The Psychology Of Workplace Spending

Spending money is something that everyone enjoys doing to some extent. The psychology behind spending is a powerful force with emotions often running high and having a significant role to play when making financial decisions. It is often the case that we do not realise the extent that emotions and feelings influence our money and the profound impact they have. How many times have you felt a bit low so decided to cheer yourself up with a few purchases? I know I have and while the excitement lasts a short time, it is unfortunately not long lasting.

In the workplace, various emotive factors such as stress, peer pressure and the elation of success can trigger in us certain emotional responses that manifest in various spending habits. For some, the stress of a demanding job may lead to the release of emotions by impulse spending as it is well documented that retail therapy can and does provide temporary relief from work related pressures. Alternatively, the feel good factor of a professional achievement or recognition may prompt impulsive spending as a reward or seen as a necessary celebration.

Within the environment of a workplace, peer pressure is a very real influence in regard to how money is spent. The culture of many workplaces inevitably involves social activities, outings, lunches and various events held throughout the year can cause some to spend beyond their means. The strong desire to fit in, be accepted, included and be liked and admired as well as maintaining a certain image and perhaps wanting to impress others can come at a cost which of course will contribute towards financial strain and worry.

Employees who are satisfied and content in their job are less likely to seek solace in purchasing material possessions or expensive experiences and thereby filling a void in their lives which is caused by unfulfilling professional experiences. Sometimes, understanding the emotional driving force is important for those who strive to maintain and have a positive control over their finances. Creating awareness around emotional spending allows for more intentional decision making. Developing healthy coping mechanisms for workplace induced stress such as seeking support or engaging in free activities can help mitigate impulsive spending tendencies. Education on debt, debt management and money management skills are all essential tools that can help individuals to stay within budgets. Employers can and should play a role in creating a financially healthy working environment by implementing financial wellness programmes that actually address the psychology of spending and educating through various financial resources. They should aim to reduce any financial pressure placed upon employees and be able to recognise and support those who face challenges.

By recognising emotional triggers that influence spending behaviours, individuals can aim to strike a balance between professional satisfaction and financial wellbeing. Employers and employees alike can both contribute towards a healthier and more sustainable financial landscape within the workplace, having a positive effect on all.