Nothing is more rewarding than purchasing an item on your wishlist after months of saving up. No urban millennial wants to consider themselves materialistic, but shopping can become cunningly addictive. Some consumers have trouble differentiating between a want and a need. Knowing what type of shopper you are can help you craft the appropriate budget and steer your volatile credit card away from overspending tendencies.

Spender Type 1 - The Treat Yourself Shopper

“I worked hard for it; therefore, I deserve it,” tends to justify extravagant purchases—until you start sinking into an impossible debt cycle. There will undoubtedly be times when indulging in a shopping spree makes sense, but if you’re abusing this mentality more than you can afford to do so, it might be time to get back behind your budget board. 

Spender Type 2 - The FOMO Shopper

Most eCommerce shoppers will refer to social proof when purchasing a popular item online. However, allowing others considerable control over your shopping habits can prove itself a dangerous path. Sure, everyone wants to fit in—but not at the expense of their bank account. 

Refusing to feel left out is a problematic frame of mind to escape. If you’re taking social trips, spending on designer clothing, and quenching your thirst for lavish dining experiences, ensure that you’re doing so within your budget. 

Jealousy is a destructive emotion. Consider allowing yourself to cave on expensive treats three or four times a year—chances are, you’ll quit experiencing FOMO. 

Spender Type 3 - The Comfort Spender

When you’re feeling down, online shopping tends to tickle the senses. In some cases, a take out meal or piece of jewelry you’ve been eyeing for months can relieve building anxiety—but you can’t keep turning to your credit card for a mood boost. 

If you’ve quarreled with your partner or had it out with your manager, don’t immediately turn to Amazon for help. If you feel a purchase will soothe your harsh feelings, consider whether it’ll make you feel the same way in a few weeks—or even months—before clicking “complete order.”

Spender Type 4 - The Bored Shopper

You’re on your annual work leave or heading into summer vacation. Your calendar is looking a little bare without any plans. ”I guess I’ll shop,” you say, only your bank account can’t keep up with this expensive filler activity. 

If you feel the need to be active and have time to spare, consider indulging in another activity. Expend energy by spending time doing something that will tire you out—attempt a new recipe, take an at-home Zumba class, or enjoy a board game marathon with a family member. 

Spender Type 5 - The Deal Seeker

The Deal Seeker is a fan of coupons and promo codes. Typically, you’ll find them ripping vouchers from magazines or surfing the web for lucrative sales. They find that an item once worth $100 is now only $75 and think, “I’m saving $25,” instead of, “I’m spending $75.” 

After a while, “But it was on sale!” becomes a tired excuse, and you’ll have to work your way towards relinquishing all the money you’ve spent. 

Conclusion

Whatever type of shopper you identify with, it’s essential to differentiate between wants and needs. No matter how good a deal, knowing when to cap your spending can do a lot for your budget in the long run. 
At urbanwallet, we’re all about empowering urban African American spenders. We are big believers in black financial literacy and work to provide millennials with alternative investment methods and saving tips.