Milestone: Young People (Ages 13-24) 

Topic: Impulse Buying  

Product Targets: Youth Account, Piggy Bank, Christmas Account

 

What is impulse buying?
  1. impulse (noun) - A strong urge to act that happens suddenly, like a reflex.

  2. buying (verb) - to own in exchange for money

An ever-growing advancement and integration of e-commerce technologies in digital social spaces offers benefits of convenience and accessibility, but with it come unique challenges; one of the most threatening is teen impulse buying.

Impulse buying is acting on a sudden urge, with no prior intention to do so, and without setting or considering long-term, or short-term, goals. It is often linked to addiction, and can create strain on mental health, quality of life, and of course, finances.

At the forefront of this threat are young people because they are highly exposed and susceptible to peer influence and social norms. Not to mention, consumption is central to the development of young people's identities. Social media platforms are the modern-day equivalent of going to the mall, which for half a century served as a meet-up, hangout spot for young people to congregate, socialize and shop. This blog by Sentry Credit Union will explore the factors contributing to teen impulse buying, the risks associated with it, and practical strategies for addressing the issue, including how to stop impulse buying and fostering healthier financial habits.

 

How to Stop Impulse Shopping: A Closer Look at Teen Susceptibility

Teens were already having these connective, social experiences in digital spaces like YouTube and Tik Tok, before they became e-tailers. Taking an even closer look at what is feeding this consumer cycle, there’s a critically fundamental factor to consider. A psychological term used to describe the ability to self-regulate, plan, organize, make decisions, and learn from previous mistakes, that is executive function.

Within this function holds the ability to focus, process information, filter distractions, and prioritize. Much like an airport relies on having a highly effective air traffic control system to manage flight arrivals and departures on multiple runways, executive function is essential for effective memorization, mental flexibility, and self-control skills. It begins to develop shortly after birth and continues to mature until around age 30. To ensure that children develop these capacities, it’s helpful to understand how the quality of the interactions and experiences that our communities provide for them either strengthens or undermines these emerging skills.

Overall, teens are spending a significant portion of their time on social media sites. So much so that Pew Research has created a new characterization for its 2024 studies amongst the teen age group called, “almost constantly”, which consist of persistent users who are “virtually always active in social apps.” The risk of teen impulse buying increases with time spent on social media. It is important to be aware of this risk, develop a plan for how to stop impulse shopping, and encourage healthy financial values and behaviors.

 

Tips For Teens on How to Stop Impulse Buying

Here are tips on how to stop impulse buying and develop executive function skills:

  1. Establish A Routine – Consistency provides a structure, helps planning and organizational skills development. This can include everything from meals, homework, and screen time.
  2. Plan to Practice, Practice to Plan – Having a planner, calendar, or dry erase board at home to mark academic, extracurricular, and recreational activities also develops executive function. Gradually work up to more complex tasks like planning for a project, a trip, and even early financial goals!
  3. Checklists For Everyday Tasks – A separate list from chores, or deadlines, these can be a practical tool to help young people stay motivated and on task.

 

Additional Resources to Help Teens Stop Impulse Buying

Understanding how to stop impulse buying is crucial, especially for teens who are heavily influenced by social media and peer pressure. With their executive function skills still developing, providing the right tools and resources can make a significant difference. Sentry Credit Union offers solutions like the Youth Savings Account, which helps young individuals set and achieve financial goals. For younger savers, the Piggy Bank Savings Account offers an engaging way to build early saving habits. Additionally, the Christmas Club Account teaches the value of planning ahead and saving for specific needs. By combining these financial tools with strategies like establishing routines, practicing planning, and using checklists, teens can develop healthy money management habits and learn to resist the urge to make impulsive purchases. These resources empower them to take control of their spending and build a secure financial future.