Investigating the Influence of Personal Finance on Impulse Buying: An Evidence from the City of Joy Kolkata

Abstract

Impulse buying leads to spontaneous purchases driven by desire, often resulting in unnecessary items, overconsumption, and waste accumulation. Consumers should manage their finances responsibly and make well-informed financial decisions to avoid these issues. This research explores the association of impulse buying with personal finance. Data was procured through a structured questionnaire using Google Forms, targeting 210 respondents from Kolkata. The hypothesis posited that there is no statistically evident relationship between impulse buying and personal finance. Data was compiled, coded, and analysed using SPSS and Jamovi, with interrelationships between variables tested using a structural equation model. The study demonstrates that effective financial management reduces the likelihood of buying on impulses, which is crucial as poor management of finances negatively impacts an individual’s life. It underscores the need for financial literacy to prevent impulse purchases that compromise essential needs. The study recommends financial education courses in schools and colleges to improve financial management and savings habits, thereby reducing impulse buying.