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Impulse Buying: How to Tell the Difference Between Needs and Wants

Have you ever bought something you didn't need just because it was on sale, or because you felt you "deserved it" after a particularly stressful or sad day? If you answered yes, you might be part of the group of people who have given in to impulse purchases.

According to a NerdWallet survey, 1 in 5 Americans (22%) made impulse purchases that significantly impacted their finances in the past 12 months. Most of these purchases are driven by emotional factors and excessive use of social media, which encourages consumerism. Additionally, with the rapid growth of online marketplaces, the convenience of one-click mobile shopping has further fueled spending based on pure desire rather than necessity.

The Marketplace Shopping Behavior Report 2025 revealed that impulse buying has become more frequent. In the survey, 56% of respondents admitted to making unplanned purchases on marketplaces, while 13% said this happens often or very often.

Want to learn more about impulse buying and how to tell the difference between a need-based purchase and a want-based purchase? Keep reading!

What Is Impulse Buying?

Impulse buying refers to purchases made without real necessity or financial planning. These are typically driven by momentary desires and emotional triggers, which can lead people to lose control over their spending. For many, shopping acts as an emotional refuge—a quick fix for satisfaction or relief.

When you make an impulse purchase to soothe emotions, your brain releases dopamine, the neurotransmitter responsible for pleasure and reward. This activates the brain’s reward system, creating a sense of anticipation and excitement that pushes you to complete the purchase. However, once the purchase is made, dopamine levels drop, often leading to regret or guilt—and restarting the cycle of spending → reward system activation.

Needs vs. Wants: Understanding the Difference

Rarely is an impulse purchase driven by an actual need. Most of the time, the desire to own something outweighs its practical purpose, clouding our judgment. Understanding the difference between needs and wants can help you improve your spending habits and make more conscious decisions.

Let's understand each concept:

What Is a Need? By definition, needs are essential items for your survival, well-being, or responsibilities. These are products or services required to maintain your quality of life, and their purchase cannot be delayed for too long without causing discomfort or disruption.

Examples:

  • Replacing a broken or essential item, like work boots you wear daily.
  • Buying a winter coat because cold weather is coming and you don’t have one.
  • Purchasing proper running shoes to start a #HealthJourney.
  • What Is a Want?
  • Wants are things you desire but don’t truly need. These items provide pleasure or status but are non-essential. Often, they’re influenced by external factors, such as social media ads, marketplace promotions, or influencer endorsements.

Examples:

  • Buying another jacket just because it’s trendy, even though you already own several.
  • Subscribing to another streaming service, despite already having three.
  • Upgrading to the latest smartphone, even though your current one works perfectly.

How to Differentiate & Avoid Impulse Buying

It’s okay to occasionally indulge in want-based purchases—like buying a trendy outfit—but when it becomes a habit to fill an emotional void, it’s neither emotionally nor financially healthy. Here’s how to shop more mindfully:

  1. Ask Yourself Before Buying:
    • "Do I really need this?"
    • "Does this fit my budget?"
    • "Is this on my priority list?"
    • "Do I need this now, or can I wait?"
    • If most answers are "no," it’s likely a want, not a need.
  2. Assess the Financial Impact:
    • Needs are usually planned and budgeted for.
    • Wants often lead to unplanned expenses that can strain your finances.
  3. Identify the Motivation Behind the Purchase:
    • Need? → Functionality and survival.
    • Want? → Emotional craving (comfort, status, instant gratification).
  4. Use the 24-Hour Rule:
    • If you’re unsure whether you really need something, wait 24 hours before buying. Often, the urge fades.

Understanding the difference between needs and wants is the first step to curbing impulse buying and maintaining financial balance. If you want to challenge yourself to live more consciously, try the #NoSpendChallenge and invite friends to join!

What about you? Have you ever fallen into an impulse-buying trap? Share in the comments!