Treats Over Savings: The Real Reason We Can’t Stop Buying Little Treats

By Fira

Taken from Pinterest @ashaheaton

Have you ever had a tiring day and told yourself, "I need to treat myself to something because I deserve it," so you ended up buying an overpriced coffee, or that lipstick you’ve been putting on hold, or even an impromptu weekend concert ticket? If you have, you’re not alone. This is a growing culture among people, especially in the past decade, and it’s been so normalized that we rarely question ourselves anymore on why we do this.  

The History Behind This Consumer Behavior

This is more than just mindless spending; from an economic perspective, this is called the “lipstick effect." It’s a mechanism that has been observed by economics for almost a century. Historically, during the Great Depression, while sales of other goods steadily declined, only one category recorded increasing sales: cosmetics. The reason behind this phenomenon is simple: as consumers’ disposable income falls, they forgo big luxuries and instead opt for small ones. For example, a tube of lip gloss isn’t going to pay bills, but it will make you feel human against everything else that feels out of control.

Is It Strictly Only Lipsticks?

Not necessarily, as the global market keeps expanding, there are more goods that fall into the same category that help consumers overcome despair. For instance, movie tickets, desserts, high-end collectibles, and bags are great examples to observe this effect on. Today, the “little treat” has evolved far beyond the red lipstick; it might be a matcha latte, a phone case, or a limited-edition collectible. The fascinating point is that these decisions aren’t random, but they are often tied to each person's personal preferences.

Is It Beneficial or Harmful?

Every decision has both pros and cons; hence, this effect has its own benefits and downturns as well.

For ordinary people like you and me, this serves as a way to stay grounded and lead a fulfilling life even during a period of economic downturn. When life feels like surviving between paychecks, spending on small luxuries creates momentary happiness, enough to keep pushing through. Moreover, little treats aren’t harmful, as long as we’re sensible enough to understand our own financial situation.

In contrast, these small purchases can be far more addictive and damaging than they seem. According to consumer psychologists, the dopamine hit we get from buying something is brief but powerful, causing us to crave it more and more. Therefore, it creates an endless cycle of stress that leads to buying, which leads to temporary relief, and when the relief fades and stress returns, the cycle keeps repeating. Before you even realize it, these little treats add up more than expected, taking up a larger chunk of your salary that was meant for something else. With the rise of ‘Buy Now Pay Later,' these impulses are harder to control, which in the long run could hurt you financially.

When uncertainties keep piling on and bigger achievements, such as saving up for a house, seem far from attainable, smaller and certain spendings fill up the ache in our hearts. Although it hinders us from achieving certain milestones in life, which is a privilege in the current economic conditions, these treats aren’t a direct sign of financial irresponsibility. This is true as long as we can keep track of this spending and ensure it doesn’t lead to emotional spending that drains our savings more than we realize.

It is important to realize that the line between self-care and self-sabotage is thin, and it’s drawn by awareness. So, spend but try to spend wisely and cut back on these indulgences every now and then.