Survey: Impulse Buys May Be Ruining Some Americans’ Finances
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Long gone are the days where impulse buying meant grabbing an unplanned candy bar or magazine in the checkout line. Now, social media makes it quick and easy for us to purchase just about anything with the click of a button, whether or not it’s in the budget. And for some Americans, it’s hurting them financially.
According to a new NerdWallet survey, conducted online by The Harris Poll, more than 1 in 5 Americans (22%) have made impulse purchases that have significantly impacted their finances in the past 12 months. Here are three strategies to combat the urge to shop hastily.
1. Save first, spend after
Around 1 in 6 Americans (16%) say they spent more on impulse purchases than they put into their retirement accounts most months in the past 12 months, according to the survey. A good way to avoid this is automating savings first and then spending what’s left over.
Let’s say your company offers a 401(k). If you set up automatic contributions of 10% (or whatever amount will help you reach your retirement savings goal), and then pay your bills, you can freely spend what’s remaining after. Similarly, you can set up automatic contributions to an IRA or savings account that transfers within a day or two of payday to make sure your goals are covered before you start buying nonnecessities.
2. Unfollow and unsubscribe
Out of sight, out of mind. When you’re initially motivated to do something, like save money and shop less, it’s easy to imagine that you can conjure up your willpower every time your favorite store emails you a coupon or that relatable influencer posts a new must-have (“link in bio!”) purchase. But once that motivation wanes, chances are it will be harder to say no. Instead, set guard rails for the person you are, not the person you aspire to be, and unfollow and unsubscribe from accounts and emails that lead you to spend impulsively.
This isn’t a perfect solution; most people on social media will be exposed to plenty of tempting ads throughout the day. But by getting rid of the accounts that are known triggers, you can at least avoid some impulsive shopping.
3. Wishlist and wait
Today, there is very little friction between deciding you want something and being able to acquire it. One-click ordering and fast, free shipping mean you can have the thing you want in days, if not hours, without ever leaving your home. But what if you put some time between wanting something and buying it to see if the appeal wears off?
One solution is a wishlist with a waiting period. That means each time you see something you want that isn’t a necessity, you put it on a list with the date and the reason you want it. Then after a set period of time — 48 hours, 2 weeks, whatever works for you — you revisit it and see if it’s still something you want. Oftentimes, when you put time between the desire and the acquisition, you’ll find it’s no longer a priority for you. And if it still is, you can buy it if it’s within your means to do so.
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Oct. 1-3, 2024, among 2,090 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Disclaimer
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.
