National Splurge Day

Are you tired of moderation, endless budgeting and taking the frugal option? If so then National Splurge Day is definitely for you.

While for the rest of the year a person may be a model of financial prudence, National Splurge Day is an opportunity to let that hair down, go wild and spend a little more on something decadent!

1899
Veblen Coins “Conspicuous Consumption”
American economist Thorstein Veblen publishes The Theory of the Leisure Class, describing status-driven luxury spending as “conspicuous consumption.”
1920s
Mass Consumer Culture Takes Hold in the U.S.
Advertising, department stores, and installment credit help turn Americans into mass consumers, normalizing discretionary “treat yourself” purchases.
1950
Birth of the Modern Credit Card
Bank of America pilots BankAmericard in California, helping usher in general-purpose credit cards that make spur-of-the-moment splurge purchases easier.
1986
“Retail Therapy” Enters Popular Vocabulary
A Chicago Tribune article uses the phrase “retail therapy,” capturing the idea that shopping sprees and indulgent buys can temporarily improve mood.
1990
Self-Gifts Defined in Consumer Research
Journal of Consumer Research publishes Mick and DeMoss’s study on “self-gifts,” framing indulgent purchases for oneself as rewards, celebrations, or mood repair.
2011
Self-Gifting as Justified Indulgence
Researchers Kemp and Kopp show that people often frame self-gifts as justified indulgences, explaining how “I deserve to splurge” thinking supports hedonic spending.
2018
Linking Hedonic Shopping, Indulgence, and Regret
A Journal of Consumer Marketing study finds that hedonistic shopping and indulgence drive self-gifting but can also trigger post-purchase guilt and regret.

How to Celebrate National Splurge Day

Get involved with this day by celebrating all the luxury that life has to offer! National Splurge Day is just the right time to spend a little extra and enjoy with some of these ideas for celebrating:

Take the Upgrade

Whether booking flights, reserving a hotel room, getting a massage or just ordering a drink, perhaps National Splurge Day is just the right time to say “yes” to those upgrades. Choose the upgrade to business class or get the gold star hotel room. Indulge in the top shelf liquor for that cocktail and go ahead and order that decadent dessert.

For those who don’t have a ton of money in the bank to splurge with (and going into debt isn’t a great idea!), this day could simply be one where you say “yes” to the whipped cream on top of that coffee drink or go with the super-size fries just this once. Even the small things can mean a lot when they are celebrated!

Splurge on Someone You Love

While it’s true that National Splurge Day might be happily spent indulging alone, most things in life are more enjoyable when they are spent with someone else.

Choose a friend who may have been having a hard time and take them out for something they would enjoy.

Perhaps a shopping trip, a decadent meal or a day at an amusement park. Spoil someone and enjoy the look on their face as they spend the day being happy and content with all of the fun!

Take the Day Off

Perhaps a splurge for some people might mean simply resting and relaxing. Call off from work and celebrate National Splurge Day with a bubble bath, some takeout and an indulgent day alone.

National Splurge Day is about celebrating and doing something that a person may not usually take the time or money to do. Treat yourself! After all, you only live once, so why not enjoy it?

History of National Splurge Day

Saving money and being financially responsible is a vital part of surviving as an adult in this day and age. Everyone works hard for their money, paying taxes and buying insurance. Paying back student loans or buying diapers for the babies. Saving for the future.

That’s right, being fiscally responsible and living within a budget is a task that all but the wealthiest folks in the world need to do. But… there is one day when all bets are off and it’s time to have a little fun. It’s National Splurge Day!

The history of National Splurge Day can be traced back a few decades, to 1994, when the day was founded by Adrienne Sioux Koopersmith.

Hailing from Chicago and owner of her own communications company, Ms. Coopersmith considers herself to be an “eventologist”, founding holidays as a way of enjoying and celebrating the good in the world following a traumatic event in her own life.

With a flair for the whimsical, Koopersmith wanted to encourage people to enjoy life a little bit and so, National Splurge Day was born!

Facts About National Splurge Day

The Psychology Behind “Treat Yourself” Purchases

Behavioral research distinguishes between hedonic purchases, made for pleasure, and utilitarian purchases, made for function.

Studies show that small, planned hedonic purchases can boost short‑term happiness and even help people stick with strict budgets or diets by preventing feelings of deprivation, as long as they stay within an overall financial plan.

Impulse Buying Is Often Emotional, Not Rational

Consumer‑behavior studies find that a significant share of unplanned spending happens when people are stressed, tired, or in a heightened emotional state, rather than after careful comparison shopping.

Surveys cited by behavioral economists show that many households spend hundreds of dollars a month on impulse buys, with emotions like boredom and stress among the main triggers.

Present Bias Makes Splurging Today Feel More Attractive Than Saving

In behavioral economics, “present bias” describes the tendency to value immediate rewards much more than larger, delayed ones.

Classic work summarized in economic overviews shows that this bias helps explain why people often choose a splurge now instead of adding the same money to retirement or an emergency fund, even when they know the future choice is better on paper.

Mental Accounting Helps People Ring‑Fence Fun Money

Psychologists have found that people mentally divide their money into “accounts” such as rent, groceries, or entertainment, even when all funds sit in the same bank balance.

Research on “mental accounting” shows that intentionally creating a separate budget for discretionary splurges can reduce guilt and help people enjoy small luxuries without undermining savings or bill‑paying.

Conspicuous Consumption Was Identified Over a Century Ago

Long before modern shopping apps, economist Thorstein Veblen described “conspicuous consumption” in 1899 as buying goods mainly to display wealth and status rather than meet basic needs.

Scholarly summaries note that his work on the “leisure class” laid the groundwork for later studies of luxury spending, designer labels, and status‑driven splurges across many cultures.

Consumer Culture Turned Wanting More Into a Social Norm

Historians of consumption point out that the idea of people as “consumers” only became common in the early 20th century.

Analyses from MIT Press and other scholars show that mass advertising, department stores, and consumer credit in the 1920s promoted an “almost insatiable appetite” for goods, encouraging ordinary households to aspire to frequent treats and upgrades rather than limiting purchases to strict necessities.

“Save More Tomorrow” Shows the Power of Pre‑Commitment

While splurges focus on spending, one of the most influential personal‑finance experiments did the opposite by using behavioral tricks to increase saving.

The “Save More Tomorrow” program, developed by economists Richard Thaler and Shlomo Benartzi, asked workers to pre‑commit to raising their retirement contributions with each future pay raise, and field studies showed that this simple nudge substantially boosted long‑term savings without feeling like a painful sacrifice.

National Splurge Day FAQs

Is “retail therapy” ever healthy from a psychological point of view?

Research suggests that small, deliberate purchases can improve mood in the short term and restore a sense of control, especially when people choose items carefully rather than buying on impulse.

Studies in consumer psychology have found that making purchase decisions can reduce residual sadness, but they also note that shopping does not solve underlying problems and can become harmful if it turns into compulsive buying or creates debt.

How can someone tell the difference between a one‑off splurge and a harmful spending habit?

Psychologists and financial educators point to patterns rather than single events.

A one‑off splurge is usually planned, affordable within a budget, and followed by little or no regret.

Harmful patterns tend to involve frequent unplanned purchases, hiding spending, using credit to cover necessities because money went toward wants, and feeling out of control or distressed afterward.

Reviews of compulsive buying describe these behaviors as red flags rather than normal discretionary spending.

Do planned “treat yourself” purchases actually affect long‑term happiness?

Evidence suggests that how someone splurges matters more than how much they spend.

Studies consistently find that experiential purchases, such as trips or shared meals, create more lasting satisfaction than material goods, and that spending on others often boosts happiness more than spending on oneself.

When splurges are aligned with personal values and do not undermine financial security, they are more likely to contribute to overall life satisfaction.

Is it financially responsible to include splurges in a household budget?

Many financial education groups and planners view modest splurges as healthy when they are built into a realistic spending plan.

Guidance from public agencies and nonprofit educators recommends first covering essentials, debt payments, and savings goals, then setting aside a defined “fun money” or discretionary category.

This approach allows guilt‑free treats while reducing the risk of overspending or relying on high‑interest credit.

Why do some people feel more pressure than others to spend on visible luxuries?

Economists and sociologists point to “conspicuous consumption,” a term Thorstein Veblen used for buying goods mainly to signal status.

Later research shows that people who feel judged on appearances or who face social or racial barriers to status may direct a larger share of income toward visible items such as cars, jewelry, and clothing.

Local norms, peer groups, and media images all influence how strong this pressure feels in everyday life.

Can occasional splurging coexist with goals like paying off debt or saving for retirement?

Financial planning materials generally say it can, provided the trade‑offs are explicit.

Educational resources encourage people to map out income, fixed expenses, debt payments, and savings targets, then decide how much is left for discretionary spending.

When splurges stay within that discretionary amount and high‑interest debt is being paid down on schedule, occasional indulgence does not usually derail long‑term goals.

Is there a risk that “treating yourself” can quietly turn into lifestyle inflation?

Yes. Personal finance educators warn that repeated splurges can reset what feels “normal,” leading people to adopt higher ongoing expenses instead of one‑time treats.

This lifestyle inflation can crowd out savings and increase financial stress without providing a matching increase in happiness.

To avoid it, experts recommend keeping most indulgences as occasional or one‑off experiences and regularly reviewing budgets so that new recurring costs are added only with care.