Why We Enjoy Spending Money

Let’s start with a basic question; who doesn’t enjoy spending money? Not on bills, of course, but the procurements of gifts, experiences and treats that can make everyday life far more enjoyable.

According to data accrued by Suits Me, who provide accessible prepaid debit cards to customers, the average UK consumer spends £132 on payday alone, with this equating to around 21% of the median household disposable income being spent in a single day. 

This may be a concern for some, and in this post, we’ll ask why we like to spend money while considering the individual triggers that you need to be aware of.

Why Do We Usually Spend Money?

We’ll discuss the key triggers for spending below, but to understand them further we’ll need to consider how people like to spend their money.

The data garnered by Suits Me showed that the most popular payday treats include a takeaway, with 41% of respondents revealing this to be their favourite impulse purchases. Drinks and a meal out (37% each) are the next most popular purchases, with these emotionally driven buys that are designed to make us feel better and comforted.

This is a key consideration, as we find that most leisure buys and disposable income spends are driven by an underlying emotion, whether this is a fear of missing out (FOMO) or a simple sense of aspiration.

FOMO is a particularly strong cause of spending, and one that’s often leveraged by brands through limited time promotions. Creating exclusive promotions based on a certain spend are also designed with this emotion in mind, with a view to making customers spend more in real-time.

What are the Individual Psychological Triggers to Keep in Mind?

While the fear of missing out may be a significant trigger that can encourage us to spend (or commit more of our hard-earned income), this isn’t the only psychological trigger to consider as a consumer.

We’ve outlined three more to keep in mind below, so that you can shop more responsibly and avoid impulsive buys!

• #1 – The Shopper’s High: According to data gathered by Harris Interactive, 31% of women say that they’ve shopped specifically to elevate their mood, while a further 53% of people hit the town and spend their hard-earned cash to celebrate a particular occasion. Clearly, the notion of a “shopper’s high” is something that has genuine merit, with a desire to feel good or extend a positive emotion one of the primary spending triggers amongst consumers. 

• #2 – A Sense of Competition – Have you ever wondered by Black Friday is the biggest shopping day of the year? It’s because the event preys on human nature, which is inherently competitive and encourages shoppers to buy quickly when prices are temporarily slashed and limited stock is available. This is dangerous, however, as it’s often a subconscious trigger and one that may cause you to spend more than you can afford. 

• #3 – The Fallacy of Saving – Have you ever seen those generous ‘Save 50%!’ offers when shopping online or in-store? This is presented as a great way of saving you money, but it’s built on the premise of you having to spend in the first place. This makes the notion something of a fallacy, especially you may not have considered making a purchase at all were it not for the offer. So, it’s always better to stick to a budget and give careful consideration to all purchases, rather than being drawn in by misleading offers.