Every time you click on a targeted ad, reach for your wallet, or grab something that catches your eye at the supermarket checkout, you’re making an impulse purchase.
And it seems that very few of us have good impulse control.
A recent survey by personal finance site BadCredit.org found that 90% of consumers between the ages of 18 and 43 admitted to making impulse purchases.
Impulse buys are purchases made in a moment of impulse, something that is suddenly and unplanned off the shopping list.
In the past, an impulse buy meant something you found on a shelf or in a checkout aisle at the mall. Now, it often refers to a product you purchase after clicking a link in a customized pop-up ad or Instagram post.
“Impulse buying has never been easier,” said Dan Egan, director of behavioral finance at financial advisory firm Betterment. “Now, impulse purchases can often be made from the comfort of your couch, on your phone.”
Impulse buying? Take your emotional pulse
Badcredit.org surveyed 1,002 Gen Z and Millennials to find out the top reasons they make impulse purchases. Here are the results:
- 41% said they make impulse purchases when they feel down or depressed.
- 36% of people say they make impulse purchases when they’re stressed
- 33% make impulse purchases while on vacation
- 25% make impulse purchases after seeing a social media post
Some young consumers spoke of “revenge shopping” after fighting with a loved one, while others admitted to “desperation shopping” driven by feelings of desperation. The survey, published in late June,
“I really think a lot of impulse buying is emotional,” says Matt Schultz, chief credit analyst at personal finance site LendingTree. “We’ve been talking about retail therapy for years, where people go shopping to feel better or to celebrate a big win in their life.”
The upcoming holiday season brings new challenges for impulse shoppers, who must resist the urge to spend money on themselves while also sticking to gift budgets for loved ones.
Impulse buying is a consumer habit at least as old as the candy racks at supermarket checkouts. (Does anyone put candy on their shopping list?)
Social Media Influencers Are Happy to Spend Your Money
But these days, much of the impulse-buying world has moved online.
In a report last September, personal finance site Bankrate estimated that American consumers spent $71 billion on social media-inspired impulse purchases in the previous 12 months.
Nearly half of social media users say they have made an impulse purchase, with the average impulse buyer spending $754. Most buyers have regretted at least one purchase.
Influencers on Instagram and TikTok often breathlessly promote products with handy links to Amazon and other retailers.
Earlier this year, social media hype led consumers to pay hundreds of dollars on eBay for a $2.99 ​​Trader Joe’s tote bag after a sudden wave of impulse buying led to stores emptying out customers.
When beverage container manufacturer Stanley released limited edition colored cups at Target on New Year’s Eve, they sold out in stores nationwide. Social media played a key role here, too: The hashtag #Stanleycup has been viewed more than 6 billion times on TikTok.
In Facebook and Reddit groups dedicated to Walmart, Target and other popular brands, a single post can spark a buying spree for popular items, and Disney fans will travel to the parks and stand in line for hours just to buy a single souvenir.
According to market research firm eMarketer, social media shopping is growing every year.
Are impulse buyers price sensitive?
Some impulse shoppers may be curbing their habits in times of inflation: The average shopper is making fewer impulse purchases in 2023 compared to the past two years, according to an annual survey by mobile app SlickDeals.
Price-conscious shoppers are prone to impulse purchases when offered a good deal, and this year consumers have shown renewed interest in “spaving,” where retailers offer discounts to customers who want to add one more item to their cart.
“We’re seeing more enticing, better deals enticing shoppers to buy something that wasn’t on their list,” said Jill Blanchard, president of Intelligence Insights at sales and marketing firm Advantage Solutions.
If you want to curb impulse spending, here are some tips from experts.
Wait before you buy
If you feel like you might make an impulse purchase, step away from your laptop and wait a day or two before making the purchase.
“Do yourself a favor and slow down,” says Erica Sandberg, a personal finance expert at BadCredit.org. “Turn your mood swings back into neutral. If you’re feeling angry, depressed, vengeful, or stressed, resolve to put away your credit cards. Instead, take a walk, talk to a friend, or watch a TV show.”
Whenever he’s thinking about making an impulse purchase, Betterment’s Egan puts the item on his wish list. Then he waits a week. If he still wants the item, he buys it.
Perhaps 10 percent of Egan’s impulsive ideas survive the cooling off period, he says.
Buy two and get one half off?“Saving” discounts will ruin your finances
Do not store credit card details
Experts say having your card number saved on retail websites you frequently visit makes it all too easy to make impulse purchases.
“Even the simple act of finding your wallet and entering your card number” can give you time to reconsider a purchase, says Ted Rothman, senior industry analyst at Bankrate.
Create a budget
You can set a monthly spending limit for impulse purchases.
“If you calculate it in advance, it’s a planned purchase, not an impulse buy,” Rothman said.
Set a budget for each trip to the supermarket or big box store. Try to spend less than your budget.
“If you budget $100 at Target and walk out having only spent $55, that’s a win,” Schultz said.
Don’t click on that ad
Avoid clicking on online ads or retailer offers: targeted advertising is the epitome of impulse buying, and consumer experts say you’re usually better off using lists to find the products yourself.
Know the difference between impulse buying and “pantry loading”
Pantry loading means stocking up on items beyond your immediate needs, often at a discount. It’s not the same as impulse buying.
“If you’re stocking your pantry with products that your family will use,” the purchase becomes more justifiable, Blanchard said.
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