Emotional Spending

You’ve probably heard of emotional eating – when we use food as a way to cope with how we’re feeling. But what about the other behaviours people may rely on as a way to feel better when they’re struggling with their emotions?

Emotional shopping and spending are surprisingly common, yet not that well understood. In this guide, we explore spending habits and why we may turn to shopping for comfort, as well as what can be done to improve on behaviours and maximise wellbeing in healthier ways.

Who’s more likely to turn to emotional spending?

Data suggests that age plays a part. The 2023 Commerce Report interviewed 16-64-year-olds across multiple markets and found that UK millennials (born between 1981 and 1996) were 27% more likely than the average impulse buyer to make purchases to cope with stress.

The same report found that millennials and Gen Z (born between 1997 and 2012) were 51% more likely than the average UK consumer to make impulse purchases online. Social media also plays a part, with these generations 83% more likely to impulse buy after seeing recommendations from people they follow, such as celebrities or influencers. They’re also more likely to click “buy” on social media ads.

Research has shown a correlation between shopping compulsively and characteristics such as being female, being younger, anxious attachment, and avoidant attachment. However, correlation isn’t the same as causation – further research is needed before conclusions can be made.

What can affect spending habits?

• The economic climate. Rising costs lead to a reduction in spending on non-essential items.
• The seasons. Cold weather means people are more likely to stay at home and shop from the comfort of their sofa, instead of heading to brick-and-mortar stores. For example, in March 2024 retail spending grew 0.7%, compared to 1.4% in February 2024, reflecting March’s wet weather. In January, people are more likely to cut back after the festive season.
• Accessibility. For some people it’s much easier to order online than it is to shop in person. Online shopping means a range of convenient features, like next-day delivery, are at our fingertips. Likewise, someone who lives close to a high street or retail park may be more likely to go out when they need something.
• Research. People want to make sure they’re choosing the best option for them before they spend their money. Data by Google showed that 74% of respondents searched online before buying, with searches for “which is best” and “where to buy” increasing over time, and around 33% said they spent time researching products for fun.
• The amount of choice available. People are less likely to have brand loyalty when there are so many options available – 47% of Brits had tried a new brand, retailer or product when Google conducted their research.

Why do people turn to shopping for comfort?

• It creates a sense of control. If you’re experiencing circumstances you can’t change, you may focus on things you can change. And while this can sometimes be positive, such as channelling your energy into exercise, it can also lead to riskier behaviours, like compulsive spending. Ironically, this can result in shopping habits becoming uncontrollable.
• It can improve your mood. The act of buying something, or even just browsing, can release dopamine. Dopamine is a neurotransmitter, which means it sends messages between nerve cells, and it has a significant impact on how we feel pleasure. Once your brain begins to associate feeling good with shopping, it’ll want to do more of it in order to keep the good feelings going.
• It can distract you from uncomfortable feelings, like anxiety. If you’re shopping in person the displays, lighting, signs and music can draw your attention, while if you’re shopping online, the different sites and pages can do the same. If you buy something, you begin to associate these environments with a positive result.

Dealing with emotional spending

Once you’ve identified emotional spending you can take steps to change your behaviour and create more healthy, positive habits around shopping. Here are some things you can try.

Think about why you turn to shopping

Is something stressful happening in your life? Does shopping help you experience positive feelings? You might not link the two together but, as we mentioned earlier, shopping can be a way to distract from more uncomfortable emotions. Knowing what these are means you’re one step closer to dealing with them head on – awareness is half the battle.

Reach out for help

Open up to a trusted friend or family member about your emotional spending. Simply having someone there to listen can lift a weight from your shoulders. You can also reach out for help from a therapist, who’ll work with you to identify the thoughts, feelings and behaviours that lead you to shop, then teach you how to regulate your emotions in a healthier way.

Make it harder to shop

The digital world has made it easier than ever for us to get what we want or need in mere seconds. 35.8% of consumers make purchases online and in store equally, while 28.3% shop online exclusively. Millennials are more likely to shop online than other generations, with 38% saying they mostly make purchases online.

While online shopping is convenient when you’re busy, it can also make it more tempting to shop spontaneously, especially when you’re feeling emotional. Luckily there are ways you can make it harder for yourself:

• Unsubscribe from newsletters and marketing emails. Who hasn’t been tempted by an unexpected discount appearing in their inbox? Unfortunately this can result in you spending money you hadn’t planned to part with, or buying something you don’t need. Unsubscribing removes the opportunity to do this.
• Delete apps from your devices. Not only will you avoid notifications encouraging you to buy something, but navigating to a website gives you more time to consider a purchase.
• Delete your card details from online stores. Entering them every time you plan to buy something will give you more time to think about whether you really want or need it.
• Give yourself a cooling-off period before you buy something. Spotted something you’d like? Wait 24 hours before you go ahead with the purchase. Either you’ll decide you don’t want to after all, or you’ll know it’s something you really want.
• Don’t buy something solely because it’s on sale or there’s a discount code. You’re not saving money if you wouldn’t have bought it at full price.

Plan when you shop

It’s much easier to spend when your shopping trips are spontaneous. When asked what makes them impulse buy:

• 50% of consumers said they were drawn in by discounts and promotions
• 40% said instant gratification
• 19% said in-store advertising
• 17% said brand familiarity
• 9% said external advertising channels

By planning what you need to buy and when, you can avoid unnecessary spending and save time for other things that are important to you. The tips below are tailored to supermarket shopping, but can be applied to other items in many cases.

• Check what you already own before you shop. You might have what you need hidden away at the back of a cupboard.
• Always shop with a list. You’ll be less likely to get distracted by impulse buys.
• Plan your meals in advance. Using a meal plan will save you time deciding what to eat each day and you’re less likely to buy food you won’t eat.
• Use subscription services for items you need to restock regularly. You won’t have to think about it once it’s set up and it also gives you fewer opportunities to browse if you don’t have to go online for every single order.