Skip nav to main content.

A Comprehensive Look at the Psychology of Spending (English)

BALANCE Financial Fitness is a program paid for by Redwood Credit Union to provide our Members free access to tools and tips for better money management. Whether you're interested in creating a budget, developing a workable spending plan, getting out of debt, understanding and improving your credit report, buying a home, or planning for your financial future, Redwood Credit Union, and our trusted partner BALANCE, are here to help.

BALANCE is a confidential financial education and counseling service committed to helping individuals and families nationwide take control of their finances and reach their goals. On the BALANCE website, you’ll find information about what they do, who they are and how they can help you master your money. To speak with a BALANCE representative call 1 (888) 456-2227, toll free.

Do you ever wonder why you left the mall with $500 worth of clothes when you were not planning to get anything or bought one pair of shoes over another? It is not just personal preference. Psychologists have found that there are several forces that govern our consumer behavior and cause us to make decisions that are not necessarily rational or in our best interest. However, understanding why we buy what we buy can help us make better decisions in the future.

Why is it important to make smart shopping decisions? Many people put purchases on their store or credit cards. If you charge too much and are unable to pay off your balance in full, you could wind up with debt that takes years to pay off and costs thousands of dollars in interest charges. Even if you don’t get into debt, overspending can take away from important saving goals, like a down payment for a house, college, or retirement.

This 5-page program - with an optional quiz to ensure understanding - covers factors that commonly affect the psychology of our spending, including:

  • The Role of Advertising
  • Keeping Up With the Joneses
  • Spending Habits
  • Impulse Buying
  • Bargain Hunting
  • Retail Therapy
  • Money as Love
  • I’ll Worry About Tomorrow Tomorrow

Click on the image to get started!