A large proportion of Americans overspend from time to time. A recent survey from NerdWallet suggests that 83% of the nation does so, with a similar proportion of those who have a monthly budget (84%) exceeding it. While there may be some comfort found in knowing that you’re not alone, you suspect that your behavior is about more than a poor ability to balance a household budget. After all, you typed or voiced “addicted to spending money” into online search and arrived here.
A self reported compulsion to spend money is more nuanced than the discussion about a so-called shopping addiction or compulsive buying-shopping disorder (CBSD). It may also feature unhealthy spending on activities, services, and even charitable outlets. In a recent article titled “Is Venmo Safe? A Mental Health Perspective“, reference was made to the neurological reaction (more on this below) that drives certain individuals to use digital wallets in an unhealthy way, beyond the acquisition of products. This behavior is facilitated by the integration small, easy to make, microtransactions which are associated with addictive behaviors (view more). There are many rabbit holes that one could on with respect to how digital wallets have been designed to encourage habitual, and sometimes compulsive, usage. However, the intent of this article is to provide you with insight into what you may be experiencing, why you may be experiencing it, and what you can do to end unhealthy spending behavior. Please keep reading.
Overview of a Perceived Addiction to Spending Money and What Can Be Done to Correct Unhealthy Behavior
Signs of Spending Addiction
Are you among the millions of Americans who overspend but can ultimately overcome the habit with some sound budgeting advice, or is your behavior more problematic? If you exhibit a combination of three or more of the following behaviors, therapeutic intervention is likely required:
- You often spend money on activities, products, and services that you don’t need and/or can’t afford.
- You succumb to the uncontrollable urge to spend money on non-necessities throughout the day.
- You spend money to gain social validation and “keep up” with perceived social standards. Connected to this, is the frequent sharing of what you’re spending money on (a feature that is enabled on certain digital wallets) with online social connections.
- You are in debt or experience continuous severe financial strain due to spending behavior.
- You lie to loved ones about spending money and/or the prices/rates of activities, products, and services.
- You lie to loved ones about spending money when you have indicated that you are going to create a budget and stick to it.
- You get irritable, restless, or anxious when not spending money on non-necessities.
- You’re online and spending on non-necessities when not safe (while driving) or appropriate (at work).
- You spend money as a means to cope with and escape negative feelings. This often occurs when negative feelings are related to financial stress.
- You feel guilty or regretful after spending money on non-necessities.
- You have attempted to control or cut down on spending without success.
Issues That May Occur with Spending Addiction
Spending money can feel good because it triggers a release of dopamine and endorphins in the brain, creating feelings of pleasure, excitement, and a reward for effort. Understanding this makes it easy to recognize that the action may be a reaction to feelings of anxiety, stress, or depression. This is what we refer to as an unhealthy coping mechanism. It’s unhealthy because it creates a dopamine loop, which in this case is a self-reinforcing brain cycle where spending triggers a dopamine release, motivating the repetition of spending behavior for continued reward. When the stimulus causes a surge of dopamine, the brain remembers and craves that rewarding action, strengthening neural pathways that drive repeated spending behavior despite negative consequences or lack of authentic enjoyment. Woefully, one of those negative consequences is increased financial stress, which leads to stronger feelings of anxiety or depression.
The phenomenon of unhealthy spending can exist on its own, but it quite often cooccurs with aforementioned feelings of anxiety, stress, or depression in addition to various other mental health concerns and psychological states. In recognizing what these are, and how they may relate to you, you may better understand that why you’re unable to control your spending, without self-inflicted judgement. Awareness of the potential presence of cooccurring concerns may also confirm any suspicion you have that professional intervention may be required. Below is a list of issues that have known comorbidities with unhealthy spending:
- Anxiety – Spending is often used as a coping mechanism for feelings of anxiety.
- Stress – Spending is often used as a coping mechanism for feelings of stress.
- Depression – Spending is often used as a coping mechanism for feelings of depression.
- Low Self Esteem – LSE is linked to unhealthy spending through a cycle of using purchases to boost self-worth, cope with insecurity, or gain social validation. Individuals may engage in this behavior not just for a dopamine rush, but to supposedly improve their appearance/social status and/or match perceived social standards.
- Attention Deficit Hyperactivity Disorder – ADHD is strongly linked to impulsive spending, often driven by a need for instant gratification, dopamine-seeking behavior, and poor executive control. This manifests as perceived answer for emotional regulation, overspending due to poor planning, and difficulty managing budgets.
- Obsessive Compulsive Disorder – OCD is linked to unhealthy spending through shared neurological pathways, impulse control issues, and the consumption of products/services to reduce anxiety, often classified as an obsessive-compulsive spectrum disorder. Unlike classic addiction driven by pleasure, OCD related spending is generally a compulsive, ritualistic response to intrusive thoughts, aimed at relieving distress rather than gaining satisfaction.
- Post Traumatic Stress Disorder – PTSD is linked to spending addiction primarily as a maladaptive coping mechanism to manage emotional pain, anxiety, and trauma triggers.
Bidirectional Connections to Behavioral Addictions
It’s important to also take a look at what unnecessary spending is focused on. It may be bidirectionally related to other unhealthy behaviors. The following behavioral addictions are tightly tethered to unhealthy spending habits (click each to learn more, where available):
| Compulsive Buying-Shopping Disorder | Problem Gambling |
| Unhealthy Prediction Market / Day Trading | Substance Use Disorders |
| Unhealthy Gaming (w/ purchase integrations) | Unhealthy Consumption of Pornography (w/ subscription integrations) |
Practical Steps to Curb Spending Habits
The following are practical steps to take, beginning immediately, which can help you curb unhealthy spending behavior leading into and/or as a supplement to working with a counselor:
Delete Digital Wallets
Your debit card still works. Use it (or cash) for necessary spending, and delete digital wallets such as are PayPal, Apple Pay, Venmo, Cash App, and Google Wallet. Digital wallets depend upon addictive microtransactions for user-experience (UX) and for revenue generation. You can remove debit and credit cards connected to each digital wallet from within the apps themselves. If this seems too extreme or is too inconvenient, at least remove the apps from your smartphone device until you are able to manage spending behavior.
Disable NFC / Contactless Payments from Smartphone
NFC (near-field communication) contactless payments are a wireless method to spend money by tapping a smartphone, smartwatch, or contactless card against a payment terminal. NFC/contactless payments are not identical to digital wallets, but they are intrinsically linked, with NFC technology acting as the primary method to facilitate payments from a digital wallet. A digital wallet is the software app storing your cards, while NFC is the wireless technology that transmits payment data. The “frictionless” nature of NFC/contactless tech significantly increases the odds of spending, with users averaging 10% more in purchases compared to traditional methods. As such, they foster impulsive behaviors, lower awareness of expenses, and can lead to increased spending habits. You can disable NFC/contactless payments, remove cards, or set up restrictions in the Privacy & Security section of your smartphone. Do so until you are able to manage spending behavior.
Remove Shopping and Activity Apps Where You Spend the Most
If your unhealthy spending relates to shopping, remove addictive apps that you frequently use to make purchases, such as Amazon (view more) and eBay (view more). If it relates to activities such as online gambling, remove all connected apps and take it a step further by using the self-exclusion tips operators have made available (here’s how).
Unsubscribe
Even after removing apps, spending behavior will be triggered via push notifications and emails, which you have likely subscribed to when initially setting up accounts with digital wallets along with consumer-based apps. Be sure to use the unsubscribe from receiving ALL digital communications from them.
Unfollow Brands Related to Your Spending
Spending behavior will also be triggered by exposure to the products and services associated with brands that you may follow on social media. Unfollow them.
Unfollow Influencers that Encourage Spending
As per the above-stated need for social validation (a sign of unhealthy spending), unfollow social media accounts that promote constant consumerism and create envy.
Have Healthy Alternatives on Standby for Triggers
Identify your triggers to spending, such as boredom, stress, or sadness. Then, have alternative, healthy dopamine-producing activities locked and loaded so that you can immediately pivot to them when the urge to spend occurs. Examples include exercising, participating in outdoor recreation, reading, engaging in a creative pursuit (art, photography, etc.), or working on a passion project.
Compulsive Spending Treatment
Treatment for self-reported compulsive spending is available today through Kindbridge Behavioral Health. Through methods such as Cognitive Behavioral Therapy (CBT) and Dialectical Behavior Therapy (DBT, unhealthy spending can be treated by identifying and restructuring the negative thought patterns, emotional triggers, and impulsive behaviors that fuel overspending. Through structured sessions, you will learn to replace unhealthy habits with mindful spending and develop skills to manage impulse control. Further, your counselor will assess for and help you address underlying issues that may exist. The end result will be increased happiness, optimized wellness, and a healthier bank account (all else equal). Reach out via the contacts provided below to get started.
