Financially Irresponsible

Definition

Financially irresponsible refers to the act of making poor financial decisions or failing to manage money effectively, often resulting in negative consequences such as debt or financial instability.

Analogy

Imagine a student who spends all their allowance on unnecessary items and doesn't save any money for important things like school supplies. This student is financially irresponsible and may face difficulties later on when they need those essential items.

Related terms

Impulse Buying: Making unplanned purchases without considering the long-term impact on finances.

Overspending: Spending more money than one can afford or budget for.

Credit Card Debt: Accumulating debt by using credit cards and not paying off the balance in full each month.