Thank you for all the support here on psychcentral! Payne, you are indeed wise

and thank you, hamster-bamster for your reassurance that I am not making a huge fuss over nothing. This issue has really affected me as the last thing I want to accept is that my younger sister is capable of manipulating and taking advantage of my parents to such an extent. What's more - to her, it's just a way of getting what she wants. Earlier this year, I witnessed her gloating after finally getting my mother to cave in and extend her curfew. I would honestly expect this behavior only from someone still in their teens, and even then, it would have to be a very spoiled teenager!
As her older sister, I've tried multiple times to help her find her way. I fear that she does not hold much respect for me or my advice as she has a tendency of minimizing my achievements and scoffs at any serious topic that I try to discuss with her. To her, I am just someone old (we are 2 years apart) who is doing nothing worthy of her interest. From what I have read, this seems to point towards a narcissistic personality but is probably more a sign of immaturity in my sister's case.
Our family is definitely comfortable enough that money can be sacrificed for other gains, and my parents have always been extremely generous in this area as they believe that financial issues shouldn't stop us from pursuing our goals. Unfortunately, I feel that they have been too lenient in this area to the point where my sister takes things for granted and assumes that they will always be there to bail her out. I feel sorry for my mother, who is often cast as the villain in my sister's book. She has no choice but to enforce restrictions as it has been clear that my sister will shirk any responsibilities if not given boundaries.
I can only hope that she will grow up soon and develop a bit of compassion for others. Ultimately, that is probably the only true solution to ensuring that there will be no further conflicts down the road...