Spending to save: Why “spaving” is busting your budget

You didn’t plan to spend $87. You planned to spend $42. But the free shipping threshold was just $15 away. The second item was “basically half-price.” And somehow, clicking checkout felt responsible — even smart.

That fleeting sense of victory has a name: spaving. And at a time when Canadians are already stretched by higher food prices, elevated interest rates and record household debt, this habit is quietly sabotaging budgets across the country.

What is spaving?

The term spaving, a blend of “spending” and “saving,” refers to buying more than planned in order to qualify for a deal. That might mean reaching a free shipping threshold, chasing a buy-one-get-one sale or padding your cart to snag a limited-time offer.

The concept has picked up attention thanks to finance experts like Kimberly Palmer at NerdWallet and consumer advocates including Andrea Woroch. Both warn that “deals” often function as spending traps. According to Palmer, even professionals fall for the trick. “I bought an extra shirt to get free shipping,” she told Bustle (1). “But I spent more than I intended.”

Retailers have designed these offers to increase their average transaction size. And it works: a 2023 report by the National Retail Federation (2) found that more than 70% of consumers admit to spending extra to qualify for discounts or perks — — a figure that has remained stubbornly high even as inflation squeezes household budgets.

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Why spaving works so well

Spaving isn’t a failure of math — it’s a product of psychology.

When we perceive a deal, the brain releases dopamine, the same chemical associated with reward and pleasure. That feel-good hit can override rational decision-making, especially in moments of stress or fatigue. This dopamine hit is a major driver as it taps our built-in reward system. When we perceive a deal, our brains release dopamine, the same chemical associated with pleasure and reward. It makes us feel good, even when the “win” is financially irrational.

Behavioral economists call this present bias: The tendency to prioritize immediate satisfaction over long-term goals. That’s why you’ll justify spending $30 on an extra item to “save” $10 on shipping.

Dr. Carrie Joy Grimes, a psychologist interviewed by Bustle, explains that shoppers often experience cognitive dissonance after the purchase, the tension between knowing you overspent and convincing yourself it was a smart financial move. This creates what she calls "mental budgeting," where people allocate imaginary savings from deals to rationalize unplanned purchases.

Social proof and urgency also play a role. Flash sales and countdown timers on e-commerce sites push consumers into quick decisions that feel like must-act moments, when in fact, most offers recycle regularly. Layer in countdown clocks, “only three left” warnings and endless comparison shopping, and spaving becomes almost inevitable.

The real financial cost

Spaving doesn’t just hit your wallet. It can quietly undermine your entire financial strategy.

Buying more than you need often leads to credit card debt, especially with interest rates near record highs. As of mid-2025, the average APR on new credit card offers is around 22%, according to LendingTree.

Over time, frequent spaving also inflates your monthly budget. Adding just $10 to $30 per order to “save” can add up to hundreds, or even thousands of dollars each year. That’s money that could be put toward emergency savings, investments or paying down debt.

The Consumer Financial Protection Bureau (CFPB) cautions that small, repeated purchases can grow into long-term spending patterns, even when they start out as “just a deal.”

And most spaving purchases? They’re unnecessary. While exact Canadian figures are limited, studies show regret is common. One survey from Edward Jones found 93% of Canadians reported buyer’s remorse (3), often after making impulse purchases influenced by comparison with others.

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When spaving actually makes sense

Spaving isn’t always a bad thing. If the item qualifies as a planned purchase — like household staples, gifts or essentials — buying more at a discount can be worthwhile. Free shipping thresholds can also be a smart trade-off, but only if the extra item is something you were going to buy anyway and shelf life isn’t a concern.

Bulk-buying non-perishables like paper products or pet food can offer real value if your budget and storage space allow for it. But the key is intention. A good rule of thumb: If you wouldn’t buy the extra item at full price, the deal probably isn’t worth it.

Financial educator Berna Anat, author of Money Out Loud, encourages a simple mindset shift: before you click “buy,” ask yourself whether you’d want the item if it weren’t on sale. If the answer is no, it’s probably spaving, even if the discount feels too good to pass up.

In her book, Anat also urges readers to get “compassionate” with their spending habits by exploring the emotional triggers behind them, and then building budgeting categories that reflect their values.

How to avoid the spaving trap

There are several strategies to keep spaving in check:

1. Set a spending limit before you shop Always start with a maximum budget and stick to it, even if that means skipping out on a “deal.”

2. Use a list and don't deviate Grocery and online shopping lists help you stay focused. Multiple studies, including research from the Journal of Consumer Psychology, show that list-based shopping significantly reduces impulse spending.

3. Delay checkout Implement a 24 to 48 hour cooling-off period before finalizing a purchase. This helps you identify emotional versus practical spending.

4. Pay in cash where possible Studies from MIT found that people spend less when using cash instead of cards. The pain of handing over physical money can help curb excess spending.

5. Unsubscribe from marketing emails Retailers constantly push time-sensitive deals through email and app notifications. Removing these triggers can help you avoid temptation entirely.

6. Track your spaving Logging how much extra you spend chasing deals can be eye-opening. Using budgeting apps like YNAB, Monarch or PocketSmith to categorize and review your shopping behavior.

7. Enlist an accountability partner Shopping with a friend or sharing your budget goals with someone close can help you stay disciplined.

Keep your goals in sight

In the rush of checkout, it’s easy to lose sight of bigger financial goals. Whether you're saving for a house, building a rainy-day fund, or trying to pay off student loans, every dollar spent on a “deal” is a dollar that can’t work for you elsewhere.

As Palmer puts it, “The best financial decision isn’t the one that saves you the most — it’s the one that aligns with your goals.”

Spaving turns marketing into a mind game, one where you often lose by thinking you’ve won. With a little mindfulness and a firm budget, you can shop with purpose, spend less and truly save.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Bustle (1); National Retail Federation (2); Edward Jones (3)