The Americans say they have failed. So why can't they stop spending so much?

Consumer confidence is in the basement, but consumer spending continues to rise. A financial expert reveals the five main reasons behind disconnection.

Will Cain exposes inflation and housing costs under Biden and Trump

Will Kaine broke the economic record of inflation and housing prices in the administration of Trump and Biden before the mid-term elections.

Some Americans cry poverty with a $1,500 iPhone in one hand and an $8 Starbucks latte in the other. They say groceries aren't affordable, but somehow the restaurants are packed, the airports are busy, and the neighbor just drove into his driveway with a brand new $90,000 SUV.

Apparently, we're one bad economic report from bankruptcy and one Instagram post away from booking another trip to Cabo.

Consumer confidence is in the basement. Apparently, consumer spending didn't get the memo.

US economy hits impressive new record, cheers: 'Good job for all'

In September, the Conference Board's consumer confidence index fell to 81.9. However, it was reported that consumer credit and debit card spending per household increased by 6.2 percent year-over-year.

Consumer confidence is down, but consumer spending is up. (iStock)

This is not economics, stupid. Americans vote based on their personal finances

As a financial advisor, I think the answer is something more powerful than inflation or interest rates. Human psychology.

And here are five reasons our spending habits don't match our financial anxiety.

We are all desperate for a financial audit. It's time to say, "Show me the money!"

1. Keeping up with the Joneses has gone digital

Thirty years ago, you compared your lifestyle to the neighbor who bought a new Cadillac.

Today, you compare yourself to 5,000 people on Instagram. There are even academic degrees on how to become a social media influencer. Neither of them will get a lot of likes by telling you to eat ramen noodles and give up third-row seats for the latest rock concert.

Someone is on vacation in Italy. Someone renovated their kitchen. Someone bought a new Porsche. Face it. Someone will always do better than you. Or so it seems.

You're comparing your everyday financial reality to someone else's highlight reel. Social networks have turned keeping up with the Joneses into keeping up with the Kardashians.

Except the Kardashians can actually afford it.

3 Big Questions to Ask Mom and Dad Before You Make a Major Financial Commitment

2. We have become a country that pays monthly

Remember when people used to save money before buying anything? It is called layway. Almost anything can be financed today.

Skip two years of college debt and give your family a lifetime of wealth

That $1,200 purchase? Just four easy payments of $300. Vacation? Monthly installments. Furniture? Zero down.

We specialize in making expensive things look cheap by breaking them down into smaller payments.

Gen Z works hard, but the economy puts the American Dream out of reach for many

The problem is not necessarily buy now, pay later. Forgetting a few things that you already agreed to pay for later and eventually, it will show up later.

3. There are two different American consumers

Not everyone who spends money is in financial trouble.

Higher-income Americans with substantial investment portfolios have benefited from rising asset prices. Many can easily afford expensive vacations and new cars.

Meanwhile, other households are raising their salaries just to maintain their lifestyles. Some of the cost growth also reflects higher prices for necessities.

The behavior of the economy is not the same with every consumer. When you see your neighbor's new Mercedes Benz, you don't know if he paid cash for 84 months or financed it.

4. If tomorrow looks bad, why not enjoy today?

When people worry about the future, they don't always save more. Sometimes they spend more.

Did you have a terrible week? Amazon celebrates your birthday every day. Stressed about work? Book a holiday. Worried about the economy? Just have a nice meal at a local restaurant.

Retail therapy is a lot more fun than retirement planning. Unfortunately, the joy from that purchase can be gone long before the credit card bill hits.

5. We have confused looking rich with being rich

Instead of accumulating wealth, Americans have become obsessed with displaying wealth. Luxury car designer handbag vacation photos

But here's what I've learned after decades of counseling families. Net worth does not have an Instagram account.

I've met millionaires who drive 10-year-old cars and people who make $250,000 and can't cover a $10,000 emergency. Income is not wealth and spending is definitely not wealth.

why Because I wrote the book. So, before you swear off Starbucks forever, try three simple changes.