Spenders

Spenders is a general term used to describe individuals who allocate a substantial portion of their income to current consumption rather than saving or investing. In economics and consumer behavior, spending propensity or the marginal propensity to consume describes how likely a person is to spend additional income. The term can carry neutral or negative connotations; historically, spendthrift refers to someone whose spending is excessive and imprudent, but the label spender itself does not inherently imply wastefulness.

Common patterns associated with spenders include prioritizing discretionary purchases such as experiences, fashion, or technology, alongside essential spending on housing, food, and utilities. Spenders may be influenced by social pressures, marketing, access to credit, and psychological factors like impulse control, novelty seeking, or status signaling. Informal classifications include compulsive or impulsive spenders (potentially at risk of financial stress), selective spenders who prioritize certain categories, and frugal spenders who deliberately limit nonessential purchases.

Implications for individuals involve balances between enjoyment and financial health. High or poorly managed spending can lead to debt and liquidity problems, especially in the face of income shocks, while moderate, well-planned spending can support well-being and fulfill personal goals. In household budgeting, partnerships may designate roles such as spender and saver to coordinate spending with long-term objectives, using tools like budgets, tracking, and financial planning.

Macroscopically, consumer spending is a major driver of economic activity and can influence business cycles and growth. See also consumer spending, savings, budgeting, debt, spendthrift.