Financial spending increases during the holiday season as the community searches for the perfect gifts for their family and friends, but this leisurely shopping can sometimes turn into unwarranted purchasing during all months of the year just to satisfy a need. This is called Emotional Spending, according to Valerie Belusko, a Community and Economic Development Educator for the University of Illinois Extension.

Belusko says that emotional spending can be compared to an addiction where impulsive buyers will spend money with their hearts to satisfy a need.

There are five common reasons for overspending: social pressure, not accounting for inflation, lifestyle creep, credit misconceptions, and emotional spending. These aspects cause the affected person to make purchases that do not coincide with their lifestyle or financial abilities.

Belusko provides tips on how to curb emotional spending.

For information or questions regarding emotional spending, email Valerie at valerieb@illinois.edu.

Valerie Belusko appeared as a guest on the WTIM Morning Show.