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11/11/2024 10:25

Financial Anxiety Leads to Unnecessary Christmas Shopping

Christian Boström, University of Skövde christian.bostrom@his.se Communications Department
Schwedischer Forschungsrat - The Swedish Research Council

    Christmas is approaching, and for many, economic stress is increasing. Paradoxically, this can lead us to purchase even more gifts. New research from the University of Skövde shows that financial anxiety and stress trigger impulsive buying. “It’s a way for people to find temporary relief from negative feelings about their finances,” says Jalal Ahamed, Docent in Business Administration.

    Shop windows and online retailers are now ready, enticing customers with everything from yoga-compatible scented candles to AI-controlled toothbrushes. Some look forward to the hunt for gifts, while others feel a growing knot in their belly. The financial pressure is mounting, and unfortunately, it can lead people into an even worse financial situation. New research from the University of Skövde indicates that financial anxiety and stress can trigger compulsive and impulsive purchases.

    “Christmas often amplifies financial anxiety by increasing consumption expectations. This can lead to more impulsive buys that serve as a form of temporary relief from the anxiety. This risks creating a negative spiral where further financial stress leads to even more impulsive spending,” says Jalal Ahamed, Docent in Business Administration at the University of Skövde.

    Christmas Makes Us More Vulnerable

    Financial anxiety relates to how we feel and think about money, which is often influenced by our financial situation and past experiences. Low income, multiple children, and high debt levels are factors that heighten anxiety. Poor money management habits and certain personality types can exacerbate the situation.

    With all these factors at play, it is clear that the festive season can be a challenging time for many as both stress and consumption demands increase. Impulse buying is, unfortunately, just one of several negative effects of financial anxiety. Research shows that it also impacts our mental health, relationships, and quality of life.

    “It harms family relationships and our health while weakening social cohesion, often leading to increased isolation. In summary, financial anxiety has a profound impact on individuals, families, and society as a whole,” says Jalal Ahamed.

    Comparable to a Phobia

    However, it can be challenging for many to address their finances. Many cope with the problems by burying their heads in the sand. Jalal Ahamed explains that financial anxiety can be likened to a phobia.

    “We often avoid our phobias. This may provide a temporary sense of security, but in the long run, it can limit our opportunities. Similarly, financial anxiety can lead us to avoid checking our finances or addressing financial problems, which can create even larger issues over time. Confronting our phobias, even when it feels uncomfortable, can be an essential part of overcoming them.”


    Contact for scientific information:

    Jalal Ahamed, Docent in Business Administration at the University of Skövde
    E-mail: jalal.ahamed@his.se, Phone +46 500 448 712


    Original publication:

    Ahamed, A.J. and Limbu, Y.B. (2024), "Financial anxiety: a systematic review", International Journal of Bank Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJBM-08-2023-0462


    Images

    Jalal Ahamed
    Jalal Ahamed
    University of Skövde

    Christmas shopping
    Christmas shopping
    Shutterstock


    Criteria of this press release:
    Journalists
    Economics / business administration
    transregional, national
    Research results
    English


     

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