The impact of behavioral economics on the management of consumer spending in crisis conditions

Abstract

Modern economic crises are accompanied by increased uncertainty, declining purchasing power, and the transformation of consumer practices. Under such conditions, traditional economic approaches based on the assumption of individual rationality prove insufficient for explaining and predicting population behavior. It highlights the relevance of behavioral economics, which examines the impact of cognitive biases, emotions, and social factors on financial decision-making. The primary purpose of the article is to study the role of behavioral factors in shaping household expenditure management strategies during crises and to identify tools that enhance consumer financial resilience. The researchemploys a systematic approach and methods of scientific literature analysis, generalization of empirical findings, as well as elements of comparative analysis to contrast classical and behavioral models of economic behavior. The application of inductive-deductive reasoning has made it possible to outline the key factors influencing expenditure strategies in times of economic turbulence. Results. The study demonstrates that in crises, consumers tend to strengthen saving behavior, reorient toward basic goods, and reduce spending on secondary needs. Cognitive biases such as loss aversion, anchoring, and social comparison play a significant role, shaping tendencies toward panic buying while simultaneously increasing demand for trusted brands. It is substantiated that the use of mental budgeting, expenditure framing, and automation of financial decisions can contribute to more rational household resource allocation. The findings show that considering behavioral aspects is critical both for individual expenditure management and for the development of effective public policy under conditions of economic instability. Conclusions. Behavioral economics provides valuable insights into how the structure of consumer spending changes under crisis conditions and what psychological factors determine financial behavior. Rational expenditure management becomes possible only when both economic and behavioral aspects are taken into account, which opens new opportunities for households as well as for state policy in the field of financial stability.