Wallets & Weaknesses - The Teen Psychology of Spending

Our project will examine teenagers' spending habits and the psychology behind them. We will first create an experiment, then, along with research, we plan to create an app that will help adolescents manage their money.
Gwyneth Gao, Likhita Karwade
Westmount Mid/High School
Grade 10

Problem

Research Question:

  • How do students/teenagers view money, and how do their emotions and financial literacy impact that? How are their financial habits and literacy influenced by their home situation?

Primary Research Question:

  • What psychological factors influence teenagers' spending habits?

Secondary Questions

  • How are teens’ spending habits affected by their environment and external influences?
  • How are teens’ spending habits connected to their background and experiences?

Method

Project Overview

Project Title Wallets & Weaknesses – The Teen Psychology of Spending Team Members

  • Likhita
  • Gwyneth

Short Summary. This project examines teenagers’ spending habits and the psychological factors that influence them. Through an experiment and supporting research, we plan to better understand how teens make financial decisions. Based on our findings, we plan to design an app that helps teens manage their money more effectively.  Summary: Our project explored the spending habits of teenagers ages 13 to 17 and the psychological factors that shape the way they make financial decisions. By combining an experiment with supporting research, we aim to understand both what teens spend their money on and why they make these decisions, including how emotions, social influence and stress affect their behaviour. We will analyze patterns in spending and decision-making to identify common challenges teens face when managing money. Using the insights of our findings, we plan to design a website that will track their spending and help teens make more thoughtful financial choices. Primary Research Question What psychological factors influence spending habits in teenagers? Secondary Questions

  • How are teens’ spending habits affected by their environment and external influences?
  • How are teens’ spending habits connected to their background and experiences?

Objectives: The purpose of this experiment is to examine how students from different age groups spend money and how their decisions are influenced by emotions and external factors.

Hypothesis :  We hypothesize that most teenage spending will be directed towards food and transportation, as these are essential items often purchased daily. Spending will also probably increase when the environment is ranked high, and items are cheap, resulting in lower emotional levels and a tendency to purchase. This combination of good purchasing factors can result in a low-risk comfort zone where a majority of the participants will purchase from. We also expect that spending decisions will be strongly influenced by peers and social environments, causing teens to make purchases based on social pressures and trends. This will likely also drive more people to spend during the holiday season (December) on gifts or in late October for Halloween. Additionally, having a set budget is expected to encourage participants to think more carefully about the difference between wants and needs, leading to more intentional and responsible spending choices.

Research Design

Study Type and Rationale

Study type (e.g., survey, experimental, mixed methods)

  • Experimental (using surveys)

Rationale for chosen design We chose an experimental design supported by surveys to better understand real spending habits and attitudes. This approach allows us to identify common financial challenges faced by teens around us and develop solutions based on their needs.

Population and Sampling

Target population Teenagers (ages 15-18) Inclusion criteria

  • Students at our school
  • Signed consent form
  • Willingness to participate

Exclusion criteria

  • Lack of parental consent

Sampling method Participants will be given different budget limits (under $20, $50, or $100) based on the typical spending ranges of our participants to observe how budget size affects spending behaviour. Sample size target Approximately one-third of our population

Variables and Measures

Independent variables

  • Budget limit (under $20, $50, or $100)
  • External influences (peer pressure, advertisement, social media)
  • Emotional state (stress, excitement, boredom)

Dependent variables

  • Amount of money spent
  • Type of purchases made (needs vs wants)
  • Spending decisions (impulsive vs. planned)

Control variables

  • Age range
  • Time allowed to complete the surveys

Operational definitions

  • Variable 1: Budget Limit
    • The budget limit is the fixed amount of money assigned to each participant in the spending scenario ($20, $50, or $100), which determines the maximum amount they are allowed to spend during the experiment.
  • Variable 2: Spending Behaviour
    • Spending behaviour is measured through participants’ survey responses, including how much of the budget they choose to spend, the types of items selected (e.g., food, transportation, entertainment), and whether the purchase is influenced by others or a want/need.

Instruments and scales

  • Survey items:
    • Date of purchase
    • Proof of purchase
      • Picture of receipt (optional)
      • Price and item name
    • Emotions/Feelings upon purchasing the item(s)/product(s)
      • Scale (Thrilled - regretful) and explanation
    • Describe your surrounding environment
      • Scale (opposing - supportive) and explanation
    • What influenced you to purchase this item/product?
    • (Phase 2) How did having a limit affect your financial choices?
  • Validated scales:
    • Likert scale (1-10)
      • Measures participants’ emotional state of the purchase and their surrounding environment

Data Collection

Procedures

Recruitment plan Participants will be recruited from Grades 10-12 within the school. Students who are willing to participate will be informed about the study Consent process All interested participants will be provided with a printed consent form approved by the principal. The form will include an overview of the study and require a parent or guardian’s signature, as well as a preferred email address for communication. Data collection steps

  1. Participants will receive an email containing instructions and a link to a Google survey
  2. Each time participants make a purchase, they will complete a short form describing the purchase

Receipt or transaction logging protocol (if applicable) Participants will be asked to provide proof of purchase by uploading a photo of their receipt in each Google Form submission Data storage and security All collected data will be stored in a Google Spreadsheet, with participants identified only by assigned code numbers. Data will not be shared with others, and any reported results will be anonymous

Quality Control and Bias Mitigation

Steps to reduce bias

  • To minimize survey bias, questions will be carefully designed based on prior research and reviewed to ensure clarity and neutrality

Attention checks and validation

  • Weekly emails will be sent to participants containing new Google Forms or reminders to complete previously sent forms, helping to ensure consistent participation and accurate data collection.

Missing data handling plan All data will be collected directly from participants. If participants have questions or concerns, email communication will remain open. Missing data will be defined as unsubmitted purchase forms and will not be included in the final analysis. This may limit the accuracy of results; however, secondary research data will be used to help support and contextualize findings.

Timeline and Resources

Milestones and Deadlines

  • Milestone 1: Consent Forms Signed — Date: October 9, 2025
  • Milestone 2: Phase 1 Complete — Date: November 10, 2025
  • Milestone 3: Phase 2 Complete — Date: December 8, 2025
  • Final presentation: Date: February 6, 2026

Ethics Risk Management and Appendices

Ethics and Consent

Ethics approval required: Yes Consent form summary

  • Participants will provide consent for their data to be collected and used for this study. All data will remain confidential and will only be shared in anonymized form

Anonymization plan

  • Each participant will be assigned a unique code number. Any data used in analysis or reporting will reference these code numbers rather than participant names.

Risks and Contingencies

Potential risks

  • Loss of data due to technical issues
  • Insufficient data caused by low participation or incomplete submissions

Mitigation strategies

  • Careful use of software to ensure all data is properly saved and stored
  • Regular monitoring of data collection to identify issues early

Backup plans

  • If insufficient data is collected, the project will rely more heavily on secondary research to support and contextualize findings.

Background Research

The Psychology of Spending:

  • Money mindset

  • A mix of beliefs, financial knowledge, and emotions that affect how one handles money

  • Can see money as opportunity or risk/stress

“For some people, finance is like a playground full of opportunities, while for others, it is a long journey with caution signs at every turn”

  • Influenced by spending habits

    • Shaped by experiences, values, beliefs, and upbringing

  • Spending influences

    • Emotions: Stress → impulsive buying; happiness → risk-taking
    • Impulses: immediate desires can override logic
    • Beliefs: fear of running out of money → overspending

  • Types of Spending

    • Emotional: comfort/stress relief
    • Values-based: experiences > possessions
    • Security-driven: saving and essentials

  • Mindset drives financial decisions

  • Awareness helps reduce impulsive/unhappy spending
  • Guides spending aligned with goals and values

What is Unhappy Spending 

  • Teen Money Challenges
    • Teens rarely handle physical money → spending feels abstract, less “earned,” less “spent.”
    • Global issues (climate crises, job insecurity) encourages a YOLO, want-based mindset
    • Parents’ messages about “wasteful” spending can create shame
  • Unhappy Spending and Mindfulness
    • Evaluate purchases by emotional return on investment (joy, connection, meaning vs regret)
    • Mindful spending prevents resentment towards saving
    • Teens should set limits, separate allowances, and focus on meaningful purchases
  • Money and the Future
    • Fear of student loans, unstable jobs, and uncertain futures increases anxiety
    • Education seen as an investment → future income is the biggest asset
    • Practice saving builds confidence, control and reduces anxiety 

Student Input (Anthony):

  • Past Habits:
    • Grew up in an upper-middle-class family → money wasn’t a concern
    • Spent impulsive on recreational items (games, tech)
    • Felt no guilt when friends paid

  • Turning Point:

    • Met a mentor (“jahatma sensei”) from a family with financial struggles
    • Realized personal privilege → adopted frugal habits
    • Developed belief: “I don’t feel good spending money I don’t have”

  • Current Mindset

    • Much more frugal and mindful
    • Experiences guilt when parents pay or friends cover costs
    • Enjoys spending on others meaningfully
    • Makes ethical and value-based decisions (ex. Supporting creators, chooing purposeful purchases)
    • Manages majoy expenses carefully (ex. Laptops, university fees)
    • Shift from impulse to conscious, responsible spending
  • Mindful spending combines emotional, ethical, and financial awareness
  • Personal values guide spending more than convenience or habit

Financial Tips for Teenagers

  • The Problem:
    • Only 23–28% of teens/college students answer basic finance questions correctly
    • Lower-income students have the least financial knowledge
    • Teens rarely discuss money at home or school → systemic gap
    • Spending influenced by emotions, social pressure, and inherited beliefs
  • Spending Challenges:
    • Impulse buying driven by ads and social comparison
    • Teens struggle to distinguish wants vs needs
    • Digital payments make money feel less real → easier to overspend
    • Social media can encourage “keeping up” spending
  • Smart Habits:
    • Start saving early → build long-term security
    • Budget and track spending → focus on needs first
    • Pay your “future self” first → automate savings
    • Invest for growth → long-term thinking beats quick gains
    • Spend in line with personal values → happiness > appearances
    • Practice financial responsibility → chores, allowances, controlled spending
  • Key Takeaways:
    • Financial literacy + mindful habits = control, confidence, and security
    • Teens benefit from reflection, planning, and values-based spending

Budgeting for Teens: Financial Freedom In Your Future 

  • Why Budgeting Matters:
    • Keeps track of where money goes
    • Builds financial habits, discipline, and independence
    • Helps save for short-term & long-term goals (school, car, trips, college)
  • Core Skills:
    • Track income & expenses
    • Separate needs vs wants
    • Set a clear savings goal
    • Review & adjust budget regularly

  • Steps to Start a Simple Budget:

  • Track Income – allowance, part-time jobs, odd jobs

  • Separate Needs & Wants – cover essentials first
  • Set Savings Goal – even small amounts help
  • Use Tools – apps or worksheets to categorize expenses
  • Track Spending Daily – notice habits & patterns
  • Plan for Bills & Emergencies – phone, subscriptions, school costs

  • Review & Adjust – weekly check-ins keep budget realistic

  • Key Concepts:

  • Fixed vs variable expenses

  • Emergency fund = financial safety
  • Early budgeting = more freedom and confidence later

How to Teach Teenagers Good Money Habits | Envision Financial 

  • Why It Matters:
    • Teen years = key stage for developing life skills
    • Strong financial habits build independence and help achieve goals
  • Starting Money Conversations:
    • Connect money to teen goals (trips, car, hobbies)
    • Emphasize “habits” to show money management is routine
  • Focus on the Basics:
    • Open a bank account – first step toward independence
    • Teach monitoring money online (debit card = less tangible)
    • Discuss benefits, safety, growth, fees; choose a no-fee account
  • Pay Yourself First:
    • Automate savings for short-term goals (car, clothes, concert tickets)
    • Encourages budgeting and financial discipline
  • Create a Simple Budget:
    • Track income & expenses
    • Ensure enough savings for goals
    • Use apps, spreadsheets, or online planners
  • Ongoing Education:
    • Introduce complex topics gradually (taxes, investing, debt)
    • Financial discussions should happen multiple times over teen years
  • Start simple, build habits gradually
  • Hands-on involvement helps teens see value of money management

Teens and Finances: What They Need to Know    

  • Key Points:
    • Many teens underestimate real-life costs (rent, taxes, bills)
    • Lack of parent discussions limits financial understanding
    • Early exposure to family financial struggles builds responsibility
  • Skill Development:
    • Cultivate marketable skills to increase earning potential
    • Education and training affect future financial choices
  • Benefits of Financial Awareness:
    • Helps teens make informed decisions about jobs, education, and lifestyle
    • Shapes habits for independence and self-sufficiency
  • Takeaway:
    • Gaps in teen financial knowledge are due to limited exposure, not fault
    • Early conversations, skill development, and real-world awareness foster financial responsibility

Fall 2025 Teen Survey

  • What Teens Spend On:
    • Beauty & self-care (self-expression, trends)
    • Clothing & footwear (brand-conscious, social media influence)
    • Food & drinks (convenience & culture)
    • Technology & media (streaming, apps, social media)
  • Influences on Spending:
    • Social media, celebrities, and influencers shape “wants vs. needs”
    • Trends and peer pressure encourage YOLO or impulse purchases
    • Only 33% have part-time jobs → much money isn’t earned firsthand
  • Behavior Patterns:
    • Emotion- and identity-driven spending
    • Impulsive & convenience-based
    • Awareness of economic challenges may reduce spending slightly
    • Limited understanding of effort behind money → increases impulsivity
  • Takeaway:
    • Teens manage small sums but lack structured budgeting
    • Media, peers, and family shape priorities

Consumptive Behaviour in Adolescents and Its Impact on Financial Management: Case Studies and Practical Implications

  • Teens often spend impulsively due to social, emotional and environmental influences
  • Can affect both short-term money management and long-term financial stability
  • Factors Influencing Consumptive Behaviour
    • Social:
      • Peer pressure and social media strongly shape spending trends
      • Family attitudes toward money influence teens’ values and habits
    • Psychological
      • Impulsivity and low self-control
      • Desire for acceptance 
      • Emotional spending for comfort
    • Economic Factors
      • Easy access to money, sales, and promotions increase spending
    • Cultural and Environmental Factors
      • Materialism = success
      • Easy access to online stores and malls
  • Common Spending Patterns
    • Impulse buying
    • Overspending 
    • Teens commonly buy non-essential items for emotional satisfaction
  • Impact on Financial Management
    • Short-Term Effects
      • Trouble choosing needs over wants
      • Little savings
      • Increased financial mistakes
    • Long-Term Effects
      • Risk of debt 
      • Poor emergencies readiness
      • Weak budgeting and financial skills
    • Psychological Effects
      • Stress, dissatisfaction, and feeling of inferiority
      • Shopping may become a coping mechanism
  • Recommendations:
    • Improve financial literacy through education
    • Raise awareness of the emotional and financial risks of impulsive spending
  • Teens need both money skills and emotional awareness to build healthy financial habits

The Psychology of Overspending 

  • Money does not creating lasting happiness
  • Using money to cope with emotions often leads to stress and unhealthy habits
  • Emotional Spending
    • People buy things expecting happiness
    • The feeling fades quickly
    • Overspending is often emotional, not logical
  • Money and Stress
    • Finances are the #1 cause of stress
    • 77% of households are in debt
    • Stress, shame, and fear, strongly affect money behaviour

  • Money Disorders

    • Money Avoidance
      • Avoid thinking or talking about money
      • Believe money is bad or stressful
    • Relational Money Disorders
      • Hiding spending
      • Depending on others financially
      • Driven by fear or shame

  • Money Worshipping

    • Believes money = happiness 
    • Leads to compulsive buying and overspending

  • Effects:

    • Financial strain
    • Anxiety
    • Family conflicts
  • Solutions:
    • Self-reflection reduces impulsive spending
    • Financial therapy helps connect emotions and money habits
    • Set clear goals and talk opening about money
  • Mindset about money shapes your well-being and spending 

Gen Z Money Moves: How Teens Are Spending, Saving, and Investing in 2025 | by Msjag | Medium 

  • Teens spent $2 billion in 2024
  • Their money choices shape the economy and are linked to mental health, stress and self-care

  • Where Teens Spend the Most

  • Online and retail: Amazon, Target, Walmart

  • Food and Drink: DoorDash, Starbucks, McDonald’s
  • Beauty and Fashion: Sephora, Shein, Nike, Hollister
  • Entertainment and Tech: Apple, PlayStation, Xbox, Steam

  • Experiences and Entertainment: Concerts, amusement parks, cinemas

  • Gaming and digital platforms help teens cope with stress and anxiety

  • Saving and Investing

    • Teens savings increased by $259 million 
    • Common goals: cars, college, travel
    • Teen investments doubled
    • Money apps help teens budget and invest
  • How teens earn money
    • 66 million chores completed in 2024
    • Average allowance: $13.42
    • Increase in part-time jobs and side hustles
  • Giving and Values
    • Teens donated $8 million to charities in 2024
    • Causes include climate action, animal rescue, and food banks
  • Teen money habits are tied to emotions, independence, and future goals

Survey Emails

Hey everyone,

Thank you for filling out the contract and deciding to participate in our science fair experiment. To clarify any confusion, this experiment is looking at your psychological responses to spending money (thoughts, emotions, etc) and spending habits.

For the next 2 months, from October 15 to December 15, we will be sending you weekly emails on Monday with a purchase survey for you to fill out every day of the week. The survey will only take 5-10 minutes maximum. We would greatly appreciate it if you could complete the survey on the day of, but we understand if it takes longer because we all have our own lives. However, please understand that the survey will be based on your emotions during your purchases and may become more inaccurate the longer you wait. The “deadline” for the purchase surveys will be 11:59 p.m. Sunday.

To start this experiment, please fill out this introductory survey. Please complete this by 11:59 pm Tuesday. The first purchase survey will be sent out on Wednesday, if all goes according to plan. https://docs.google.com/forms/d/e/1FAIpQLSdqkh9ewRGBqR667Qfo1xyjK585Kq51miOPjQdIwup6yYT_xQ/viewform?usp=sharing&ouid=115314540344905627763 

Draft email for the first survey: Subject: Wallets & Weaknesses – First Official Survey (Oct 15 - Oct 19)

Hey everyone,

Thank you for filling out the introductory survey! Starting next week, surveys will be sent out every Monday for you to complete based on the items you buy that week.

Please be honest when filling them out. The information is used only for educational purposes and will remain completely anonymous in our data, so there’s really no reason not to be! We understand you might forget sometimes, which can lead to small inaccuracies, but please try your best — something is always better than nothing.

Please complete all surveys for this week by Sunday, October 19, at 11:59 p.m. Each one should take you no more than 5-10 minutes.

[survey link]

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Wallets & Weaknesses – Phase 1 (Oct 20 - Nov 9)

$20

Hey everyone, For this next phase, we’ll be making a few small changes to the experiment. You will now have a weekly spending maximum of $20.

Please do your best to stay within that limit. Of course, if there’s an emergency, it’s completely fine to go over. If you feel that your maximum is unreasonable, please email us to explain why and suggest a more suitable amount.

Friendly reminder: please make sure to read the emails and complete the forms — they really don’t take long, and the emails will get even shorter once we’re all in a routine. The due date for this phase’s forms is Sunday, November 9, at 11:59 p.m., though we encourage you to complete them weekly. Again, please be honest when completing the forms.

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

$50

Hey everyone, For this next phase, we’ll be making a few small changes to the experiment. You will now have a weekly spending maximum of $50.

Please do your best to stay within that limit. Of course, if there’s an emergency, it’s completely fine to go over. If you feel that your maximum is unreasonable, please email us to explain why and suggest a more suitable amount.

Friendly reminder: please make sure to read the emails and complete the forms — they really don’t take long, and the emails will get even shorter once we’re all in a routine. The due date for this phase’s forms is Sunday, November 9, at 11:59 p.m., though we encourage you to complete them weekly.

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

$100

Hey everyone, For this next phase, we’ll be making a few small changes to the experiment. You will now have a weekly spending maximum of $100.

Please do your best to stay within that limit. Of course, if there’s an emergency, it’s completely fine to go over. If you feel that your maximum is unreasonable, please email us to explain why and suggest a more suitable amount.

Friendly reminder: please make sure to read the emails and complete the forms — they really don’t take long, and the emails will get even shorter once we’re all in a routine. The due date for this phase’s forms is Sunday, November 9, at 11:59 p.m., though we encourage you to complete them weekly.

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Wallets & Weaknesses – Weekly Form Reminder Hi everyone, For this week, the experiment will remain the same as last week; we’re still in Phase 1. This email is just a reminder to please complete your weekly forms. We understand that everyone is busy, but these forms take no longer than five minutes to fill out. In fact, the longer you wait to submit them, the more time it’ll take to catch up later. Our expectations aren’t high; even one-sentence responses are perfectly fine! This may not apply to everyone, especially if you haven’t made any purchases recently. However, we do know that several participants have spent money but haven’t yet submitted their forms, so please make sure to do so as soon as possible. If you have any concerns about your price range, expectations, or any other questions, please email  karwad.li@wcs-g.com and cc. gao.gw@wcs-g.com.

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Wallets & Weaknesses – Phase 1, Weekly Form Reminder Hey everyone, This is the 3rd week of phase 1. The experiment is the same as before: stay within the budget, and fill out the purchase surveys. To review your weekly budget, check the last email you received from us.

Just a reminder: since we go to the same school, we’ve noticed that some of you have been making purchases but haven’t filled out the form yet. Please take a moment to complete it when you can. We really appreciate your help. Remember, this is due on Sunday, November 9th, at 11:59 pm.

The link to the form you should complete

If you have any concerns about your price range, expectations, or any other questions, please email  karwad.li@wcs-g.com and cc. gao.gw@wcs-g.com.

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Hey everyone, Our next phase for this experiment will be postponed due to the lack of responses, so for the next 2 weeks, the experiment will still be the exact same as before: Stay within the limit of our experiment and log your purchases.

Reminder: READ our emails and COMPLETE the forms — again, they will not take long. 5 minutes maximum. This is not a difficult task to do. Please finish them weekly, and be honest.

[survey link]

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Hey everyone, This is our final week of this experiment! I hope everyone enjoyed it, and please complete your last week of Google Forms! The process and form are the same, except for our final question! Please take some time this week to fill it out!

Purchase Survey: Final Survey:

Thanks, — The Wallets & Weaknesses Team Likhita and Gwyneth

Analysis

Analysis of the Experimental Data

This graph is a representation of the number of responses compared to the month. We have used a bar graph because we are comparing the quantity of responses for each month. The independent variable is the month: October, November, and December. The Dependent Variable is the number of responses received each month. October has the most responses, with 25 total, and December has the fewest, with 1 per month. From October to November, the response rate fell 68%, and from November to December, the response rate fell 87.5%. This equates to a drop in 17 responses during the second month and a drop in 7 responses during the third month. Our project was dependent on teenagers providing us with data so we could analyze and use their data. This graph shows that many responses were collected in October, indicating that most of our data was collected in that month, with some additional responses in November. We received more responses in October due to the motivation of the survey being a new and exciting concept. After a while, the students became less motivated due to increased school activities and a possible loss of interest. The sample size from October is the greatest, because it has the largest number of responses. The November sample size is the smallest, but it still has a range of responses. December is the worst sample size because it only has one response, making it unreliable. Since this graph only covers 3 months, we can’t tell anything about future involvement and engagement trends. There is also bias for certain grades, as they have a higher response percentage compared to other grades. This graph shows how the participants had a lack of interest as the experiment progressed, providing us with less data than anticipated. We will use most of our October data, as that contains the most diverse and plentiful data. In a future study, we would send more consistent reminders and make sure that the responses don’t have such a large difference. We could also split it up into weekly collections, making it easier to find the external cause of fewer responses. 

The graph represents how the surrounding environment affects the purchaser's emotions. We used a bubble graph to represent the frequency of each combination of the surroundings and emotions. The independent variable is the surrounding environment, because an individual's emotions are heavily reliant on their external environment, which causes the emotions to be the dependent variable. The pattern in this graph is the great clustering effect occurring at the bottom right side of the graph. This represents the comfort zone, an area where individuals often perceive themselves before making any purchase. This zone has a pattern where higher surroundings equate to lower emotional levels. The densest bubble is (10,2), which follows the trend mentioned above of the comfort zone. The biggest outlier is in the bottom left corner, marking 0 emotions and 0 surroundings. This outlier is very far from the central cluster of data, so it is not significant for our final data analysis. There are 2 more outliers present at the top right of the graph. These bubbles represent how higher surroundings do not always equal a positive emotional experience, giving us an insight into unfavourable purchases. The greatest density is 6 responses at (10,2), followed by 5 at (7,3) and (8,2), 2 at (9,2), and 1 for everything else. In the hypothesis, we discussed how there would be greater responses in the zone of higher surroundings and lower emotions. This graph highlights the accuracy of our hypothesis and also shows the outliers we overlooked when forming it. This trend occurs due to the comfort zone created mentally by teenagers; this area on the graph symbolizes a safe and low-risk purchase. This is a good example of emotional control displayed by the teenage individuals. This data is gathered from each survey entry filled out by the participants. This is genuine data because it was extracted from the confidential survey we used. This graph shows the comfort cluster, but it doens’t mention price or the item. Due to this, we cannot claim that the individuals are financially responsible, but we have figured out their emotional reasoning when approaching a purchase. This graph supports our hypothesis because it outlines how most of the purchases fall into a common comfort category for the majority. Next time, while conducting this experiment, we would include a scale with decimals, allowing the individual to input their exact emotions and surroundings in that moment.

This graph illustrates the comparison between the purchase price and emotions. We used a bubble graph to display this data because it shows the frequency of certain responses, and it displays the cluster of comfort clearly. The independent variable is price, as the price differs for each purchase and affects the participant's emotions. The dependent variable is the emotions because the participants' emotions change depending on the price of the purchase. The comfort cluster is in the bottom left corner of this graph, symbolizing that most purchases are made with high emotions and low prices. The most common outliers occur when emotions or prices are comparatively higher and farther from the cluster of common responses. The two biggest outliers have a high emotional level or a high cost, differentiating them from every other purchase. These gaps are notable because they tend to have a higher emotion linked to them, creating a sense of regret or nervousness regarding the purchase. The price compared to the emotions relates to our hypothesis because it covers the frugal mentality, and how people react positively to a discount, deal, or lower price. We expected many of the responses to be very much on the lower side of prices, but there was a significant number that went above our hypothesized budget range. In the research articles we read, many teenagers paid attention to the price when purchasing something, and they often looked for a discount. This proves that teenagers are financially responsible, with the exception of the outlier purchases. The data is gathered from the students who participated in our survey, and the prices are taken from a proof of purchase, such as a receipt. The emotions could vary due to the time difference between when the purchase was made and when the survey was filled out. While these can be an important factor, we tried our best to encourage the participants to fill out the survey on time before a change occurs in their emotional state. Due to the uncontrollability of the response time, there are certain limitations to this data. Furthermore, the lack of participation later on during the experiment could have impacted the participants' emotions. Next time, we would consider making the survey more accessible through other tools and making sure that the results would not be affected by a difference in time or participation.

The price compared to the surroundings graph is a representation of how the price of a place could impact the surrounding environment and vice versa. We have demonstrated this through a bubble graph because it shows the average cluster where many people's responses and views collide, showing a visible trend that everyone subconsciously follows. The common trend is the cluster of bubbles at the top left of the graph, highlighting the specific surroundings in which most teens tend to purchase something. While this graph has the same prices as the price compared to the emotions graph, there are only two outliers, and every other bubble flows into the main cluster. Our hypothesis mentioned how higher surroundings would generate greater purchases, which was proven true through this graph. This is because a higher surrounding rating is usually created by having a supportive atmosphere, such as encouraging friends or a cafe with a friendly vibe. The data was obtained through the experiment survey, but there could be issues with the responses due to the difference in time. The surrounding environment is what the environment seems like before and during the purchase, but many of the responses were filled out after the purchase. This could impact the results because the quality of the product purchased could raise or lower the surroundings rating. The graph represents numbers, which limit our understanding of the environments and reasons why anything was purchased. It also limits our ability to understand when the survey was completed and how the question was interpreted. This graph supports our hypothesis of a more supportive and positive environment driving purchase decisions. If we could fix anything, we would make the graph bubbles smaller, because they overlap and hide each other.

This graph shows the relationship between every month and the average price purchased each month. The independent variable is the month, as it was fixed for the whole experiment, and the dependent variable is the price because it changed throughout the experimental timeframe. This graph contains data from the responses submitted by the students, meaning a difference in response rate can significantly alter this data. From this data, we can infer that during November, the participants spent the most money, coming in at around 46 dollars. After that, it is October with an average purchase price of 28 dollars. In October, we had the highest participation rate, yet it didn’t have the highest average purchase price. This graph can represent a trend of more important purchases being reported or show how the most expensive purchases are made outside of festive seasons. Between the first and second months, there is a 16-dollar difference for the average purchase price, and between the last two months, there is a 35-dollar difference. In percentages, there is a 34% increase between the first and second months, and a 78% decrease between the second and third months. In our hypothesis, we believed that the most expensive purchases would occur during the holiday season, due to discounts and gift-giving. This graph opposes our hypothesis because it demonstrates how the most expensive purchases occurred in the middle month, where they were least expected to happen. This may be due to seasonal sales as stores clear out their Halloween items and fall collections for a Christmas and winter collection. During December, students face more academic pressure, driving their focus and energy into academics over product consumption. In the month of Novemeber there were 3 purchases that raised the overall average purchase price by a lot, which could affect the quality of the data. We went back and double-checked all the data, and it isn’t that big of a discrepancy, making it usable and reliable data. Something we could improve is asking why they bought that product during that month, which would help us better understand the psychology behind spending money on higher-value goods.

This graph exhibits a comparison between the price and emotions when on a budget. We used a line graph for this graph because we wanted to clearly demonstrate the comparison and relationship between emotions and price when on a budget. The independent variable is the budget, as it influences both the emotional levels and price point when making a financial decision. The dependent variables are the price and emotions associated with each purchase, as they change when people have a set budget. In our experiment, we had 3 budget groups that we sorted students into. Group one was the 20-dollar budget, which is the left side margin of the graph. The trend for this group is that their average price was 24 dollars, which went over their budget, proving that 20 dollars isn’t a sustainable budget for a teenager. The average emotions on this graph are an average of 3, indicating that this group of participants didn’t make purchases based on their emotions, and that they remained calm even during impulsive periods. In the second budget group, all the participants got a budget of 50 dollars per week. Their results were a little shocking as the average purchase price was around 18 dollars, more than half their set budget. The emotions for this group were also a little lower, showing signs of more emotional purchases and possibly impulsive behaviour. The last group had a budget of 100 dollars, which was the biggest budget of the entire experiment. The average purchase price for the participants from this budget group is 47 dollars, which is 62% higher than the previous budget group. The average emotional level was 3.3 for each purchase, demonstrating responsible emotional purchases and considerably less impulsive decisions. The difference in price between each group of participants in the set budgets in percentages is a 25% decline between the first two groups, and a 62% increase between the next budget groups. The emotions are in a very similar range, with minimal differences between each budget group's results. This data is all from the surveys we collected, but the participation could create bias or tendencies towards a certain budget. The average price of the 20 budget groups is higher because they had more responses, and the participants tended to spend higher amounts. While the number of responses may differ, therefore affecting the overall average of our results, this data is credible, and we made sure that every group had a minimum number of responses.

This line graph demonstrates the comparison of the average price, emotional level, and surroundings across several defined spending categories. We made these categories after analyzing the data and realizing that every purchase falls into one of these categories: meals, beverages, transportation, school, clothes, combination, snacks, and other. The dependent variables of this graph are the categories, as they remain constant throughout, and the dependent variable responds to them. This graph has 3 dependent variables: the average emotional level of the purchaser, the average surroundings of the environment where the purchase occurs, and the average price of a product purchased in that category. The most visible trend is how the price rises steeply from beverages to school and clothes. The most expensive categories are school, clothes, and combinations, as presented on the graph. The cheapest categories to purchase are beverages, snacks, and other items, as the average price amounts to 12 dollars or less. The most impulsive purchases occur when the emotional level is the lowest, and the average price is above 20 dollars, and the most prominent example is the combination category. Beverages can also be considered an impulsive risk, but since the average purchase price is lower, they are considered a low-risk purchase. The majority of the categories have an average surrounding rating of 8 or more. This is because they often go with friends or spend money during a sale or with a discount. Some participants also measured their surroundings in vibes, causing cafes and malls to earn high surrounding ratings. The graph connects to our hypothesis because the participants purchased goods in the categories we mentioned, but we had to define more categories to clearly analyze the trends of teen spending. They purchased goods in these specific categories because they are affordable, accessible, and trendy. This was analyzed through all purchase responses the participants submitted, and carefully organized and calculated into data sets. This graph shows a big overview of the factors that go into making a financial decision, and it breaks down the score of each category. This graph reflects some of our hypotheses, but it also displays the data on a deeper level with more specific categories catered towards the final data we received.

Shortened Analysis of the Experimental Data

This graph represents the monthly response rate, and it is demonstrated in a bar graph to emphasize the gaps between the response rates per month. The independent variable is the Month, and the dependent variable is the number of responses received that month. The response rate dropped 68% from October to November, and another 87.5% from November to December. The data from October is the most reliable because it has the highest number of responses, therefore providing us with more data to analyze. The decline in responses could be due to increasing academic pressure, vacation, and a lack of interest. 

The graph represents how the surrounding environment compares to the purchaser's emotions. We used a bubble chart to represent the variety of responses we received and the frequency of each one. In the bottom right corner, the bubbles form a cluster, which is the cluster of comfort. It is a zone where a teen is able to purchase something because the factors are positive. This supports the comfort cluster mentioned in the hypothesis because it follows the same idea represented through this trend. We can’t call these financially responsible actions; we can call them emotional control and being less impulsive.

The Price compared to emotions graph is another bubble graph we have used to represent our findings. The independent variable is the price of each purchase, and the dependent variable is the emotional level of each purchase. In this graph, there is another notable cluster at the bottom left, where the comfort zone is defined as low cost and low emotions. This is an implies that most teens tend to spend when they are happier and it is well within their budget, just like our hypothesis. There were some outliers where it was not an emotionally rewarding process, and another one where it was outside of the budget. These outliers are common with unpredictable spending habits, but the vast majority of participants tend to stick to the zone of comfort.

This bubble graph represents the price compared to the surrounding environment, with the colored bubbles representing the frequency of each response. The independent variable is the price of each purchase, and the dependent variable is the environment in which it was purchased. The cluster of comfort is in the top left corner, emphasizing the appeal for high surroundings and low prices. There are 2 outliers, and most data points cluster around the comfort zone. This supports our hypothesis, where we mentioned that positive environments would drive purchases. The limitations of this data are that we don’t have the exact surroundings before purchasing, which could affect our final data.

In the month vs average price graph, we compared the average price spent in that specific month across all 3 months. The independent variable was the month, and the dependent variable was the average purchase price in that month. November had the highest average price with $46, and December had the lowest with $11. The difference between the average price in the first two months was an increase of 34%, and the difference between the last two months was a 78% decrease. This opposed our hypothesis’s idea of increased spending during the seasonal months, with the results showing the complete opposite of what we expected. The most probable causes for this spending pattern is end of holiday sales and stores shifting from fall collections to winter collections. Due to our data collection method, we weren't able to find the exact reasons for the expenditure, giving us room to improve in the future.

The following graph represents the average price and emotions per group. The independent variables are the individual budget groups, and the dependent variables are the average price and emotions. The $20 group had an average price of around $24, which opposed our hypothesis of sticking to the provided budget. The $50 budget group had an average price of $18, which was very unexpected and supported our experimental hypothesis. The $100 budget group had an average price of $47, aligning with the hypothesis we theorized. The emotional level for all 3 budget groups was around level 3, except for the $50 budget group, which had a slightly lower emotional level. Through this graph, we recognized that the price of a purchase impacts the budget more than the emotions. There could be a slight discrepancy between the average amounts due to an unequal response rate, but after careful analysis, it wasn’t big enough to be unreliable.

The last graph is the spending categories graph, where we analyzed all of the purchase factors across 8 categories. The independent variables were the 8 distinct categories we derived, and the dependent variables were the average price, emotional level, and surrounding environment. The 3 categories with the highest average purchase price were school, clothes, and combinations. The 3 categories with the lowest prices were beverages, snacks, and other. The average surrounding rating for each category was above 8.5, which indicated that most surroundings were positive purchase factors. The emotional range showed a little more variety, with cheaper and more satisfying buys resulting in lower ratings. This supports our hypothesis that teenagers spend money in specified categories, but we had to elaborate and deepen our understanding of their purchasing psychology. 

In our experiment, we had three main types of variables: controlled, manipulated, and responsive. The controlled variables were the survey formats, the scale values, the data collection method, the assigned budget groups, the age range, the time required to complete the survey, and the weekly survey. The manipulated variables were the phases, because at the start, the participants didn’t have a budget, but later on, in phase one, they were assigned a budget. Our responding variables were the purchase prices, the emotional rating of each purchase, the surrounding environment rating of each purchase, and how the budget affected their financial choices.

Conclusion

Hypothesis Match

Overall, our results partially support our hypothesis. We predicted that most teenage spending would go toward food and transportation, and this was supported, as these categories were purchased many times throughout all groups, especially in November. We also expected that more supportive environments and lower prices would increase spending by creating a low-risk “comfort zone,” and this was supported: participants were more likely to buy items when their surroundings were positive, and prices were low. However, our prediction that spending would decrease with a budget was only supported in certain groups. The $50 group showed the strongest support, becoming more mindful and wanting to spend less when purchasing. The $100 group showed moderate support with our hypothesis, where many spent similar amounts to before, but due to a large variation in emotional range, they did not entirely support our hypothesis. The $20 group did not support this part of the hypothesis, as many participants actually went over the budget and were more impulsive with their purchases. We also predicted lower spending in November, as it is between the holidays, but instead, overall spending increased. There were also outliers in every data set, which showcases how each participant has their own comfort zone. 

Key Findings

We observed some common spending patterns throughout the different phases of our experiment. In Phase 1, there was no budget for the student’s spending, and the average purchase price was 29.50 dollars. In Phase 2, we assigned each student a budget that incorporated their normal spending, and the average purchase price was 29.50 dollars. The emotional range varied very slightly from Phases 1 & 2, with the averages being 2.875 and 3.038, respectively. The surrounding environment rating had a bigger difference, with the Phase 1 average being 7.75 and the Phase 2 average being 8.23.

We had 3 different budget groups during our experiment, with budgets ranging from $20 to $100. The $20 budget group had an average purchase price of 24.56 dollars, which means they went over their budget by around $4. The $50 budget group had an average purchase price of $18, which was highly unexpected and amounts to a little more than half their original budget. The $100 budget group’s performance supported our hypothesis, as their average purchase price was $45, which we expected. The most common expenses were food and beverages, with the occasional entertainment purchase.

In the Fall 2025 Piper Sandler Survey, the highest expense category was beauty and self-care, followed by clothing and footwear. In our survey, the most expensive category was clothing and footwear, and food and drinks were the most common category. While the food and beverage category is relatively more affordable, expenses can compound quickly, causing long-term financial impacts. These are often bought because of online trends and influences, as well as peer pressure. 

Emotions & Surroundings

In our analysis, we observed a comfort cluster, which we defined as a low-risk zone where most teens would purchase a product. These clusters usually occur around high and low points on the graph. In our surroundings versus emotions graph, they were in the top left corner, signifying that most students would purchase an item if it had a high enough surroundings rating and low emotional level. This trend also occurs in the surroundings versus price and emotions and price versus surroundings graphs.

The comfort cluster is created by everyone's conscious money mindset, which is how they view money. The average teen views money as either a risk or an opportunity, and they tend to purchase goods in their comfort zone to have a smaller risk margin. One of the biggest influences is how success is associated with materialistic values, causing teenagers to spend more money to display success. In the data we collected, there were some outliers, which indicated rare occasions of lower satisfaction levels and emotional spending decisions, such as retail therapy. 

Influences & Monthly Trends

While there weren’t any major purchases influencing social media trends during our experiment, there is always pressure from friends, family, and the school community. In October, there was high spending and involvement with the survey, more holiday-related expenses, and results similar to our hypothesis. During November, the average purchase price increased by 34%, which was unexpectedly high. The possible causes for these purchases could have been seasonal and festive collection sales, creating comfortable, low-risk financial situations. In December, we had the lowest number of responses and purchases, with the average purchase price dropping by 78%. There were very few holiday-related purchases, but many participants were on vacation and break, making budgeting more complex.

In the study about consumptive behaviour in teenagers, they mentioned a YOLO mindset, which can lead to irresponsible financial habits and future mental disorders. In a you only live once mentality, many individuals focus on a joyous and enjoyable life. Teenagers in this mindset don’t realize the consequences of not understanding their finances and how education is an investment.

Budget Impact (Phase 2 Specific)

Many students reported no direct effect of the budget on their mindset, but some participants mentioned being more money-smart and cautious. Many participants also said, “I feel more aware and attentive,” signalling that budgets reduce impulsive spending habits. The $20 budget group went over budget with their average purchase price, and they had a scattered emotional range. The $50 budget group had a smaller average purchase price, but they had a lower emotional range, implying more emotional purchases. The $100 budget group had the highest emotional range, signalling stability, but they also had the highest average purchase price.

Budgeting has been proven to help build discipline and good financial habits, helping with financial independence and goal accomplishment. Learning how to budget from early on will enhance your freedom, confidence, and discipline in the future.

Research Connections

Money Mindset & Emotions

A money mindset is a mix of beliefs, financial knowledge, and emotions that affect how one handles money. When people spend money based on impulse or emotion, they tend to think about the ROI, which is the return on investment. They consider any purchase as an investment, and the satisfaction or joy they get from it as the return. This can encourage unhealthy spending behaviour and habits, and can be used as a coping behaviour in some scenarios. To prevent this, individuals should set limits, learn and implement from their mistakes, and track and manage their expenses.

In our student input, Anthony said that he faced a lot of influence from his friends, family, and social media. When he encountered someone he would consider a mentor, his mindset shifted from having to please his impulses to living a more frugal and grateful life. He had a self-sustaining mindset and made more ethical and value-based decisions while enhancing his money management skills. The Piper Sandler survey also suggested that awareness of economic issues can cause teenagers to spend less and be more wary of their purchases. Since our experiment was conducted in an era where many economists warned of a recession, many teens could be affected by a saving mindset and social media warnings.

Real-World Application: Coding Solution

The App’s Purpose & Audience

We created a website with a goal to assess purchases, manage emotional spending, and give outputs based on our experimental data. Through this website, any individual would be able to input the 3 factors of a purchase and receive a response that has been interpreted through the experiment data. The target is teenagers because we used their emotional, financial, and habitual data. We are also more centred around gifted kids as they have more awareness and can reconsider a decision when hinted at. The inputs we need to properly run this are the price, emotion, surroundings, budget, and product category. 

Key Patterns Coded From The Data

We coded the main trends and patterns from our data into if statements to evaluate each purchase through our website. When the price is greater than 45, and the surroundings are high, it signals a slightly impulsive and regrettable purchase according to our past purchase data. If the emotions are between the range of 2 and 5 during any purchase, it means that the individual is emotionally stable and in the right headspace to make this financial decision. We also sorted the data out into categories, letting us decide the lowest-risk and highest impulse categories, such as snacks, beverages, and meals. We also identified that transportation purchases greater than $20 are often regretted, and made that a condition in our purchase evaluation website.

Exception Decision Rules

We also had some exception rules placed to make sure that there would be no wrong advice from the evaluator. If the price was greater than the remaining budget, it would not be worth it, as it would amount to debt, not a financial purchase. An emotional spending warning is issued when the price and emotions are at a higher level, because in our past data, it has been a common trend. We also have category-specific thresholds, because each category has different limits and price points that we need to take into account. 

Scoring System

As a final backup assessment system, we decided to implement a point scoring system that would give each purchase factor, as well as the budget percentage and category weight. The category weight is how much each category contributes to the result of the final purchase, which we calculated manually by looking at the most common and low-risk categories. The formula we used is: Budget Percentage (15%) + Price (30%) + Emotions×10 (20%) + Surroundings×10 (20%) + Category weightx10 (15%). 

Overall Statistics

The total average purchase price throughout the experiment was $29.25, with a median price of $13. We didn’t use these prices as a benchmark because we had some high spend events and some low spend events, and we had to consider those due to the wide range of purchase prices. We did the same for the average emotional rate of 3 and the average surroundings rate of 8.1.

Limitations

Our experiment was well conducted, but we experienced some data limitations. The biggest limitation was the survey responses; the response rate was uneven, and the questions were a bit open-ended. There was also a time limitation, as we never knew when the participants would fill out the survey and how the time difference would change their results. Our scope limits were that we only had high school students from one school of gifted students, and that everyone in that school environment had similar ideologies. As the experiment continued, the engagement percentage dropped significantly, because finance is seen as a boring subject, but we need to learn more about it earlier on to be more successful later.

Future Work

If we were able to do this project again in the future, we would like to reconduct this experiment to include a larger population, with more schools and longer phases for more diverse results and data. We would also add some questions to our survey, including when they had purchased the items and whether the participants thought it was a want or a need purchase. Additionally, we think it would also be interesting to take into account the specific trends that are going on during the experimental phases and analyze how they might have affected spending habits. To continue on with this project, we would like to create and test an actual app that teens can actually use to help with their budgeting and even integrate collected data to create more tailored advice for the specific user, rather than the demo website we have created right now. 

Citations

Works Cited

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Acknowledgement

I would like to acknowledge the following people for all their support throughout our project. 

Mrs. Lai - Thank you for planning and hosting Westmount’s Science Fair. Mr. Graeme Finlay - Thank you for supporting and approving our project and experiment. The Judges - Thank you for listening, evaluating, and asking questions about our project. Our parents - Thank you for supporting us and helping us make our project come true.