Despite recession fears and fueled by 'revenge spending,' Americans spend $314 a month on impulse purchases

Despite recession fears and fueled by 'revenge spending,' Americans spend $314 a month on impulse purchases

  • Even as the cost of living surges and more Americans say they are stretched too thin, they’re also spending more on impulse purchases.
  • More than half of all purchases are spontaneous, according to one recent report.
  • Social media doesn’t help.

    Impulse buys can quickly erode even the best financial plans.

    And yet, between sponsored posts on social media and "revenge spending," they are nearly impossible to avoid.

    As the cost of living surges and more Americans say they are stretched too thin amid concerns about a possible recession, they're dipping into their cash reserves and nearly half are falling deeper in debt.

    Still, 73% of adults said most of their purchases tend to be spontaneous, according to a survey by SlickDeals.net — a significant jump from 59% who said the same just one year ago.

    Shoppers now spend $314, on average, a month on impulse buys, up from $276 in 2021 and $183 in 2020, Slickdeals found.  

    More from Personal Finance:

    What a recession could mean for you

    Best money moves after the Fed's interest rate hikes

    Nearly half of all Americans are falling deeper in debt

    Pandemic shopping changes boosted impulse buys

    To be sure, the pandemic has changed the way people spend money. 

    "Consumers abandoned ingrained shopping habits, hurtling ecommerce into hyperdrive," according to an analysis by McKinsey & Company.

    Americans are spending more on clothing, travel and experiences, the report also said, and are now conditioned "to believe they can get whatever they want, whenever they want." 

    Two friends with cotton candy taking photos against the ferris wheel
     
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Last modified on Wednesday, 24 August 2022 02:28
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