While there’s nothing wrong with the occasional spot of retail therapy, your daily latte (or three) could be costing more than just your hard-earned money.
While we live in a world where financial independence and smart budgeting are highly valued, one seemingly harmless habit has been quietly eroding many people’s financial wellbeing: ‘little treat’ culture.
Whether it’s that daily iced oat matcha, an impulse Asos purchase or weekly takeaway, small indulgences can quickly add up cost-wise, leading to what’s now being dubbed ‘doom spending’.
Understanding the impact of this culture on our finances and learning how to break free from it can help maintain financial health and achieve long-term goals.
What is little treat culture?
Little treat culture refers to the habit of regularly rewarding oneself with small, often unnecessary purchases as a way to boost mood, relieve stress or simply add a bit of joy to the day.
@thedailyschvitz If theres one thing i deserve its a little treat
It’s rooted in the idea that we deserve to indulge after working hard or enduring a stressful day.
This practice has been amplified by marketing strategies that encourage consumers to treat themselves as a form of self-care or celebration, regardless of the actual necessity or cost of the item.
The hashtag #TikTokMadeMeBuyIt has 9.2m posts under it, at the time of writing.
While there’s nothing inherently wrong with enjoying small pleasures, the cumulative effect of these frequent, seemingly insignificant expenditures can be surprisingly detrimental to our finances.
Over time, these little treats can become a significant drain on our budgets, leading to a cycle of spending that can be difficult to break.
Read more: Why it pays to get your affairs in order
Why can little treat culture be bad?
The allure of little treats lies in their affordability and the instant gratification they provide. However, these small purchases can snowball into significant financial problems:
1. Erosion of savings: Regularly spending small amounts can add up to a large sum over time, money that could otherwise have been saved or invested. For example, if you indulge in a £4.40 latte from your local cafe every working day of the year, that adds up to a whopping £1,144 annually.
Hear that sound? That’s our jaws hitting the floor. Maybe it’s time to master making coffee at home.
2. Impulse buying: Little treats often lead to impulse buying, where purchases are made on a whim without careful consideration of their necessity or value. This can result in accumulating items that are rarely used or quickly lose their appeal, creating clutter and financial waste.
3. Increased debt: For those who rely on credit cards for these small indulgences, the habit can lead to accumulating debt. What starts as a small purchase can become a burden when interest charges start piling up, making it even harder to break the cycle of spending.
4. Delayed financial goals: Every pound spent on a little treat is a pound that isn’t going towards long-term financial goals, such as buying a home, travelling or securing a comfortable retirement. Over time, these seemingly insignificant expenditures can significantly delay or derail achieving these goals.
Why do we doom spend?
Money expert Fred Winchar, CEO at finance broker site MaxCash, explains: “Buying things when you’re feeling down is a coping mechanism that can give you a feeling of escape. It comes with a short dopamine rush, which the body is chasing at that moment to feel better.
“When you spend money, there’s the satisfaction of acquiring something. When people feel down, they crave that satisfaction, and they would buy anything for retail therapy.”
Younger consumers are increasingly likely to fall into chronic doom spending, with a recent study by Credit Karma finding that 43% of millennials and 35% of Gen Zs doom spend to make themselves feel better.
Experts point to social media and influencer culture as driving consumerism in a new way.
Money expert Mike Brown says that research suggests Gen Z consumers prioritise ‘cool factor’ and ethical considerations (such as sustainability) before price. He adds: “Social media also gives younger generations the opportunity to connect and express frustrations with their peers, so that ideas like their inability to buy a house are reinforced.
“The reality is that millennials (and therefore Gen Z) hold significantly less wealth than previous generations did at the same age.”
My whole family is on vacation for a week and so I get to pretend I have enough money to own a house for a week cause god knows I’m never gonna be able to actually afford to do so.
— SunnyD_FGC (@SunnyD_FGC) August 19, 2024
This collective despair around younger people’s current situations is an example of a societal money story that, in turn, influences and perhaps exacerbates their behaviour.
Mike, from financial company Unbreakable Wealth, explains: “If they continually see on social media and the news that they are worse off with factors like stagnant wages and rising costs, they’re more likely to believe their situation is unlikely to improve and hopelessly spend as a result, giving up on saving money.”
Dr Sanjeet Ghataore, consultant clinical psychologist at digital health company , agrees that social media is a massive factor, saying: “Social media can contribute to pressures of ‘needing’ to buy certain things. Platforms like Instagram and TikTok are filled with ads and influencers promoting products.
“Constant exposure to this can contribute to impulse buys, fear of missing out or thoughts of being the only person that does not have this product.”
How to stop doom spending
The next time you find yourself itching to checkout your online shopping cart, step away from the situation and engage in a different activity that will boost your dopamine and take your mind off the purchase. Fred says: “You can take a walk, exercise, engage in a hobby, journal down your emotions, rest, run errands and keep yourself busy. The trick is getting over the need to impulse buy.”
Read more: How can I cut the cost of my weekly food shop?
Fred also suggests reframing how much you view the value of what you’re buying. For example, imagine you have your eyes on a new pair of trainers costing £100. Think about how much you make per hour, say £20. Now, think about the fact that buying them will cost you three hours’ worth of your time. Are they still worth it?
He also suggests making shopping actively harder for yourself, so the urge to impulse buy may have passed by the time you get to the checkout.
For example:
- Avoid auto saving your password, so you’ll need to enter it every time you log in
- Delete any saved credit card numbers to fill in the details manually
- Unsubscribe from company newsletters on promotions and sales to reduce the temptation
Dr Ghataore recommends practicing mindful spending. She explains: “This could be delaying the purchase for 24 hours and noticing what happens to the urge. This can reduce impulsivity and give you time to reconsider. It can also help to set a budget each month for discretionary spending, allowing you to enjoy small treats without guilt or financial stress.”
If doom spending is a persistent issue, consider seeking support from a financial advisor or a community group focused on financial health. Sometimes, sharing your struggles and learning from others can provide the encouragement and accountability needed to make lasting changes.
Read more: How to save money around the house
The little treat culture, while seemingly harmless, can have a profound impact on our financial wellbeing if left unchecked. By becoming more aware of our spending habits, understanding the triggers that lead to doom spending and implementing practical strategies to control our finances, we can reclaim control and make more intentional choices that align with our long-term goals.
Remember, true financial freedom isn’t about never enjoying the small pleasures in life — it’s about finding balance and making mindful decisions that support both your happiness and your financial security. By taking steps to curb unnecessary spending today, you can build a more stable and fulfilling financial future.
