Money psychology in marketing: How financial habits influence consumer behaviour
- Favour Onojodofia
- Mar 20
- 6 min read
Money, psychology, marketing. You’re probably wondering what exactly this is about. If you’re into marketing, you’d agree with me that money talks are not something you can completely avoid. At some point, you have to sit at the big table and talk about the big R-word - Revenue. That’s why we talk about money.
Money is more than just a medium of exchange — it’s deeply tied to human psychology. Every purchase decision we make is influenced by our financial habits, whether we realize it or not. For marketers, understanding these habits isn’t just insightful, it’s important for creating effective campaigns that will resonate with different types of consumers.
What’s the link between money psychology and marketing
Money psychology refers to the attitudes, emotions, and behaviours people develop around spending, saving, and investing. These financial habits influence everything from what you buy every day to what you decide to invest in.
As a marketer, understanding these habits helps you adjust your messaging, pricing, and branding to appeal to the different financial mindsets of your consumers. For example, someone who is financially cautious may respond well to messaging that pushes value, while an impulsive spender might be more drawn to limited-time or exclusive offers.
It’s important to understand that financial behaviours are often shaped by personal experiences and cultural influences. Morgan Housel, author of The Psychology of Money, explains that financial habits are largely influenced by past experiences rather than pure logic. For example, someone raised in a household that struggled financially may develop a cautious approach to spending, while those from financially stable backgrounds might take greater risks with money. I think we can all relate to that.
5 common financial profiles that affect consumer decisions
The saver
If you take personal finances seriously, you should be familiar with saving. Savers are highly careful with their money and prioritize financial security over impulsive spending. They actively seek discounts, cashback offers, and loyalty programs to maximize their purchases. Savers prefer brands that emphasize value, durability, and long-term benefits. They respond well to marketing messages that highlight cost-effectiveness, affordability, and financial responsibility.
The spender
Then there are spenders. Spenders enjoy the experience of shopping and often make purchases based on emotions rather than necessity. They are more likely to buy premium or luxury items, prioritizing aesthetics, brand reputation, and convenience over price. Spenders are drawn to aspirational marketing, exclusivity, and social proof, making them a key target for high-end brands and limited-time offers.
The investor
Investors take a strategic approach to spending. They view purchases as long-term investments rather than immediate gratifications. They conduct thorough research, read reviews, and compare options before making a financial commitment. This group values transparency, quality, and trust. You’re likely to convert them if your brand offers detailed product information, testimonials, and data-backed claims.
The impulse buyer
Have you ever bought something you didn’t need on the spur of the moment? Don’t worry, I won’t tell. Impulse buyers make spontaneous purchasing decisions and are often driven by emotions, urgency, or limited-time deals. They are easily influenced by persuasive marketing tactics such as flash sales, scarcity messaging, and visually appealing advertisements. Brands can capture impulse buyers’ attention with engaging content, urgency-driven promotions, and seamless checkout experiences. The key is not having enough time to think about their decisions.
The ethical consumer
Ethical consumers make financial decisions based on values. Examples of some of these values are sustainability, fair trade, corporate responsibility, etc. They are willing to spend more on brands that align with their ethical beliefs and demonstrate social responsibility. Marketing efforts that highlight sustainability, ethical sourcing, and transparency resonate strongly with this group. So, if you know what your customer cares about, you’re likely to get them to spend their money on you.
How marketers can leverage money psychology in marketing
Personalized messaging & branding
Consumers have different financial habits, and as a marketer, you should tailor your messaging to match these mindsets. Savers respond well to messages emphasizing cost-effectiveness, discounts, and long-term value. Spenders, on the other hand, are drawn to the status they can envision with your products/services and luxury branding that conveys exclusivity. Investors prefer data-driven content, so your brand should incorporate testimonials, comparisons, and expert endorsements to build trust. Customizing your messaging with financial psychology helps you create more impactful and persuasive campaigns.
Use strategic pricing techniques
A lot of times, pricing is what influences whether we decide to buy something or not. Your business can use pricing strategies that appeal to different consumer habits. Psychological pricing is a good way to start.
For example, listing a product at £9.99 instead of £10 makes it seem more affordable.
There’s also bundle pricing, which encourages consumers to buy more by offering deals.
Tiered pricing provides options at different price points, allowing consumers to choose a package that fits their budget.
You just have to be strategic in presenting your prices, and you can increase conversions and maximize sales.
Create a sense of urgency and scarcity
Many consumers, especially impulse buyers, are motivated by urgency and scarcity. Limited-time discounts trigger the fear of missing out (FOMO) and push hesitant buyers to make quick decisions. You can also explore exclusive memberships and early access offers that appeal to high-spending consumers who value exclusivity. Sometimes, adding low-stock alerts makes products seem more desirable and encourages faster purchases. You can use these tactics responsibly to create excitement without resorting to manipulative strategies.
Offer flexible payment options
At some point, you’ve probably wished you could get something and didn’t have to pay in full immediately. Consumers who are debt-conscious or budget-conscious are more likely to buy when they have access to flexible payment solutions. Businesses can offer installment plans, ‘buy now, pay later’ services, or zero-interest financing to make purchases more accessible. Subscription-based pricing models can also help consumers manage their expenses by spreading costs over time.
Improve customer experience with behavioural triggers
Understanding financial habits helps you refine the customer journey and improve engagement. Savers appreciate reminders about their accumulated savings or loyalty points, and this encourages them to make repeat purchases. You can also try out personalized discounts based on past behaviour to re-engage previous customers and make them feel valued. AI-driven product recommendations are another way to guide shoppers toward items that align with their financial mindset. The question to ask yourself is this: “What will make my customer spend their money at this point?”
Ethical considerations in financial-based marketing
Avoid manipulative pricing tactics
Yes, I already said that you should use psychological pricing strategies, such as charm pricing or dynamic pricing that changes based on demand. While these tactics can be effective, they must be applied transparently. As a marketer, you should avoid deceptive practices like artificially inflating prices before a sale or misleading consumers with “limited-time” deals that never truly expire.
Be transparent about costs
Consumers value honesty, especially when making financial decisions. You should ensure that all pricing details, including hidden fees, interest rates, and terms of service, are clearly communicated. This is especially important for industries like finance, e-commerce, and subscription-based services, where unexpected costs can lead to consumer distrust and backlash on social media.
Promote responsible spending, not exploitation
With all you know now, you can tell that it’s easy to use marketing tactics to exploit consumers' financial vulnerabilities by encouraging unnecessary or excessive spending. Don’t do that. You should avoid messaging that pressures people into making impulsive purchases they may regret later. Instead, you can promote responsible spending habits, emphasizing value, affordability, and informed decision-making.
Protect consumer data and privacy
Personalized marketing is rising. This means that businesses collect a lot of consumer financial data. Ethical marketing ensures that you handle this data responsibly, with clear privacy policies, secure storage, and compliance with regulations like GDPR. Also, consumers should have control over their data and the ability to opt out of tracking if they choose.
Ensure the ethical use of scarcity and urgency tactics
We’ve seen “Limited stocks are available” somewhere. It probably influenced our decision to make a purchase decision faster. Creating urgency through limited-time offers or low-stock alerts can be effective, but it must be done truthfully.
As a marketer, you should not fabricate scarcity to pressure consumers into buying. False urgency tactics, such as displaying fake countdown timers or claiming "only a few left" when stock is plentiful, can reduce consumer trust.
Understanding the psychology behind money can significantly improve your content marketing strategies and allow your business to create messages that align with its audience’s financial behaviours. This should push you back to the drawing board. Do research and learn about your target audience:
Why would they decide to buy your product?
What experiences do they have that can influence that decision?
When you have answers to these questions, it’s easier for you to create content they can connect with. Using the psychology approach, ethically, helps drive conversions for your brand and builds lasting relationships with customers who feel understood and valued.
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