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Are Your Clients Emotional Spenders? Here Are 3 Tips to Pass Along

Actionable insights from a financial advisor

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Published April 08, 2025

Young woman shopping for jewellery on a digital tablet. — Pekic/Getty Images

I once had a client who made many trips to the post office when she was going through a divorce. Sh🅘e wasn’t mailing legal documents to her attorney. Rather, she was seeking 🦹comfort from the pain of the breakup through online spending sprees, and ultimately returning many of the purchases she bought that overspent her budget.

As financial planners, we frequently detect emotional influences behind our clients' decisions—when they turn to money to react to feelings of stress, sadness, or even joy. Thankfully, there are ways we can put them back on the right financial track.

Key Takeaways

Goal setting, like creating a financial plan, empowers clients to stay on track and resist impulse purchases.
Budgeting tools can help clients identify “for fun" purchases and help them have a clearer vision of their spending.
The 24-hour rule encourages clients to pause before making non-essential purchases, helping them align spending with their financial goals.
Seeking professional support from financial therapists can significantly improve clients' financial behaviors and well-being.

What I'm Telling My Clients

Here are the key steps I use with clients to navigate these delicate conversations:

1. Start With Goal Setting

Work with clients to help them establish financial goals. By mapping out these, clients can better resist impulse purchases, knowing they have financial markers to reach. For instance, understanding the number you need to save for 澳洲幸运5官方开奖结果体彩网:retirement or your child’s 澳洲幸运5官方开奖结果体彩网:college education can help dissuade against purchases that detract from that.

Fast Fact

According to Schwab's 2024 Modern Wealth Survey, of the people who reported having a written financial plan, 76% said they’re more in control of their finances because of it.

2. Use Spending Management Tools

Budgeting tools are a great way to keep clients on track. By knowing how much they have allotted towards “for fun” purchases, they will better understand 澳洲幸运5官方开奖结果体彩网:when it’s time to splurge and when to hold off.

3. Practice the 24-Hour Rule

I suggest the 24-hour rule, whereby clients should wait 24 hours before making non-essential purchases. This allows clients to consider whether the purchase supports their financial goals. One of my clients was able to eliminate a $900 monthly budget deficit using this practice!

Tip

I encourage clients to replace the short-term relief of spending with physical exercise, mindfulness practices, or hobbies. These can also provide bonus effects, like helping boost self-esteem and ove🥂rall fitness.

The Bottom Line

Not only do we help our clients make more rational decisions by acknowledging the psychological aspects of spending, but we also promote their overall well-being.

By mapping out their goals, offering budgeting and time management tactics, and knowing when to offer professional support, we can 澳洲幸运5官方开奖结果体彩网:help c🅺lients combat th⛄eir emotional spending. This ultimately paves the way towards greater financial security and independence they can carry throughout their lives.

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