What are the factors that influence spending behavior?

February 6, 2023

Spending behavior is influenced by a variety of factors - including personal factors such as income, wealth, and financial goals, as well as external factors such as the economy, cultural norms, and marketing.

Which personal factors influence spending behavior? 

One of the most important personal factors that influence spending behavior is income. People with higher incomes can generally spend more money than those with lower incomes. Additionally, wealth can also play a role in spending behavior. People with more wealth are likely to have more disposable income to spend on luxury items or experiences.

Another personal factor that can influence spending behavior is financial goals. People who are saving for a specific goal, such as a house or a retirement, may be more likely to limit their spending in order to reach that goal.

Which external factors influence spending behavior?

External factors can also play a significant role in spending behavior. The economy can influence spending behavior by affecting people's confidence in their financial stability. For example, people may be less likely to spend money on non-essential items during a recession. Additionally, cultural norms can also affect spending behavior. In some cultures, it is considered more socially acceptable to spend money on certain things, such as clothing or cars, while it may be considered more acceptable to save money  in other cultures.

Marketing can also have a significant impact on spending behavior. Advertisements and sales promotions can create a sense of urgency or desire for a product, leading people to make impulse purchases. Additionally, companies can use psychological techniques to influence people's spending behavior, such as creating a sense of scarcity or exclusivity around a product.

How can the Hubble Money app help you become a mindful spender? 

Hubble money is a unique spending account where you can add the money that is lying idle in your bank account. Where your savings account provides 4-5% in 12 months, Hubble gives you 10% in just 100 days. 

You can plan your monthly spending like how much will you spend on shopping, traveling, grocery shopping, etc., and add that money to Hubble. Once you add your money to your Hubble money account, it starts growing by 0.1% from the next day onwards and gives you 10% rewards in 100 days. Then, you can use those earnings & your money to generate a virtual payment card and buy anything you want from our brand partners. 

We have partnered with 30+ top brands like Amazon, Myntra, Uber, Swiggy, Zomato, Flipkart,  and more to deliver the most rewarding spending experience to you. 

This way, you will be able to control your monthly spending under different buckets and become a mindful spender. 


Spending behavior is influenced by a complex interplay of personal and external factors, including income, wealth, financial goals, the economy, cultural norms, and marketing. Understanding these factors can help individuals make more informed decisions about their spending and help them achieve their financial goals.

Did you find it helpful?

Shuaib Azam

Marketing & Growth
Linkedin logo used as a link to linkedin page
Shuaib is a Marketing & Growth lead at Hubble. When he isn't working on growth initiatives, Shuaib writes fiction and doodles space monkeys.

Related Posts