Tips for Hacking the 'Moments Economy'

The term ‘moments economy’ has been weaving its way through the general lexicon in recent years.

It was first used by British retailer John Lewis to describe a shift in consumer spending habits. In 2022, the department store reported a dramatic increase in sales for flutes, wine glasses, BBQs and pizza ovens, among other items, and cited the shopper’s desire to create ‘moments’ as the cause.

“It wasn’t necessarily a migration away from material and physical goods, but the implementation of those goods to forge instances or memories,” says Jason Beales, chief strategy officer at AIR MILES, a Canadian-based rewards program.

But with interest rates still relatively high, and living costs shocking wallets across the country, spending money on anything other than essentials may seem impossible.

What does being in a ‘moments economy’ mean for you, and how can you make the most of it?

What is the ‘moments economy’?

To understand the ‘moments economy,’ you have to go back to the late nineties when a similar phrase — the ‘experience economy’ — first emerged. It described a shift in spending habits toward — you guessed it — experiences.

B. Joseph Pine II and James H. Gilmore, authors of the book The Experience Economy, provide a simple example of the shift. Consumers used to buy ingredients to bake birthday cakes at home (product-focused), but then moved to buying pre-mixed batter or cakes from a bakery (service-focused). Now, they tend to outsource the cake-baking process to a restaurant and wrap the whole thing around a night out (experience-focused).

So what’s new? Well, the ‘moments economy’ is essentially a subset of the experience economy, says Beales.

Whether someone wants to facilitate a family barbecue, or fly across the country to see a family member for graduation, we’re seeing more microscopic pursuits versus grand events like family vacations to Cancun, says Beales. And COVID-19 was no doubt a catalyst for this change.

“84% of Canadians agree that world events over the past few years have made them realize that time is precious and small moments matter,” says Beales, quoting a recent AIR MILES study on the ‘moments economy.’ “And on top of that, 67% of Canadians are craving more moments with their loved one.”

Creating ‘moments’ on a budget

Prioritizing moments that enrich your life is a crucial part of financial planning.

“It’s essential,” Natasha Knox, financial planner and founder of Alaphia Financial Wellness based in British Columbia, said in an email. But it’s not all about counting beans. Canadians need to look carefully at their schedules, too, adds Knox. “They need to be intentional with their time and attention.”

Think about what’s truly important to you and distill it down to a single notion — creating opportunities to explore your hobbies or seeing your kids more often, for example.

“Spending time with loved ones never has to be expensive,” writes Knox. “For many people, doing something special together on a regular cadence becomes almost a ritual, like a shared micro-culture imbued with deep meaning for the people involved. People often cherish these types of memories.”

This could mean hosting a gathering at home, taking your significant other on a budget-friendly date, going for a walk in public parklands, attending free events at your local library or planning non-peak travel to see family.

If you’re struggling to find alternatives to costly hobbies or activities, reflect on what it is about those things that makes you love them so much, writes Knox. The answer is often a starting point to finding low-cost options that also bring you joy.

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Use rewards to score low-cost moments

Rewards credit cards that earn points or cash back are typically tied to specific redemption programs, such as online marketplaces or travel websites.

The key to using your rewards wisely is to only redeem them for things that align with your priorities.

In other words, avoid scrolling through redemption offerings just looking for things to spend your rewards on. Instead, target things that you’ve already prioritized.

For example, if you find it hard to pursue a hobby because all of your spare cash is going toward bills, consider redeeming your points or cash back as a statement credit. Even if it’s a few dollars a month, a smaller credit card bill is always a win, and can give you some breathing room to do more things you love.

If you want to travel more often, look for redemption deals on your top destinations. And always check the actual cost of the flight against the number of points required to buy it.

If the ticket costs less than what you’ll earn in cash back from your rewards, consider redeeming your points as a statement credit, then buying the ticket directly, possibly earning you more points.

DIVE EVEN DEEPER

Air Miles Rewards Program in Canada: A Complete Guide

Air Miles is one of Canada’s most popular loyalty rewards programs. Members can earn, collect and redeem Dream Miles and Cash Miles for travel, retail and more.