Coronavirus comfort buying: Stress shopping is a real thing. Don’t let it hurt your finances

Abi Oyewole of Calgary, Alberta, Canada, says she turned to “stress spending” during the coronavirus pandemic. Her outlet of choice: Buying strawberry and blueberry plants as well as herbs to tend on her balcony.

A first-time gardener, Oyewole said her purchases delivered a mental health benefit at a stressful time, especially as she’s disabled, which places her in a high-risk group for the disease. The recent protests across many U.S. cities following the death of George Floyd has also raised her anxieties from her experiences as a black woman, such as being followed by police officers, she adds.

“When you buy something you love, you get that rush of joy,” Oyewole said. “You also have the continual joy of having it in your life.”

Oyewole isn’t alone. The pandemic is impacting the shopping habits of millions of consumers, with almost 4 in 10 saying they’ve made impulse purchases to deal with the stress of sheltering in place and social isolation. 

That’s according to a recent survey from Credit Karma, which also found that 1 in 5 consumers say they’re spending more than prior to the nation’s widespread stay-at-home orders. Even though those orders are now lifting, consumers are still coping with fears about the disease, as well as job and income losses that have touched 4 in 10 households, according to the Pew Research Center. 

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Stress spending gives a sense of control, a valuable feeling during an out-of-control experience like a pandemic, says Ken Lin, the CEO of Credit Karma. It can also provide a sense of novelty when many Americans are limiting their social interactions. But there can be serious consequences if stress spending gets out of control, he cautions.

“Stress causes a lot of problems,” Lin says. “If that is your coping mechanism, you can get into a pattern of debt.”

That’s something that Oyewole takes to heart. She’s budgeted for her gardening purchases and opted for smaller plants that cost $10, rather than $30 or $40 for larger plants. “It’s important to have good moderation,” she recommends.

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Aaron Meyers, who buys and sells comic books and collectibles, says he’s seeing stress spending first hand. Over Memorial Day weekend, the Eugene, Oregon, resident sold $4,000 worth of items, compared with about $700 on the same weekend last year.

“I’ve had several people tell me, ‘Oh, normally I wouldn’t buy this, but I’m bored and sitting in my house and it makes me happy’,” he says. “It’s an impulse buy – it fills an emotional need.”

Meyers, 42, says he’s also buying more for his own collection, although he’s careful not to spend more than he can. “My sales fuel my purchases,” he says, adding that he’s now saving up for a copy of the first issue of Fantastic Four. “It's very expensive. Even in poor condition, it’s about $10,000 to $15,000.” 

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Having something to look forward to – such as getting a package in the mail – may be fueling impulse spending, notes Matt Schulz, chief industry analyst at CompareCards. To be sure, most consumers who are stress shopping aren’t buying big-ticket items, with a recent survey from WalletHub finding that almost two-thirds of respondents said they spent less than $150 on “comfort buying” during the pandemic.

Here’s what the experts recommend for making sure your stress buying doesn’t get out of hand:

Set up a budget

With stress spending on the rise and more households taking an income hit, it’s more important than ever to set up a budget, Schulz says. 

“Starting a budget can be a really good way to exert a little bit of control in an out-of-control situation,” he says. “It’s basically impossible to make a meaningful plan to attack credit card debt if you don't know exactly how much money is going in and going out of your house on a regular basis.”

Budget for both the short- and medium-term, spanning the next three to nine months, Lin recommends. A budget that spans several months “will give you clarity if you are falling behind, before getting several hundred more dollars in debt,” he says.

Pay with cash

Credit card debt can sneak up on you, which is why Lin recommends paying with cash. Of course, the opportunity to use actual paper cash has dwindled in the pandemic. As stores reopen, some are encouraging consumers to use contactless payment systems because of concerns about the spread of viral infection.

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Instead of paper bills, consumers can turn to apps like Venmo and Apple Pay, which you can connect to your bank account. That means that your payment will be debited from your bank account, rather than adding to your credit card balance. 

Put aside money in an emergency fund

Lastly, stress spending may fill an emotional need, but don’t forget to build an emergency fund, Lin adds. The good news is that about one-third of Americans are saving their stimulus checks, the $1,200 per-person payment mandated by the CARES Act, which will help those households build a financial buffer.

“In a recession, consumers tend to increase their savings,” Lin says. “We tend to be more cautious with uncertainty.”