This week, we’ve been yarning about ‘little treat culture,’ a trend that has exploded across social media and news websites. If you’re not familiar with LTC, it’s all about enjoying small, everyday affordable indulgences as a substitute for bigger, more luxurious purchases amid the current cost of living crunch.

Last week’s Federal Budget aimed to relieve pressures felt across the nation with a $7.8 billion package targeting the cost-of-living crisis. The package featured tax cuts, electricity bill rebates and HECS freezes, to name a few. However, whether this is enough to inject money back into people’s pockets is still yet to be seen. For now, many Gen Z and millennials are still favouring an $8.00 latte over bigger goals that feel all too far away, and it’s no surprise.

A research report titled A Wonderful Life: Experiential Consumption and the Pursuit of Happiness, published by The Journal of Consumer Psychology, outlined that people get more satisfaction from experiential purchases compared to material purchases. The report found that experiential purchases provide greater happiness for several reasons. Firstly, they enhance social connections faster and more effectively than material goods; they form a bigger part of a person’s identity; and they are evaluated more on an individual’s terms, prompting fewer social comparisons than material purchases.

In a recent article published by the University of Portsmouth, senior marketing lecturer at Portsmouth Business School in the Faculty of Business and Law, Dr Kokho Jason Sit, explained that “little treat culture” has ramped up post-COVID and during the recent high inflationary period. However, he said, this isn’t a new theory. People have long been purchasing low-cost luxuries to boost their moods in difficult times. An important point made by Dr Sit is that the action is less about the product purchased and more about the emotional experience.

Dr Sit noted that treat culture could easily be seen as a negative indulgence, as small spending habits can lead to big costs and heighten financial risks like debt. He also flagged that treat culture has raised concerns about corporations preying on young consumers.

While we must be aware of the downside, Dr Sit explained that there is a clear and proven upside: treat culture has psychological benefits that offer a bright light in dark times. The positive connection of LTC has also been backed by a number of studies. Psychology Today flagged Woolley and Fishbach (2018) as one such study that compared immediate versus delayed rewards. It found that immediate rewards actually increased motivation. So, while it’s clear hedonism (the pursuit of pleasure and self-indulgence) is in, it doesn’t mean goal setting and long-term planning are out. In fact, both can coexist.

As we navigate an uneven economic path, it’s important to treat responsibly and track our indulgences. Ask yourself: How often do you treat yourself (daily, weekly, or monthly)? What is your idea of a little treat (coffee, sweets, face masks, candles, takeout, accessories)? What is your weekly spend on these treats ($10, $50, $100)? And when do you reach for your little treat (bad day, feeling down, excited, social reasons, self-motivation)? Because showing yourself a little love with the purchase of a small treat can be done while tackling our bigger goals.

An article published by She Knows highlighted an important point made by psychologist Ray Christner: LTC is all about balance and treats shouldn’t always be material. In light of this, consider making today’s little treat something more meaningful—spend time outdoors, have a heartfelt conversation with a loved one, put on your pyjamas early, brew a cup of tea, catch up on your favourite shows, read a book, or simply take a day to be a human being instead of a human doing.

Treats come in all shapes and sizes and can be as simple as a squeeze of lemon in your water. Essentially, it’s about creating a ritual that celebrates your hard work and rewards your efforts. Just remember, as you indulge in these small pleasures, take your larger aspirations with you.