Over a third of Britons (36%) admit that appearances matter greatly and judge people based on what they wear, leading many of us to feel under pressure to overindulge in expensive purchases. We want our friends to think that we have a comfortable lifestyle, and the UK credit crisis does not seem to be a deterrent to be a deterrent to living beyond your means.

Recent research shows that when we meet new people, we judge their financial worth based on certain factors such as their jewellery or choice of clothing. According to the study, 34% of Britons spend more money in order to impress someone whom they perceive to be wealthy.

According to the study, there are five wealth indicators:

• Clothing – More than a third (34%) of Britons think this reveals much about your bank balance.
• Jewellery –20% of Britons will take the type of jewellery you wear as an indication of how wealthy you are.
• Watches– 15% of Britons believe that having a certain type of watch indicates wealth.
• Shoes– 14% of Britons believe that the person’s shoes reveals a lot about their financial status.
• Haircut– 11% of Britons (1 in 10), will think more highly of you if you have a good haircut.

This research tries to understand how we finance our lifestyles, and made the startling discovery that the desire to own the latest gadgets will result with 1 in 10 (11%) of us overspending. Looking good in front of friends is cited as one of the other big motivators, with dining at expensive restaurants and owning tailored suits adding to debt levels.

Having wealthy peers may not be that beneficial for the third of Britons who admit to jealousy when among them. A smaller number, 5% of Britons, are ‘jealous’ or ‘nervous’ in front of people whom appear to be wealthier. These Britons may exaggerate their own experiences to impress others.

How age and gender affects us

Men may be more eager to spend vast sums of money to appear ‘well-off’ to their peers. Many of these men – about 18% – are tempted to get into debt for their cars.

Many women feel ‘self-conscious’ in front of wealthier peers (15%), more so than men and they may feel more tempted to spend money on a haircut that will help them to appear wealthy.

Young people in the 18- to 24-year-old category (66%) are more likely to judge people based on what they wear. Over a quarter of 55- to 64-year-olds (28%) do the same.

Age seems to bring financial wisdom, as younger people are more prone to splurging on fancy goods to ‘keep up’ with their wealthier friends or family members. However, there is a vast difference between the 18- to 24-year-old group and the 65+ age group. Only 36% of the 65+ group admit to spending more to impress others, while 66% of the former group overspends.

Immoral lending practices are getting the blame for the current mortgage crisis that is affecting the international financial system. The Archbishop of Wales spoke at a celebration that led up the Easter weekend, and he noted, “What’s immoral is encouraging people to borrow more money than they can reasonably afford. They are the first people to go to the wall. There is something wrong about a system that allows that to happen.”

The ‘credit crunch’ gives particular resonance to his words, as there are rising levels of defaults around the globe. The US sub-prime mortgage sector got a knock after too many borrowers received mortgages that they can’t afford. This sub-prime scandal is affecting the global economy, and a prime example of this is the Northern Rock banking problems. The UK got its own batch of problems in the form of the mortgage crisis with lenders who are tightening up their lending criteria. They are also demanding a bigger deposit from first-time borrowers.

Experts are worrying over a possible recession in the United States. This would spell disaster here. The International Monetary Fund’s World Economic Outlook reports that the US economy is nearing a possible recession. This document is still in draft stage, but it is an influential report.

The Archbishop reckons that this economic uncertainty may prompt people to ask ‘eternal questions’. He said, “It’s like when people sometimes are faced with the prospect of dying through a fatal disease and you just realise you’ve been worrying about 1,001 things. We put our trust in all kinds of things except the things that matter.”

Another strong voice echoed the Archbishop’s concerns. David Rosser, who is the director of CBI (Confederation of British Industry) Wales, says that lenders should make sure they only help people who can repay the debt.

“The Archbishop deals with this in terms of morals. To my perspective this is good business sense, but it seems many lenders have forgotten that. I rather suspect that we will be seeing a return to these sound principles in the future.”

Mr. Rosser made a good observation: people should be more responsible with their finances, and not borrow more than they can afford. He tries to use his three credit cards responsibly. “…if I used them to the limit it would be a shocking debt, but I don’t. Individuals have a duty as well.”

His views may seem severe, and this is not the first time he brands one of modern life’s facets as ‘immoral’. His 2007 Christmas message condemned today’s workplace for the pressures it places on family life.