Why We Buy Things We Don’t Need

Have you ever walked into a store for one item and left with a cart full of things you didn’t plan to buy? Or clicked “Add to Cart” during an online sale just because of a discount? You’re not alone—impulse buying and emotional spending are deeply ingrained in modern human behavior.

This article dives into the psychological triggers behind our spending habits and how to develop better money management strategies. Understanding the psychology of spending can help reveal how emotions, social influences and even marketing tactics sway our purchases, often without us realizing it.

1. The Science Behind Why We Spend

The Dopamine Rush of Shopping

Spending money—especially on new or exciting items—triggers the brain’s reward system. Studies show that shopping releases dopamine, the “feel-good” chemical that creates pleasure and excitement. This is why buying something new often feels satisfying, even if it’s not something we truly need.

MIT even did a study on the link between spending with a credit card and the dopamine rush in the brain. Did you know that people tend to spend more when using a credit card, and are more inclined to pull the trigger on expensive items?

Emotional Spending: Buying to Feel Better

Shopping is often linked to emotions. People tend to spend more when they’re:

• Stressed or anxious – Retail therapy can be a way to cope with negative emotions.
• Celebrating – Many justify splurging on rewards after accomplishments.
• Bored – Online shopping has become a common way to fill time.

Solution: Instead of impulse buying, try financial mindfulness techniques to recognize emotional triggers before making a purchase.

Some financial mindfulness practices could include:

• Daily budget check-ins
• Identifying spending triggers
• Writing down what you’re grateful for
• Stress reduction
• Pausing before making a purchase

2. Marketing Tactics That Influence Our Spending

Limited-Time Offers and Scarcity

Have you ever bought something because the sale was “ending soon?” Retailers regularly use scarcity marketing to create urgency and a fear of missing out, making shoppers act quickly.   

Example: “Only 2 left in stock!” or “sale ends in 3 hours!” – These tactics push us to buy before we have time to think.

Tip: Before making a large purchase, wait 24 hours minimum to see if you still want it. Often the urge fades, preventing unnecessary spending.

Check out this Money & More article on impulse spending and how to avoid it.

The Power of Social Proof

Humans are wired to follow others. Social media, influencer marketing and product reviews all influence what we buy. Seeing others enjoy a product makes it feel more desirable—even if we don’t need it and wouldn’t otherwise have considered making the purchase. If you find yourself making these types of purchases, you should consider checking in with yourself to ensure it’s something you both want and need, or even avoid social media for a little while altogether.

3. How Spending Habits Impact Financial Goals

The Debt Cycle and Credit Card Spending

Impulse purchases, especially on credit cards, can quickly lead to debt. A small splurge can snowball into high-interest payments, making it harder to save or invest.

Tip: If you tend to overspend with credit cards, try using a debit card or a separate savings account for non-essential spending.

Opportunity Cost: What Are You Giving Up?

Every unnecessary purchase means less money for savings, investments or financial goals. For example:

• $50 on takeout each week = $2,600 a year
• $100 on new clothes each month = $1,200 a year

Over time, these small expenses add up to missed opportunities for emergency savings or retirement contributions.

4. Practical Strategies to Control Spending

Set Spending Limits with a Budget

A simple 50/30/20 budgeting rule helps manage expenses:

• 50% for needs (housing, bills, groceries)
• 30% for wants (dining, shopping, entertainment)
• 20% for savings and debt repayment

Use a “Waitlist” for Big Purchases

Before buying anything over a set amount (e.g., $100), add it to a 30-day waitlist. If you still want it after a month, it may be worth purchasing. If not, you saved money!

Automate Your Savings

Instead of spending impulsively, set up automatic transfers from your checking to a savings account. This ensures you’re prioritizing financial goals before discretionary spending.

OMB’s mobile banking app makes automatic transfers a breeze.

Spending money is part of life—but by understanding why we buy things we don’t need, we can make smarter choices and work toward financial stability. By applying these strategies, you can break free from impulsive spending and build a healthier relationship with money.

OMB and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision.