Lady Spends the Blues

Women's spending goes up when they are feeling down. 

During shaky times, women are more likely to overspend than during stable ones, says a study from the United Kingdom which examined the link between emotional states and spending patterns. One key finding demonstrates that the majority of women—nearly 80 percent—say that they shop to cheer themselves up when feeling down.

However, results also indicate that even positive extreme emotions, such a high feeling as well as a low mood, may encourage overspending. “This type of spending, or compensatory consumption, serves as a way of regulating intense emotions,” Pine said in a public statement. “If shopping is an emotional habit for women they may feel the need to keep spending despite the economic downturn,” Pine added. “Or, perhaps worse still, if they can’t spend we might see an increase in mental health problems such as anxiety and depression.” 

This kind of behavior is akin to using drugs and alcohol in an effort to regulate mood, Pine’s research says, setting people up to feel the highs and lows that such addictions usually entail.  

While many women use shopping to enhance mood, others reported feeling negatively following a spree. One in four reported feeling guilt, shame or regret after making a purchase in the week prior to the study, and seven out of ten reported experiencing money worries during that same time period.

How to handle retail temptation in this difficult economy? Blogger Mary Hall, known as The Recessionista, contacted demo dirt with her own reaction to the Pine study* (http://therecessionista.blogspot.com/). “My take on this is that people still need to treat themselves to some rewards. I've been calling these The Recessionista's rewards. This is why I am still tracking the sales, going to Loehmann's, checking out the shopping clubs and getting excited that Norma Kamali is now at Walmart and I can buy a great dress for $20.00,” Hall advises.

“I've also been seeking out contests I can enter to get free stuff. Some of my friends are amazed by my dedication to the task. But ladies, and men too, we need our treats, our rewards. Something to give us a lift,” she adds. “Like some of the people in Dr. Pine's study, I believe ‘pretty things’ will ultimately uplift me. I think Celia Birtwell was the one who said that if given the choice, she would choose the ‘pretty.’ Especially, if those pretty things don't break my budget.” 

The Recessionista says that there women have historically engaged in some type of shopping to give themselves a boost.  “Did you know that in the Great Depression sales of women's stockings soared? And in this recession, that trend continues,” she explains. “Overall hosiery sales rose 2.3% this year, with Spanx seeing a 77% increase in sales compared to last year. Leonard Lauder, the chairman of Estée Lauder, has also observed that when the economy is in the tank, sales of lipstick are up. We still want that $10.00 tube of lipstick or gloss to make us feel better.”

Her advice to splurge safely is to be sure to plan and to be aware of emotional triggers. “This is where planning becomes the key,” she says. “I think the real problem here is impulse shopping and overspending when you feel down. All I can say is take a minute and think about that price tag. And if you can't resist, and you get it home, only to discover it's not all that, then take it back!! Yes, you can exercise your power of the purse by doing returns.”

Good finances, Hall reminds readers, reach past the cosmetic counter. “And beyond shopping, remember to take a periodic inventory of your finances and your budget,” Hall says. “Like any other relationship in life, in order for it to be a success, a good relationship with money requires constant communication.”   

* Hall offered her blog entry regarding the Pine research for use in this article.