Impulse buying: Definition, types and how to stop

Have you ever looked at your receipts for a month’s worth of purchases and been surprised by how much you spent? Maybe you bought items you didn’t really need. Or some you’d already forgotten about. This can be a sign of impulse buying.

While a single impulse purchase might seem harmless in the moment, they can add up. Learn why impulse spending happens and how to break the habit.

What you’ll learn:

• Impulse buying involves making unplanned purchases.

• Impulse buying can be influenced by your emotional state, need for instant gratification or response to advertising.

• Budgeting and making shopping lists could help you avoid impulse buying.

Impulse buying happens when you make a purchase without planning. And according to the Consumer Financial Protection Bureau (CFPB), an impulse purchase may lead to spending more than you can afford. 

Impulse buying isn’t limited to seeing something on a shelf and buying it. Any spontaneous purchase might qualify, including: 

• Grabbing treats at the grocery store that aren’t on your shopping list

• Purchasing last-minute concert tickets

• Signing up for a streaming subscription to watch one particular movie

• Having dinner delivered when you planned to cook at home

• Buying a gift card because it’s being sold at a discount

• Making an unexpected investment

Psychology Today magazine says there are four types of impulse buying you might experience:

• Pure impulse buying: An emotionally driven purchase outside your typical buying habits

• Suggestion impulse buying: Something you’ve never purchased before but now your mind creates—or suggests—a need for it 

• Reminder impulse buying: An unplanned purchase that happens while shopping and you’re reminded of the need for it

• Planned impulse buying: An item you purchase sooner than planned based on a special deal convincing you that now’s the time to buy

Impulse buying isn’t always logical. In fact, it can be highly emotional. Here are reasons why impulse buying might happen:

If an item is in short supply or available for a limited time, fear of missing out (FOMO) could cause a shopper to feel an urge to buy right away.

Psychologists use the term “present bias” to explain what can be behind the need for instant gratification. The term describes the tendency to choose a smaller payoff in the present over a larger payoff in the future. 

When someone impulsively swings through the drive-thru window for an $8 pick-me-up latte on a bad day, that might qualify as instant gratification.

Advertising is often aimed at getting shoppers to spend more money. One way to do that is by encouraging impulsive spending. 

Advertising and marketing strategies may include deals and promotions. They can also include deliberate product placement, like arranging items next to the cash register to catch the customer’s eye. Stimuli in the store environment and suggestions by salespeople can also influence customers.

Sticking to a budget, using shopping lists and reflecting on your purchases before buying could help limit impulse buying. Here’s a closer look at these methods:

By using a budget to get a clearer understanding of how much money is coming in and going out, impulse buyers might be more motivated to stick to their planned spending. The CFPB offers these simple steps for getting started:

1. Identify where your money comes from, including all forms of income plus benefits or financial support.

2. Categorize where your money goes and start tracking your spending. This step is important for curbing impulse buying because every time a purchase is made, you document it.

3. Take note of your bills and when they’re due so you can pay them on time and in full.

4. Implement a budget method that works for you.

A simple way to avoid impulse buying is to make a list before shopping. Navigating the grocery store, the mall or even an online retailer could be easier with a plan in hand.

Pausing before making a purchase could help you avoid impulsive spending. Before checking out at a store or online, it might be worth asking yourself a few questions, like:

• Are any of the items in my cart unplanned purchases?

• Is this item a need or a want?

• What emotions are affecting my desire for this item? 

• Should I wait and come back for this item in 24 hours or more?

• How long would I have to work or save to buy this item?

Impulse buying can take many forms. But creating a budget and sticking to a shopping list could help you avoid it.