Brits warns to dodge the ‘temperature-premium effect’ during heatwave
Brits warned of ‘temperature-permium effect’ during heatwave. Expert warns of the real reason we spend more money when it’s hot.
- Spending is set to rise as the UK enters a 30°C heatwave.
- Data reveals the link between physical warmth and higher spending, known as the ‘temperature-premium effect’.
- Our Founder offers 5 simple strategies to keep summer spending under control.
With temperatures set to soar to 30°C across the UK this weekend, Updraft warns Brits to keep a closer eye on their summer spending to avoid falling into the trap of the ‘temperature-premium effect’.
Have you ever noticed that your budget seems to melt away as soon as the sun comes out? You’re not imagining it. There’s actually science behind why warmer weather may lead to warmer wallets.
Aseem Munshi, founder here at Updraft, shares practical advice for staying financially savvy this summer with some simple sunny-day saving hacks.
Why do we spend more in the heat?
Aseem explains: “It’s no surprise that we tend to spend more when the weather’s warm. Sunny days often mean more social plans, impromptu outings, and little indulgences like iced coffees or BBQ supplies. But there’s also a psychological factor at play that’s less well known, showing a clear link between being physically warm & overspending.
“It’s called the ‘temperature-premium effect’. A 2014 study found that physical warmth can actually increase how much we value certain products. In simple terms, when we feel warm, it can trigger a sense of emotional warmth, like comfort or happiness, which makes us more likely to see things as worth spending money on.
“So during a heatwave, we’re not only participating in more social activities, but we may actually feel more inclined to spend, which can lead to those extra impulse buys.”
“The goal isn’t just about clearing debt; it’s about building the resilience to bounce back. We provide the tools to help you consolidate the noise, regain your footing, and move forward with confidence.”
Aseem Munshi
Updraft Founder & CEO
How can we avoid this temperature-premium effect trap?
Aseem continues: “There’s no doubt hot weather is great news for retailers, just not so much for the average consumer. Of course, we should make the most of the sunshine as it doesn’t come around often in the UK. Just be mindful not to get swept up in the moment and overspend. A few impulse buys during a heatwave might feel fun at the time, but they can lead to regrets when the skies turn grey again and the card bills start rolling in.”
Aseem concludes with 5 top sunny-day saving hacks to stay cool and financially sensible:
1. “Embrace free outdoor activities while the weather is nice: Swap pricey venues for a picnic in the park, wild swimming spots, or sunset walks.”
2. “Set a ‘heatwave budget’: Just as you’d plan for holidays, set aside a specific amount for hot-weather fun.”
3. “Delay purchases: If you’re tempted to splurge, give yourself 24 hours to cool down and decide if it’s really worth it.”
4. “Keep hydration (and snacks) on hand: Heat can lead to quick decisions, especially if you’re hungry or thirsty. Stay prepared.”
5. “Use cash instead of cards for heatwave spending: Paying with cash can help you stay more aware of how much you’re actually spending, making it easier to stick to your budget and avoid those sneaky impulse buys.”
Final Thought
Want to take control of your money? If you’re looking to consolidate credit card debt and cut down on high interest, download the Updraft app today.
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