Unstudied Americans Admission of Single-Day Online Spending: $5000 on Impulse Buys
Online shopping and impulsive buying: a costly habit in American lifestyles
Treating ourselves has never been more accessible with shopping integrated into social media apps. From avocado toast to candles from TikTok, that latte or Shein outfit in a click might just be an impulse buy that costs a pretty penny.
With a survey by finance platform Clarity Capital, it turns out that online overspending is a major concern for various demographics, including Boomers to Gen Zers. In fact, 1 in 8 Americans has shelled out a whopping $5,000 in a single day on impulse buys online, and many have dished out even more[1].
Not only that, but the average respondent believes their online overspending has cost them an astounding $63,000 in net worth[1]. That's roughly a down payment on a house - seems like we might be spending a little too much on our latest browser scrolls.
Clarity Capital spoke with 1,000 participants, evenly split between men and women. Among their reasons for their financial regrets, buying into the FOMO of "keeping up with the Joneses," falling for "Buy Now Pay Later" apps, and the so-called "Girl Math" trend were the main culprits sucking money out of participants' pockets[1].
Unsurprisingly, the top financial regret among respondents was not investing their money smartly, with 48% regretfully mentioning retirement accounts as their primary concern[1]. Other common regrets included not investing in stocks (34%) and real estate (22%), and 30% expressed remorse over not investing in cryptocurrency[1].
This excessive spending didn't just hit the bank account; it affected 55% of respondents' emotional well-being, causing stress and anxiety[1]. On average, people surveyed believe they'd have at least $100,000 more in net worth if they'd invested instead of spending[1]. This figure leaves more than a third feeling hopeless and believing it's too late.
But it's never too late to turn the tides. Clarity, along with most financial advisors, recommends establishing small, achievable goals, such as setting aside $10 from each paycheck for savings or investment. Practicing the 50/30/20 budget method and instituting cooling-off periods before making a purchase can help prevent impulsive, frivolous buys[1].
Remember, as Clarity says, mistakes aren't the end - they're lessons. By evaluating our mistakes and setting achievable financial objectives, we can recover from our spending habits and aim to recoup any lost ground[1].
Related:
- 11 Frugal Gen Z Habits People Make Fun Of That Actually Work
- 7 Ways To Save Money Immediately, According to a Budget Expert Who Was Once $130K in Debt While Making $12 an Hour
- Research Says This Is the Exact Amount of Money That Buys Happiness - No More, No Less
More than just financial experts are contributing their insights on reining in our spending habits and setting ourselves up for financial success. John Sundholm, a writer and video personality with 20 years of media experience, shares his thoughts on culture, mental health, and human interest topics.
[1] Clarity Capital Survey, reported by various news outlets, 2021.
- John Sundholm, following the Clarity Capital survey findings, suggests that practicing frugal habits, such as those embraced by Gen Z, can help manage excessive spending.
- Integrating the 50/30/20 budget method and establishing savings goals, despite initial mockery, can lead to a healthier personal-finance lifestyle, according to Sundholm.
- Sundholm emphasizes that managing personal finance effectively isn't just about numbers; it's also about mental health, as excessive spending can lead to stress and anxiety, an issue discussed in his work on culture and mental health.
