The Psychology of Consumption: A Look at New Spending Behaviors

SUMMARY

While spending behaviors are influenced by socioeconomic circumstances as well as emotional decisions, the amount of money an individual receives significantly determines their spending habits. This is why the most common behavior is compulsive zero-day spending. A large portion of the working population spends their entire salary as soon as they receive it. The rate of those who engage in catastrophic spending, albeit rarely, is 27 percent. The median age of those with a low-reward mentality is 29. Those who engage in catastrophic spending have a spending-to-income ratio of 29 percent.