Activities you think make you happy may actually be a source of pain. Researchers say casino splurges, not saving enough or buying the latest iPhone on impulse can lead to emotional turmoil or financial troubles.

Several studies on the agenda today at the 116th Annual Convention of the American Psychological Association in Boston demonstrate how various approaches to spending can lead to both contentment and problems. The studies cover the buying habits and emotional well-being of spenders, the demographics of gamblers and strategies people use to save.

Psychologist Miriam Tatzel of Empire State College, State University of New York, said what consumers buy and how they pay for it affects their sense of well-being. “Those who don’t worry too much about prices and like to spend their money on travel or dinners rather than new cars are generally happier than those who spend a lot on expensive purchases and carry credit card debt,” said Tatzel.

Who is the happiest According to her study of 329 students, consumers who pay little attention to either prices or what other people have. They buy what they want, without the pressure to compete with their peers or shop for bargains. They’re happier than non-spenders, who save every penny; value seekers, a group she defines as both materialistic and frugal because they look for sales on high price items; or big spenders, who are materialistic but not frugal and often use credit to finance their purchases.

In another study, psychologist Arch G. Woodside of Boston College and Ralph Perfetto of the University of Rhode Island found less than two percent of all casino gamblers are responsible for nearly 25 percent of all casino gambling wins and losses . They said this group of extreme gamblers includes “whales”– white, middle-aged men with high incomes who go to casinos most weeks of the year, “Jumbo shrimp”–older white females with very low incomes who visit casinos most weeks of the year and “big fish”–frequent gamblers from mixed demographic backgrounds with moderate incomes.

“Understanding the demographics and the different influences that play into gambling can help psychologists tailor their interventions for people who get into trouble,” Woodside said. “Moderate-income X-gamblers - ‘big fish’ - are at the most risk for losing the most money and suffering the most overwhelming financial and psychological consequences. The ‘whales’ can afford to lose money and the ‘jumbo shrimps’ don’t have much money to lose.”

In a third study about spending, researchers looked at the reasons people have trouble saving and what they can do to save more. Leona Tam of Old Dominion University and Utpal M. Dholakia of Rice University, found that consumers who plan and estimate their savings more than a month in the future are twice as likely to save less money compared to those who only plan a month at a time.

While keeping the savings goal in mind, planning to save in the short term leads to the most success, said Tam. “This type of time frame helps people see steady progress along the way while not feeling too much pressure. This is similar to some of the dieting regimens– not too close so you don’t see progress but not too far away either so you don’t get discouraged,” she explained.

A fourth study looked at negative emotions resulting from an impulse buy and how impulse buyers cope differently with each emotion. Sunghwan Yi, a professor at the University of Guelph in Ontario, said consumers commonly feel guilt or shame after making impulse purchases. Guilt instills remorse or regret over giving into a “particular transgression,” whereas shame brings on revelations of deep-seated personal flaws, Yi explained.

“Even though guilt and shame are often interchangeably used, each is a distinct emotion,” Yi said. “Participants who felt guilty about the impulse buying used proactive coping strategies, such as adjusting budgets and planning to reduce impulse buying in the future. On the other hand, shameful buyers used more avoidance emotion-focused strategies, such as denial and reframing the incident to be less injurious to the self.”

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