Jan 27, 2026
In 2023, the average household spent about $3,933 on dining out and $3,635 on entertainment, according to the Bureau of Labor Statistics (BLS) (1).
Rising prices over the last few years have made even small enjoyments more expensive, and many households are cutting back on big purchases like holiday gifts. Even so, a recent study from Empower shows that 42% of Americans go shopping as a “treat” at least once a month, while 21% of people treat themselves at least once a week (2).
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Imagine Mike and Olivia, one couple who fit the pattern of the “little treat” spenders until they decided to get serious about their budgeting. They built a new ritual to track their spending each Sunday, totaling every purchase for the week so that they can see where their money actually went.
That habit exposed how the “little” impulse buys they indulged in had grown into big annual costs. For example, they were spending $80 a week on takeout — adding up to more than four thousand dollars a year.
If your little treats are getting the better of your budget, here are a few tips on how to restructure your habits and funnel your money towards the things that really matter to you.
How to track your spending
Building new habits can be tough, so a good way to make a habit of tracking your money is to start with low-friction tools that can make the tracking feel effortless.
According to the Consumer Financial Protection Bureau (CFPB), paper or PDF trackers let you record every purchase for two to four weeks, which is long enough to establish a baseline and spot patterns that are easy to miss in day-to-day spending (3).
Once a baseline exists, you can take the next step and move to a simple cash-flow worksheet or try “cash stuffing” for a month so the flow of money becomes visible and category caps feel concrete rather than abstract.
Ready-made templates can speed this setup, and they also reduce decision fatigue because the categories and formulas are already laid out in a clear and practical format.
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After the first month, you can shift from tracking your spending to restructuring it, changing the frequency of your impulse buys rather than eliminating the joy of them forever. In practical terms, that means keeping a couple of social meals out or delivery meals while replacing the rest with planned meals at home.
Many popular budgeting apps give you clarity on how much you have spent on streaming services, and it’s not wrong to cancel a service you’re not using regularly — they won’t say no to allowing you to sign up again.
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Make it sustainable with a real budget
A plan works when it protects joy as much as it protects cash. The 1% rule says a person can greenlight a single splurge up to 1% of annual income.
This occasional reward fits inside the broader budget, so a $70,000 salary would allow a one-off purchase up to about $700 with a clear conscience. The New York Times described the rule as a “pause button” for impulse buys and a way to curb overspending through mindful limits, which keeps wants from crowding out needs (4).
In addition to making space for living your life, you can get the most out of your money by channeling those splurges toward personal growth. Jordan Grumet, a psychologist and writer, says that lasting satisfaction comes from spending that helps a person become a fuller, more purposeful version of themselves — not chasing the stuff that quickly fades (5).
In practice that means keeping one ritual, like a Friday dinner out, then asking whether the next treat supports skills, relationships, or health before tapping into the fun fund. When the answer is yes, the purchase delivers pleasure in the moment and progress over time, which turns a budget from a list of limits into a tool for intentional living.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
U.S. Bureau of Labor Statistics (BLS) (1); Empower (2); Consumer Financial Protection Bureau (CFPB) (3); New York Times (4); Psychology Today (5)
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Will Kenton is a personal finance writer with a Master's degree in Economics who has been published in Investopedia, AP News, TIME Stamped and Business Insider among other publications.
