How to avoid peer pressure spending while living in a hostel

Tips on how to be prevent yourself from falling into the trap of spending for impressing

Arsh Choudhary

6/7/20254 min read

man covering face with both hands while sitting on bench
man covering face with both hands while sitting on bench

Living in a hostel can be one of the most exciting and memorable parts of student life. From late-night food runs to group outings and spontaneous celebrations, it is a space full of laughter, freedom, and friendships. But along with the fun comes a quiet, tricky challenge—peer pressure spending.

You might not even notice it at first. One minute you are trying to stick to your budget, and the next you are ordering from that expensive café “just because everyone else is.” It is easy to get swept up in group plans, social trends, and the subtle fear of missing out. But the truth is: if you are not careful, peer pressure can drain your wallet faster than you think.

So, how do you enjoy hostel life without constantly overspending just to fit in? Let us understand what does peer pressure spending look like. Peer pressure does not always mean someone is forcing you to spend. Often, it is much more subtle. For example, it may come in the form of feeling guilty for skipping a group dinner because you are low on funds or buying trendy clothes just to match your roommates or pitching in for group gifts or outings you cannot afford or saying “yes” to weekend trips or orders out of fear of missing out

Sound familiar? You are not alone. Most students go through this at some point. The key is learning to recognize it and manage it. Let me share some tips from my experience:

1. Know your limits and stick to them

Before anything else, get clear on your own budget. How much can you realistically spend on food, fun, travel, etc., each month? Break it down into food/treats: ₹____ , entertainment: ₹____, travel: ₹____, emergency/savings: ₹____.Once you know your limits, it is easier to make decisions with confidence. Think of it like this: your budget is not a restriction. It is a tool to protect your peace. You may wish to use a budgeting app to track your spending and stay mindful.

2. It is okay to say “No”

Saying “no” does not mean you are boring or antisocial. It just means you are prioritizing what matters to you. If your friends are planning something expensive and you genuinely cannot afford it, try saying “I’ll join you next time, I’m saving this week”, or “You guys go ahead, I’ve already hit my spending limit for the month.” Or “Let’s plan something low-cost next time?”. You would be surprised how many people will actually respect your honesty and may even feel relieved that someone finally said it.

3. Find like-minded friends

Not all peer groups are the same. While some may pressure you to keep up, others understand that everyone has different financial situations. Try surrounding yourself with people who do not judge you for skipping outings, are open to budget-friendly alternatives and understand the value of saving. These friendships not only help you stay true to yourself but also make hostel life healthier and more balanced.

4. Suggest alternatives

You do not have to isolate yourself just to save money. Instead, become the friend who comes up with smart, low-cost plans. You may make suggestions like hostel movie night with snacks or group cook-together instead of eating out or evening walks, games, or study hangouts or sharing a budget-friendly subscription (like Spotify or Netflix). People often follow the planner, so if you suggest something fun and affordable, others will likely go along.

5. Avoid competing with appearances

In hostel life, you will meet all kinds of people. Some will have more money to spend than others. You might see someone buying branded shoes, ordering takeout every night, or constantly updating their wardrobe. And while it is totally fine for them to spend their money how they want, it does not mean you need to match their lifestyle. Remind yourself that everyone’s financial background is different and that real friendships don’t depend on what you wear or spend. Being smart with money will benefit you in the long run. Do not let Instagram or peer comparisons push you into unnecessary expenses. Live within your means and with confidence.

6. Train yourself to pause before you spend

Peer pressure spending often happens in the moment. That instant “yes” to food delivery or an impulse buy at the mall. One simple trick is to pause for 10–15 seconds and ask “Do I really want this, or am I just going along with the group?”, “Will I regret this when I check my wallet later?”, “Is there a cheaper or smarter option?”. These tiny pauses can help you avoid emotional spending and stay grounded.

7. Talk about money openly

Money is often a hush-hush topic among students. But opening up (when you feel safe) can be surprisingly helpful. Try chatting with your closest friends about budgeting, ways to save, free or cheap hangout ideas and the pressure to keep up with spending. Believe me, you will likely find that many others feel the same way and that they were just waiting for someone to bring it up.

8. Make your own goals and stick to them

Saving for something specific can help you stay motivated when saying “no” to peer pressure. Whether it’s a new phone, an emergency fund, a trip you want to take or gifting your family something meaningful, having a goal makes the sacrifices worth it. Each time you skip an unnecessary expense, you are saying yes to your own priorities.

To conclude, I would re-iterate that hostel life is about finding balance. Yes, it is okay to enjoy spontaneous fun, to treat yourself, and to celebrate with friends, but not at the cost of your peace of mind or financial stability. Avoiding peer pressure spending does not mean isolating yourself Rather, it means learning how to spend with intention, not out of obligation.

Always remember you do not need to prove anything to anyone. The smartest person in the room is not always the one who spends the most. It is often the one who knows when to stop. So go ahead, enjoy your hostel days, have your share of fun, and stay true to your goals. Your future self will thank you.