What is emotional spending? Plus, tips for managing it

When was the last time you bought something just because you had a rough day? Or, splurged on a new wardrobe because you were bored? Have you ever felt pressured to buy the latest trending water bottle simply because all of your friends have it? All of those situations are examples of emotional spending, and it can derail even the best budget! Keep reading to learn more about what emotional spending is and how you can keep it in check. 

Emotional spending, explained 

Emotional spending is when we buy things based on how we feel rather than what we actually need. It’s when we make impulsive purchases instead of planning what we buy in advance. While it’s totally normal — 69% of Americans admit to emotional spending — it can add up really fast if we’re not careful. The good news is that there are ways to recognize this and take control of your spending habits. 

What causes emotional spending

There are a few emotions that can trigger emotional spending for some of us. Here are some of the most common:

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• Stress. If you’re feeling overwhelmed, you decide a little “retail therapy” will make you feel better.

• Boredom. You are looking for something to do, so you turn to online shopping for quick entertainment.

• Happiness. You decide to celebrate a big win with a “treat yourself” moment.

• Peer pressure. Your friends get the latest accessory, device, clothing item, or something else, and you want to keep up.

• Unmet needs. You buy new clothes to feel more confident, trendy items to feel included, or expensive stuff to feel more successful.

But, emotional spending isn’t just about how we feel and what we do. Companies know how it works, and sometimes they use ads, influencers, and FOMO (fear of missing out) to make emotional spending even more tempting.

8 signs you might be an emotional spender

Are you wondering if emotional spending is something you’re dealing with? You might be an emotional spender if you…

1. Buy random things impulsively without thinking through if you really need it.

2. Regret the purchases you make later on or feel guilty about it.

3. Spend money as a way to cheer yourself up when you’re feeling down.

4. Have a closet full of stuff that you rarely use and can’t even remember buying.

5. Run out of money before you get your next allowance or paycheck.

6. Feel a temporary high or excitement when shopping, but then a sense of disappointment.

7. Justify your unnecessary purchases with qualifiers like: “I deserve this” or “It was on sale.”

8. Hide purchases from your family or avoid checking your bank balance because you don’t want to see how much you spent.

If any of these sound familiar, don’t worry; you’re not alone. Recognizing these habits is the first step toward better control over your spending.

How to manage emotional spending 

If you feel like you might be spending money based on emotions instead of actual needs, here are some ways to manage your emotional spending — and get your budget back on track.

Take a breather before you buy

When you’re at the store about to make an unplanned purchase, ask yourself: “Do I really need this? Or am I just feeling a certain way?” You can also challenge yourself to wait a day and see if you still want the item tomorrow. Learning how to delay gratification can also help you make smarter spending choices and avoid impulse buys. 

Set aside a “fun money” budget

When you get your allowance or paycheck from work, set aside a small amount for guilt-free spending while making sure your savings and essentials come first. Apps like Greenlight make it easy to track spending and make better money choices.

Unfollow temptations

Social media can be one big trigger for those of us who struggle with emotional spending. If certain influencers or ads make you want to buy things you don’t need, consider muting or unfollowing accounts that fuel impulse spending.

Shop with purpose

Know what you’re shopping for before you even leave your house and make a list (you can do this in your head or go old school with pen and paper!). If it’s not on the list, then don’t buy it on this trip.

Get an accountability partner

Take a friend or family member with you when you know you might be tempted to overspend. Having someone there to keep you in check can make it easier to stick to your budget and think twice before buying something you don’t really need.

Emotional spending is very common, and being aware of it is the first step to managing it. The tips in this article will help you recognize when it’s happening and go back to the smart money habits you’re already building. Then, you can take control of your finances without giving up the things you love.

Manage your money and safety. Ask your parents about Greenlight’s money and safety app for families. Invite them to sign up for Greenlight one month, risk-free.† 

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