Personality
Has the Pandemic Changed Our Spending Patterns?
Exploring impulsive financial decisions.
Posted November 20, 2021 Reviewed by Gary Drevitch
Key points
- Research found that women were 12% more likely than men to have made an impulse purchase during the pandemic that they regretted.
- Men made impulse purchases less frequently, but their purchases are more expensive.
- Women are more likely to engage in impulse spending because it represents a positive experience, rather than the avoidance of a negative feeling.
![Capital One, used with permission Capital One, used with permission](https://cdn.psychologytoday.com/sites/default/files/styles/article-inline-half-caption/public/field_blog_entry_images/2021-11/treatself_0.png?itok=AtlX_ZD8)
Memes and wall art (with affirmations like the one at left) are increasingly validating impulse spending by promoting a shift from thinking about the potential negative long-term effects of spending choices to thinking about present, feel-good emotions.
Impulse buyers often don’t have a pre-specified item to purchase in mind, so are more susceptible to buying unnecessary things. These impulsive decisions may result in buyer’s remorse and harm an individual’s financial position.
A recent survey by Capital One explored the financial, mental, and physical health of Americans, from pre-pandemic to the present. The survey of 2,000 Americans also asked respondents about the financial habits they would like to change: 41% said impulse spending.
- Women are 12% more likely to have made an impulse purchase during the pandemic that they later regretted.
- One in 3 women (33%) said they made a weekly impulse purchase.
- Nearly half of women (48%) regretted their purchase in under an hour; for men this was 40%.
- Men made impulse purchases less frequently, but they were often more expensive; more than 1 in 4 (27%) spent over $250 on their impulse purchase
Affective Processes (Feelings) and Impulse Spending
Multiple factors contribute to impulse purchases, which can be broadly characterized as external (situational and product-related factors, demographic and socio-cultural factors) and internal factors (affective processes and personality traits).
In my research (n = 155, ages 18-30; 79% female), I was interested in exploring internal factors, specifically, and the role of affective processes (feelings) in impulse spending. There are two affective processes that drive unplanned purchases:
Positive: Experience happiness/pleasure. Statements include:
- I like to shop for the novelty of it.
- I feel like I’m exploring new worlds when I shop.
Negative: Avoid stress/anxiety. Statements include:
- After a new purchase, I feel relief.
- When I have many things to complete, shopping is a good distractor.
Research findings
How do affective processes (feelings) impact impulse spending in men and women?
Women are more likely than men to engage in impulse spending, because it is a positive experience for them. For men, there was no significant difference in impulse spending as a positive experience or to avoid negative emotions. They were significantly more likely to engage in impulse spending because it represents a positive experience rather than to avoid a negative feeling.
What personality traits predict impulse spending in men and women?
Women are more likely to impulse spend due to a focus on the present moment.
Impulsive buying behavior was measured with statements like:
- Buy now, think about it later.
- I often buy things spontaneously.
Two personality traits predicted impulse spending:
- Motor impulsiveness: Acting without thinking or on the spur of the moment. (Males and females)
- Cognitive complexity: Present-moment focus without thinking of future consequences. (Females)
Takeaway
If you're in tune with your motivations, an impulse purchase is not inherently a bad thing. In times of uncertainty, it may be more important than ever to be aware of motivations that drive financial decision-making. Here are three steps drawn from therapeutic practice that you can put into action:
- Observe. While my research found that women typically view purchases as an expression of their identity and are driven by a need for self-expression, it is important to stop and reflect on what is driving your financial decisions. Observe how you feel when you impulse spend.
- Describe. Do your purchases bring you joy, or are they a source of discomfort or guilt? Are your purchases something you want to share (with a friend/partner) or something you want to hide? Describe your experience of your impulse spending.
- Participate. Now that you are more aware of what motivates your impulse spending, how would you like to proceed? What is your next action? How would you like to participate in an intentional and directed way in your next financial decision?
I’m partnering with Capital One to share recent research they conducted to explore the financial, mental, and physical health of Americans, from pre-pandemic to now.