketing.com.

Temasek Information Sessions

Women Fireside Chat (Click here for more information): We will be hosting the event on 19 May 2022, 6:00pm - 7:00pm ET. Our speakers will be offering their perspectives and insights as female leaders in finance. They will be sharing with you on the skills necessary to succeed in the industry and in having a fulfilling career with Temasek. This event will be held online and is open to all female students currently matriculated in US universities across all years of study.

STEM Fireside Chat (Click here for more information): We will be hosting the event on 26 May 2022, 6:00pm - 7:00pm ET. Our speakers will be sharing their experiences on how they navigated their career paths in finance as individuals from STEM backgrounds, why they chose to pursue Finance instead of following their degrees, and how their STEM background helps in their current role as an investor. This event will be held online and is open to all STEM students currently matriculated in US universities across all years of study. Please feel free to contact me with any questions you may have at sohum_shah@berkeley.edu.

Tips for Interviews

By: Sarah Henderson

If you’re like me, interviews make you very nervous, and might just be the most dreadful part of the hiring process. First, remember that it’s perfectly normal to feel nervous—most people do. Plus, it means that you care about the position you’re interviewing for. But to make the whole process a little easier, here are some tips for before, during, and after an interview!

Before the interview:

Before your interview begins, it is important to give yourself enough time to prepare. Researching the company, such as what products or services they provide, the history of their founding, and their values, is helpful for preparing possible questions to ask and showing the interviewer that you have knowledge about the company. I also find it helpful to review common interview questions and tailor them to fit the position I am applying for (i.e. “Why do you want to work here?” or “What makes you a good fit for this position?”). If you think you need more help, you can make an appointment with a Career Coach at the Chase Career Center to perfect your responses, or go through some sample questions with a friend. I also like to refamiliarize myself with the details of the position to make sure I don’t ask any questions that have already been answered in the job description and to know what to expect overall. Doing this makes me feel much more secure and prepared, but if I am still nervous about the interview, I do my best to stay calm and clear my mind. Sometimes I find that it’s best to do something relaxing, like listening to music and taking a walk. In the few minutes right before the interview begins, I usually review my notes but definitely avoid frantically doing more research. Also, don’t forget to choose an outfit in advance that will make you feel confident and professional, and make sure you have the correct time and location for the interview.

During the interview:

During the interview, I always try to make sure to stay present. Sometimes, my nerves will distract me or I will overthink my answers, which prevents me from listening to the interviewer and focusing on answering the current question. Be confident in your answers as well—sometimes if an interviewer asks you a difficult question, the most important thing they are looking for is how you answer it, not what your actual answer is. One of the best methods for answering interview questions, mainly behavioral questions, is the STAR method. Also, remember that interviews can be conversational; they don’t have to be intimidating or something to be afraid of. Towards the end of the interview when you are asked if you have any questions, be sure to ask a few! It shows that you are interested in learning more about the position. To ensure that your questions are unique and interesting, prepare a few beforehand that you may already be wondering about, and ask any questions that come up during the interview. Not only will this impress the interviewer, but it will help you decide if you want the position!

After the interview:

First and foremost, give yourself a reward! When I know that after an interview I’m going to be able to do something I enjoy, it can be very motivating and it gives me something to look forward to. You deserve to relax after a possibly-stressful interview. Another thing I like to do is take note of what I did well during the interview and what I think I should improve on, since I’m still trying to improve my own interview skills. Don’t dwell on it if it doesn't go as well as you had hoped or be discouraged from trying again; if nothing else, it was an opportunity to practice and know how to improve in the future. Doing this, along with noting certain questions that you want to prepare a better answer for next time, will also help if you get another interview at the same company. Many people also send thank you notes after interviews as another way to stand out!

Most importantly, remember to be yourself, and don’t be afraid to brag a little and show off your skills! Good luck to everyone with your interviews in the future, you’ll be amazing!