Think Before You Spend

Interactive Video

[A man and a woman in a store, looking at the price tag on a set of curtains.]

Narrator: There’s a lot of temptation out there — and at home as well. Online shopping has made impulse buying possible 24 hours a day.

[A hand holding a cell phone making online purchases: a shirt, shoes, and a watch. When the hand selects the items, they disappear from the phone and appear in the grocery cart.]

Have you ever done this? According to a Slickdeals survey in 2023, 43% of people shop on their phone in bed.

[A young man lying in his bed with a cell phone is his hand.]

What do you think are the most common things people buy impulsively?

[Onscreen Text]: What do you think are the most common things people buy impulsively? Select all that apply.

Option 1: jewelry

Option 2: shoes

Option 3: food

Option 4: decor

Option 5: technology

Option 6: clothing

Interestingly, in 2022, PR Newswire reported the top impulse buys for adults were clothing at 35%, food and groceries at 30%, home decor items at 29%, shoes at 28%, and consumer technology gadgets at 27%.

[Pie chart with a computer icon at 27%, a shirt icon at 35%, an apple with a steak icon at 30%, a plant icon at 29%, and a shoe icon at 28%.]

And when young adults start earning income, their first purchase is generally streaming service subscriptions.

[A person holding a tablet with the menu of a streaming service on the screen.]

So, why do you impulse buy? Psychological studies say that humans want to fit in, feel accepted, and generally be happy.

[Woman thinking with 3 icons in her thought bubbles: a dress, a magazine, and a game controller.]

And companies know that and use it to their advantage. They use visual stimuli to catch your attention— flashy retail signs, eye-catching window displays, and appealing packaging.

[A store window with a smartphone, a computer monitor, a laptop, and a notebook computer on display. The signs above the devices say, “Don’t miss out, Bigger is better, The perfect Gift, and Give the Gift that matters!”]

And they use social media to influence your decisions — marketers track your online activities to display things you are interested in; they also use social influencers and celebrities that you may admire to drive up a product’s popularity.

[A man viewing images of nature on his phone when an ad suddenly appears on top of the pictures. The ad says, “Half Price. It’s my home  away from home. Mona Mitchell, Social media influencer.”]

But getting an urge to buy something doesn’t mean you should simply act on it. Don’t be so quick to click! You should consider your choices before you open your wallet!

[A woman sitting on the floor with a laptop on her lap and several packages around her. One package is open with a pair of high-heeled shoes inside.]

Unfortunately there is no magic pill to take to fix impulse buying. But you can start to control your impulses to spend by changing your perspective.

[A man holding a lot of bags with a depressed look on his face.]

Impulse buying is like tunnel vision — you see something you want in the moment and you act. If you widen that perspective to a larger-picture vision, all of a sudden you are aware of more than just that moment.

[An animation with a hand making a purchase and a delivery truck speeds off the screen then on again to deliver the packages to the front of a house. The mailbox then falls open and several letters with the labels: “reminder, overdue, past due,” and “final notice” fall to the ground.]

When you think beyond the moment, you start to become aware of how spending in this moment affects your money situation overall. Stop and think about how this purchase might affect your ability to pay bills, save for something you’re working toward, or overall practicality.

[A woman thinking while sitting at her desk. There is a laptop computer in front of her. One hand is on her chin and she has 3 $100 dollar bills in her other hand.]

Before you buy anything, ask yourself: 

• Can I live without this?
• Do I really need this?
• What are the pros and cons of buying this?
• What could I use the money for later if I don’t spend it now?

[An illustrated pc computer with a tag that says, “$0 down and $100 per month.”]

A good practice is to make yourself wait at least 24 hours before pulling out a card or cash to buy something that grabs your attention. Impulses normally pass after a day or two.

[An animated clock with the hour and minute hand spinning around, starting at 9:00 and ending at 9:00.]

It takes some discipline and a lot of self-awareness, but the key is to reflect and ask yourself: Is this really worth the other money tradeoffs I’m making?

[A man with a backpack browsing at a clothing store.]