Reducing Impulse Buying

All buying decisions fall into two categories: (1) items we need; and (2) items we want. Financial difficulties often occur when the categories are blurred. People try to convince themsleves that things they WANT are things they NEED, when often that is not the situation. Our true needs involve a fairly short list:  food, air, water, shelter, health care (including health insurance), clothing, and maybe…Internet access.

However, Internet access can be basis of our financial troubles. Time spent browsing online can result in many unneeded purchases.  How might you avoid this?  The following suggestions are offered:

  • Don’t buy an item right away. Delaying a purchase allows you to consider the value more carefully.
  • Review the purchases you delayed for at least a month to determine if the urge to buy the item still exists, and if the money is available.
  • Delete from your “wish list” any items that you no longer desire to buy.
  • Consider returning an item, as allowed, when the purchase does not meet your expectations.

For additional information on reducing impulse buying, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students describe purchases that might have been avoided using the suggestions above.
  • Have students talk to others to create a list of methods to reduce impulse buying.

Discussion Questions 

  1. Why are some people continually involved with impulse buying?
  2. What are the short-term and long-term financial consequences of impulse buying?

Tips and tricks for Impulse purchases

You are in line at your local grocery store and all the snacks, candy, and cheap gadgets are beckoning to be picked up and added to your shopping bag.  You are shopping on-line and you only need to spend $8 more to get free shipping.  How do you avoid falling prey to impulse buying?  How are marketers reducing friction to get you to buy more stuff?  As a consumer, factoring in additional transaction costs will help you avoid making impulse purchases.

The following article provides way to help you avoid adding impulse purchases, such as:

  1. Carrying cash.
  2. Making it a struggle to get out your credit card.
  3. No more one-click purchasing.
  4. No more e-tailer memberships.
  5. Having an accountability buddy.

 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of carefully watching your spending.
  • Have the students record all purchases for one week and see how much money is spent by the class in total on impulse purchases.
  • Stress the importance of having a budget and sticking to it.

Discussion Questions

  1.  Ask students to recall a time when they were able to resist the urge to make impulse purchases. What were some techniques that they used?
  2. Poll students about e-tailer memberships, such as Amazon. Why did they choose to acquire the membership?  Free shipping? On-demand viewing options.