Top 5 Black Friday Behaviour Psychology Traps: Why Saving Beats Shopping—Start Your Journey with Stoa's Saving Score.

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Black Friday deals are addictive and many a times we regret spending too much on things we might not really need.

If you find yourself in a situation where you feel under pressure from Black Friday offers being marketed to you. Below are ways to avoid Black Friday traps and gain back control.

• Pause and ask, “Do I really need this?”
• Compare prices outside of the sale window.
• Stick to a budget and shopping list.
• Remember: Saving is more rewarding than overspending.

There are 5 top behavioural psychology insights explaining why we fall into the Black Friday trap.

Insight 1: Scarcity Bias

• What it is: We fear missing out on limited-time deals ("Only 2 left!" or "Sale ends tonight!") and feel pressured to act fast.
• Why it works: Scarcity triggers a sense of urgency, making us prioritise short-term gains over long-term financial goals.

Insight 2: Anchoring Effect

• What it is: Our decisions are influenced by the "original" price shown next to the discounted one, making the discount look more valuable.
• Why it works: Seeing "Was £500, Now £250" makes the £250 seem like a bargain, even if the product was never worth £500.

Insight 3: Loss Aversion

• What it is: We hate losing out on a "deal" more than we value saving money, so we make irrational purchases to avoid regret.
• Why it works: Promotions like "Deal expires in 2 hours!" exploit our fear of loss to make us buy impulsively.

Insight 4:  Herd Mentality

• What it is: Seeing others shop in a frenzy or “X number of people have purchased this item” makes us feel the need to join in.
• Why it works: We naturally mimic others’ actions, assuming their decisions are correct, even if we don’t need the product.

Insight 5:  Overvaluing Discounts

• What it is: We focus on the percentage saved rather than the actual need for the product. A 70% discount feels irresistible even if it’s on something unnecessary.
• Why it works: Discounts give a sense of victory, activating dopamine, which tricks us into thinking we’re making a good decision.

We at Stoa have built the world's first Saving Score. Our proprietary algorithm is based on three key pillars to protect our customers who are checking their Saving Score with Stoa, to start their saving journey or to improve it. The three pillars of our algorithm are as follows:

Pillar 1: Income Retention
Pillar 2: Income Allocation
Pillar 3: Regularity

You should give Stoa Saving Score a try. Check your saving score via this link and share on social media and via Whatsapp and text to get your friends and family to try as well.

https://app.savingscore.stoa.money/

If you have any feedback to help us make Stoa Saving Score better please let the founders know directly: Sam Goodenough: sam@stoa.money (CTO and CoFounder) or Mike Saraswat: mike@stoa.money (CEO and CoFounder).

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Written by: Mike Saraswat
Date: 1st December 2024