What Is Impulse Spending?
Impulse spending is when you make an unplanned purchase, often influenced by emotions, limited-time promotions, or flashy marketing. Unlike planned purchases, like your weekly groceries or a long‑researched TV upgrade, impulse buys are typically quick decisions made on the spot.
Researchers estimate that impulse spending accounts for a large share of retail activity. Some studies place it around 40% – 80% of all consumer purchases in certain contexts.
Some common examples:
- Adding extra gifts to your cart during a flash sale “because it’s on sale”
- Buying something online at midnight after scrolling social media
- Grabbing checkout‑lane items you didn’t intend to buy
Impulse purchases aren’t always bad, but too many can derail your budget or leave you regretting how much you’ve spent.
Why Do We Fall for Sales? The Psychology Behind Impulse Buys
Retailers are experts at making you feel like you’re getting a deal you can’t refuse. Understanding these tactics can help you pause before you spend.
- FOMO (Fear of Missing Out): “Ends tonight!” or “Last chance!” messaging triggers urgency so you act fast without thinking.
- Scarcity Marketing: Seeing “Only 2 left” or “limited quantities” convinces your brain you’ll miss out if you don’t buy immediately.
- Emotional Shopping: Stress, boredom, or even excitement can push us to shop for a quick pick‑me‑up. It’s called “retail therapy” for a reason.
- Dopamine Hits: The brain releases feel‑good chemicals when we anticipate a purchase, which makes it harder to resist clicking “buy now.”
- Bundling and Free Shipping Thresholds: “Spend $10 more to get free shipping” nudges you to add items you didn’t need just to hit a minimum.
- Social Influence and Peer Pressure: Shopping with friends or seeing what others buy can raise the pressure to spend. The more others around you are engaged, the more your impulse to “join in” increases.
- “Pain of Paying” Theory: Behavioral economics teaches that the pain or discomfort we feel when paying affects whether we make a purchase. If the “pain” is delayed (like on a credit card or through a buy now, pay later service), we may feel less hesitation at the moment of purchase.
- Low Self-Control and Targeted Ads: Some studies show that people with lower self-control are more likely to be influenced by targeted ads and impulsive behavior.
Retailers count on these psychological triggers to drive sales. But once you recognize them, you can start to take back control.
Red Flags You’re About to Make an Impulse Buy
Before you hit “checkout,” watch for these warning signs:
- You didn’t plan to buy it
- It’s a “today only” sale or limited-time promotion
- You’re feeling stressed, bored, or emotional
- It’s a duplicate of something you already own
- You’re justifying the purchase because of the discount
If one or more of these apply, consider waiting 24 hours before deciding. Often, the urge to buy fades, and you’ll save money.
7 Smart Ways to Curb Impulse Spending (and Still Enjoy the Season)
You don’t have to cut out all the fun. These simple strategies can help you stay in control:
1. Pause Before You Purchase
Use the 24‑hour rule. Add items to your cart, but wait a day before buying. If you still want it, it’s probably worth it.
2. Set a Budget and Stick to It
Track what’s coming in and going out. Apps like Goodbudget, EveryDollar, or AbbyBank’s Online Banking tools make it easy to stay on top of your spending.
3. Unsubscribe from Retail Emails
Retailers know email is a powerful trigger. Reduce temptation by opting out, or funnel promotions into a “Deals” folder to check only when you’re ready to shop.
4. Shop with a List
Like grocery shopping, lists keep you focused. Write down what you need before you go online or to the store.
5. Track Your Triggers
Are you more likely to shop late at night? When you’re tired or stressed? Knowing your patterns can help you avoid risky times.
6. Choose Experiences Over Stuff
Instead of another gadget or sweater, consider gifting experiences, like tickets to a local event, a weekend getaway in Wisconsin, or a cooking class. Experiences create memories, not clutter.
7. Make Saving as Satisfying as Spending
Open a separate savings account for holiday gifts or experiences. Watching your “fun fund” grow can be as rewarding as a purchase, and it keeps you from tapping into your main account.
Gift Memories, Not Just Things
This season, try gifting memories instead of more “stuff.” In Wisconsin, there are endless options. Looking for inspiration? Here are a few ideas close to home:
- A night at a cozy cabin in Wausau
- A local food tour in Medford
- Skiing at Granite Peak
- An escape room experience in Weston
Setting up a dedicated savings account at AbbyBank for these experiences can make budgeting easier and ensure you’re spending with intention, not impulse.
How AbbyBank Can Help You Stay in Control
As your trusted local bank, AbbyBank offers tools and support to help you shop smarter:
- Automatic Transfers to Savings: Build your holiday or experience fund with ease.
- Budgeting and Alerts: Track your spending right from your phone.
- Responsible Credit Options: AbbyBank credit cards with fraud protection and benefits.
- Friendly Local Bankers: Visit us in Abbotsford, Appleton, Gresham, Medford, Shawano, Wausau, Weston, or Withee for personalized advice.
Whether you’re planning your budget, opening a new savings account, or exploring credit options, we’re here to help you feel confident about your money, not regretful.
Spending Should Feel Good, Not Regretful
Impulse shopping happens to everyone, especially during the holiday rush. But by understanding your triggers and taking small steps to control your spending, you can enjoy the season without financial stress.
When you’re ready to take the next step, whether that’s opening a savings account for experiences or learning more about budgeting, AbbyBank is here to support you. Stop by your local AbbyBank branch or explore our online tools to start building better financial habits today.