Spending More in a Recession? You're Not Alone

Did you know that almost 80 per cent of women recently said they would go on a spending spree to cheer themselves up? The survey, conducted by Professor Karen Pine, from the University of Hertfordshire, concludes that some women use shopping as an emotion regulator, “a way of anesthetizing themselves to negative feelings or dissatisfaction with life.” Ironically, this means worrying about money could lead women to spend more, and the recession could actually force more women to overspend.

So: if you find yourself wrecking the budget - or even fantasizing about wrecking it! - when you should be more concerned with keeping money matters in check, you're not alone.

I call this a “pent up purchase” - a variation on a topic I've explored in my practice which I've traditionally called a POP Shot, or a “pissed off purchase.” Through a pissed off or pent up purchase, we're participating in different stages of the grief process: anger and denial. Out of denial, Americans have awakened to a new emotional response to the economic collapse. Our brain chemistry is negatively impacted when we suffer adversity. Our addiction to spending to get that “high” is a common response to spur dopamine production (feel good hormones).

The opinions and habits of the 700 women surveyed line up with what I've seen in my own practice over the years. Four out of ten of the women named ‘depression’, and six out of ten named ‘feeling a bit low’, as reasons to go on a spending spree and overspend. Women commonly expressed the view that shopping has the power to make them feel better, and a Stanford University study identifies one in twenty Americans as compulsive shoppers.

Shopping when feeling depressed is akin to the behaviors that are triggered by other types of addiction. Take stock of your emotions, and the times you feel most prone to engage in a little “retail therapy.” If you're indulging in spite of your budget – or worse, because of it – you may be headed down a dangerous path that will be unhealthy both financially and emotionally. Work to re-wire the pattern of thinking that leads you to shopping, opting instead for spending time with friends, trying something new like taking a class, head to the gym, or use your energies to volunteer. Work to divert your energy and attention into something positive – the possibilities are nearly endless!