The psychology of spending and saving habits – 5 examples:

  • Impulse buying: the tendency to make purchases without careful consideration of their cost or need.
  • The influence of emotions on spending: emotions such as excitement, stress, or boredom can drive spending habits.
  • Social comparison: people often compare their spending and possessions to others and feel pressure to keep up.
  • Present bias: the tendency to prioritize immediate rewards over future benefits when making spending decisions.
  • Scarcity mindset: the belief that resources are limited and the need to acquire as much as possible.