Despite recession fears fueled by ‘retaliatory spending’, Americans spend $314 a month on impulsive purchases

The pandemic has certainly changed the way people spend money.

According to an analysis by McKinsey & Company, “Consumers have abandoned established shopping habits, and pushed e-commerce to hyperdrive.”

Americans spend more on clothing, travel and experiences, the report said, and are now conditioned “to believe they can get what they want, whenever they want.”

But this also makes shoppers more likely to buy impulsively.

Another recent report from online lending company SoFi found that 56% of consumers said more than half of their online purchases are automated, driven largely by changing habits after Covid and the rise of buy now, pay later, which has mushroomed in popularity along with With the general boom in online shopping.

Several studies show that BNPL played a role in Encouraging consumers to spend more than they can afford on impulse purchases.

According to a report by LendingTree, nearly half of shoppers said they wouldn’t make the same purchase if they didn’t have a financing option.

Sites like TikTok, Instagram, and Facebook are fueling impulse buying.

Nearly half of social media users have made a paid purchase with something they saw in their feed, Bankrate recently found. In a SoFi survey, up to three-quarters of consumers said they had purchased something they saw on social media.

It’s not just the appeal of celebrities like the Kardashians anymore: seeing influencers and even friends, posting at restaurants, on vacation, or shopping creates a “keep up with the neighbors” mentality that’s hard to resist.

Nearly 40% of young adults said they spend more money on experiences than on necessities like paying bills, in part because they want to share it on social media, according to a separate report by Credit Karma.

The increase in spending through social media platforms has also led to an increase in shopping while not being completely discreet.

With more consumers online around the clock, SoFi said, more than half of adults, or 53%, admit to having shopped while drunk.

The most popular post-cocktail purchase: clothes, based on social media posts about online drunken shopping. Amazon was by far the most popular retailer.

Buyer’s remorse is not new. However, under these conditions, it is more prevalent than ever.

Among those who used installment payment plans, 22% regretted their decision, according to a survey by DebtHammer.org.

Based on a Bankrate report, 64% of shoppers said they regretted at least one purchase they made due to social media.

And when it came to shopping under the influence, 65% of survey respondents said they forgot to order something until it came to the doorstep, according to SoFi.

Meanwhile, total credit card debt rose again to $890 billion, just below the record set in 2019. Allen Amaden, president and CEO of American Consumer Credit Counseling, offers these tips for curbing spending and paying off debt.

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