Stress impacts how you choose to spend your money. Although stressed consumers generally decrease their spending, preferring to save money, they actually increase spending on items considered necessities.
Physiologically speaking, stressful situations activate the hormone cortisol, preparing you to face potential dangers. In the face of threats, either real or perceived, we enter survival mode and try to obtain control. Thus, we have cognitive processes designed to deal with stress in times when we cannot handle the demands of our immediate environment.
That desire for control not only drives your ability to function, but also directs how you spend money. Thus, if stressful life conditions cause you to feel powerless, you might seek to regain control by increasing your purchases of items you consider necessary.
