It’s common to treat yourself to something sweet when you’re feeling down, or celebrate achievements over dinner. However, little “treats” may be emotional spending in disguise. If you’re frequently feeling guilty for buying things you never use, you may be an emotional spender, and this budget-breaker may be more common than you think.
In a recent study, over 49 percent of Americans have purchased products in an attempt to spark happiness, and 30 percent of those regretted it. With the holidays coming up, stress, family issues, or holiday excitement may heighten your emotions. To curb holiday emotional spending, read our tips below or skip to our infographic.
What Is Emotional Spending?
Emotional spending is when you buy something you may not need to ease your emotions. These emotions could range from stress and sadness to happiness and celebration. Emotional spending can also be categorized as impulse spending — these purchases are in-the-moment decisions to buy something unneeded or out of budget. An example of an impulse purchase may be buying a new set of headphones when you went to the store for coffee creamer.
If you have a tendency of making last-minute emotional purchases, you’re not the only one. As roughly half of consumers admitted to buying products to boost their mood. And, each emotional purchase costs, on average,