Self Deception in Financial Perception: The Illusion of Wealth

Abstract

This study explores self-deception in financial perception, specifically the illusion of being wealthier than one’s actual economic condition among college students in Pakistan. Exploratory qualitative research design was adopted. Non- probability sampling technique was adopted. Purposive sampling was preferred to collect information rich data. Semi-structured interviews were used as data collection tool with students from diverse socioeconomic backgrounds. Thematic analysis adapted. The findings reveal that perceived wealth is influenced by social comparison, cultural expectations, debt-financed consumption, and social media exposure rather than objective financial indicators. The study highlights the implications of self-deception for financial decision-making, savings behavior, and economic well-being. Financial misperception can explicitly affect academic engagement and repercussions. The research contributes to behavioral economics literature by providing context-specific perspectives from a developing economy.