The psychology of spending: Why we buy what we don’t need

It feels good

Whenever you go to the store and buy something new, it activates your brain’s reward system, releasing dopamine – a feel-good chemical. Retailers know this and design experiences to maximize that rush. Flashy displays, limited time offers, and intentional messaging are all crafted to make you, the customer, feel impulsive.

Social influence and comparison

We naturally compare ourselves to others – perhaps a leftover survival instinct from long ago. In the modern era, social media amplifies this trait by showcasing curated lifestyles that make us feel like we’re falling behind. Then they follow it up with targeted advertising.

How to outsmart yourself

• Pause before purchasing - Where possible, give yourself 24 hours to decide whether you really need something or not.
• Make a list and stick to it - Whether you’re shopping online or in-store, have a plan.
• Track your spending - Awareness is the first step to changing your behaviour.
• Set financial goals - A clear purpose makes it easier to resist temptation.