EOFY SALES AND EMOTIONAL SPENDING: HOW TO SHOP SMART WITHOUT THE STRESS

The End of Financial Year (EOFY) sales season is here again, and with it comes the familiar rush of sales, deals, and that nagging feeling that you must buy something before June 30th. But here’s the thing – emotional spending during EOFY sales might derail your financial goals if you’re not careful.

Let’s talk about what’s happening when those “limited time only” emails hit your inbox and how you can navigate this season without the financial hangover.

The psychology behind EOFY Sales

Since the late 1990s, EOFY Sales has become a retail phenomenon in Australia. We’ve come to expect big sales, and retailers know exactly how to tap into our emotions to get us spending.

Research suggests that around 90% of our money decisions are driven by emotions rather than logic. There has been fascinating research in this area done by the late Nobel Prize-winning psychologist Daniel Kahneman. When you combine this with the artificial urgency of EOFY Sales marketing, it creates the right conditions for overspending.

The Australian Retailers Association found that EOFY Sales shoppers in 2024 spent an average of $1,638 each – that’s up $22 per person from 2023. With retail sales of $36.2 billion during June 2024 alone (Australian Bureau of Statistics data), it’s clear these sales tactics are working.

But here’s what’s happening in your brain: emotional spending occurs when feelings like fear, panic, excitement, or that dreaded FOMO (fear of missing out) drive your financial decisions instead of rational needs.

How retailers hook you during EOFY Sales

EOFY Sales marketing isn’t accidental – it’s carefully designed to trigger your emotions.

Retailers use tactics like:

• Limited-time offers with countdown timers
• “Only 5 left in stock” messages
• Exclusive deals that create artificial scarcity
• Social proof like “127 people bought this today”

The psychological impact is real. Scarcity makes items seem more valuable while creating anxiety that leads to impulsive purchases. Your brain’s amygdala (the emotional center) takes over, tuning out your prefrontal cortex (the part responsible for budgeting and rational decisions).

The darker side: scams and deception

Unfortunately, EOFY Sales season also brings out scammers who know how to exploit our emotional state during busy sales periods.

Australians lost $2.74 billion to scams in 2023 according to the ACCC Targeting Scams report, and major sales events see scammers working overtime. They deliberately target the chaos and urgency of EOFY Sales, capitalising on our rushed decision-making.

Red flags to watch for include:

• Emails with suspicious sender addresses
• Unusual language or threatening tones about “missing out”
• Extreme time pressure tactics
• Deals that seem too good to be true

Remember: legitimate retailers don’t need to threaten you or create artificial panic to make a sale. For more information about scams visit our webpage, and to report if you’ve been scammed, visit Scamwatch.

Emotional spending in the ‘Cost of Living’ crisis

Here’s the uncomfortable truth: many Australians are struggling with the cost of living, more and more expenses are becoming luxuries.

That temporary emotional high from buying something you “needed” during EOFY Sales? It’s often followed by:

• Financial stress when the credit card or buy now, pay later bill arrives
• Buyer’s remorse over unnecessary purchases
• Disrupted budgets, savings and financial goals
• Increased anxiety about money

Financial insecurity affects mental health, increasing stress and making it harder to function under debt pressure. It can be a vicious cycle where emotional spending creates more emotional distress.

Your EOFY Sales survival guide

The good news? You can absolutely shop EOFY sales without falling into these traps.

Before the sales start:

• Create a needs-based shopping list (not a wants list)
• Set a realistic budget and stick to it (our budget calculator is really helpful)
• Research normal prices so you can spot genuine deals
• Ask yourself: “Would I buy this at full price if I really needed it?”

During the sales:

• Use the 24-hour rule for any purchase over your comfort zone
• Question marketing tactics that create artificial urgency
• Take regular breaks from shopping environments (including online)

After shopping:

• Evaluate your purchases against your original needs list
• Know your rights under Australian Consumer Law
• Don’t fall for extended warranties unless you’ve read the fine print

This Choice EOFY sales 2025: Everything you need to know article provides excellent guidance on navigating EOFY sales effectively.

Building emotional intelligence around money

The key to avoiding EOFY Sales emotional spending is understanding your personal triggers.

Try keeping a spending diary that tracks not just what you buy, but how you’re feeling when you buy it. Are you more likely to spend when you’re stressed? Excited? Bored? Read our article The ins and outs of a budget – spending for more information about budgeting and spending diaries.

Financial freedom happens when your emotions no longer drive what you buy. Self-control enables you to make rational, informed decisions about your money – even when that “50% off” email is screaming at you. And if you give in to your less rational self (or others around you who ask for more financial help during these times) try to not beat yourself up, we are, after all, complex individuals.

Some suggestions for developing healthy alternatives to emotional spending:

• Call a friend instead of shopping when you’re lonely
• Go for a walk when you’re stressed
• Seek out free activities that give you the same emotional satisfaction

Support resources

If emotional spending has become a bigger issue, help is available:

Government resources:

• ACCC Scamwatch for reporting suspicious retailers
• Along with our website, MoneySmart website for financial education
• National Debt Helpline (1800 007 007) for financial counselling

Professional support:

• Mental health support for financial stress (such as Open Arms)

The relationship between financial worries and psychological distress is real, so don’t hesitate to seek professional support if you need it.

Summing up

EOFY sales can offer genuine value – if you approach them strategically rather than emotionally.

Remember: Retailers have spent millions studying how to trigger your emotions and get you spending. Awareness is your strongest defence.

You don’t need to avoid EOFY sales entirely. You just need to shop with intention, not impulse.

Before you click “buy” on that deal, ask yourself: “Am I buying this because I genuinely need it and it’s a good price, or because someone has made me feel like I’ll miss out if I don’t?”Your future self (and your bank account) will thank you for taking that extra moment.