We've all been there; you see something you want, and before you know it, you're clicking “add to cart”.

This article is part of our new series Finance Explained, sponsored by BNZ.

Social media has the ability to “profoundly influence” impulse purchases, according to a 2021 UK study on Gen Z shopping habits.

The thrill of instant gratification is real. But what if there was a better way?

Enter delayed gratification, the art of not giving in to immediate wants and instead saving up for something truly worthwhile.

I know, I know—maybe you stifled a yawn just reading that. But stick with me! Delayed gratification can have some surprising perks that make it well worth practising.

Sweet, sweet instant gratification

Cory Noble from Christchurch uses payment schemes to instantly purchase items such as new shoes or hair products—things she’d otherwise need to wait until her next paycheck to afford.

“I suppose I could divide out those costs then save for it, but honestly that requires a level of planning and budgeting that doesn't come natural to me,” Cory says.

“When I use it a little at a time it's usually not a problem, but when it's used for the bigger items, the truth is it isn't always something I can afford in the first place.”

Cory says the benefit is instant gratification, but it is possibly something that makes her less financially stable in the long run.

Why do we shop impulsively?

Bodo Lang, marketing professor at Massey University, says we’re hardwired to make quick decisions. 

“Back when we were all wearing animal skins to keep ourselves warm, it was very important to make decisions quickly,” Bodo says.

“It takes time and effort to make an accurate decision, but we’re naturally hardwired to look for shortcuts and avoid decisions that cost us time and energy.”

Bodo says marketers and businesses know this, and they tap into that to push our buttons.

Sneaky techniques marketers use

According to Bodo, there is a huge list of techniques social media marketers use to make us want to buy something now. Here are just a few examples:

• Gamify shopping: Making a shopping experience feel like a game by giving customers points or rewards for making purchases.
• Creating urgency: Using phrases such as “limited time offer” or “only a few left in stock” plays on our fear of missing out.
• Social proof: Showcasing testimonials, user reviews, or influencer endorsements to validate products. When we see that others have had positive experiences, we are more likely to trust and want the same for ourselves.

Learning delayed gratification

Frances Ronowicz, head of social impact at BNZ, says one of the key steps to being financially well is learning delayed gratification.

This means having the ability to trade short-term gain for long-term rewards. 

“We all need to learn to slow down, and go ‘I'm going to put a little bit of money aside each week, and I'm going to wait and get that item when I've saved for it or saved a reasonable amount towards it’,” Frances says. 

Delayed gratification is a really good skill to learn, otherwise constant overspending can stop you from saving for future goals and will inhibit you later down the track, she says.

“I think conscious spending is a key habit to build, just taking that time to pause and think if this is a worthwhile purchase.”

How to stop shopping impulsively and start practising delayed gratification 

Bodo claims you could “write a PhD” on all the different strategies people can use to resist the urge to shop impulsively. But here are a few techniques:

• Limit your screen time: The first step to curbing impulsive shopping habits is to steer clear of any potential e-commerce environments. Utilising screen time limit features on your phone can be a highly effective way to reduce the temptation to buy items on impulse. 
• Decline cookies and personalised ads: Minimising how much information you give to marketers and websites is really important. Saying no to personalised ads allows you to focus on your actual needs rather than being swayed by algorithm-driven recommendations.
• Write a shopping list and stick to it: It may sound boring, but if you’re shopping, even online, write a shopping list and stick to it. For instance, if you go tech shopping and you say you’re going to buy earbuds with a budget of $100, well, that's all you're allowed to buy.
• Change your perspective on money: Instead of focusing on the short-term dopamine hit an impulsive purchase might give you, consider how those expenses can accumulate over time and impact your long-term financial goals, like buying a house or booking a holiday. If you focus on saving for the big things you really want in life, you’ll feel more fulfilled and secure with your money down the road.

Rethinking impulsive spending habits

Cory Noble says she’s re-thinking how she shops.

 “Answering the questions for this article has really made me rethink things.”

Cory had to close all her payment schemes that she used for impulse shopping so she could get a mortgage. Since getting her mortgage, she has reopened one of the accounts. 

“I have used them way less since reopening only one of the accounts, and I recently paid the balance off. 

“I actually might consider no longer using them.”

This article contains general information only, not professional advice. BNZ is not liable for any losses resulting from this article.

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