Sensory finance: How smell, sound, and haptics nudge spending

Our money choices might feel intentional, but our senses often influence them before we even think about it. A smell, a sound, or even a simple touch can push us to spend more without realising it. The scent of coffee or the sound of a payment chime are small things that tap into our psychology. In this blog, we will explore why this matter for your personal finance.

Table of contents

• Sensory shortcut in money decisions
• Smell and spending
• Sound and spending
• Haptics (touch/feel) and spending
• Why this matters for behavioural finance
• Practical takeaways

Sensory shortcut in money decisions

One of the strongest forces behind our spending habits comes from sensory triggers. They hit us instantly, shaping how we feel before we even start thinking.

• Smell: A nice fragrance in a shop can make people feel more at ease and willing to buy.
• Sound: Upbeat music might push quicker decisions, while slower tunes can keep shoppers browsing longer.
• Touch: Smooth or soft textures in packaging or displays can make products seem higher in quality.

Instead of carefully comparing price to need, people often react to the good feelings these cues create in the moment. Over time, those small reactions can grow into spending patterns.

Smell and spending

Of all the senses, smell has one of the strongest ties to memory and emotion. Businesses use it not just to set the mood but also to drive sales.

Banks and investment firms also use this. A light, pleasant scent in a lobby can create a sense of trust and comfort. When clients feel at ease, they’re more open to committing to a product, whether it is a loan, savings plan, or mutual fund.

Sound and spending

Sound plays a quiet but powerful role in shaping how people spend. A simple chime, alert, or tune can act like a signal, guiding comfort and behaviour during money decisions.

Take digital payments as an example. The quick UPI chime or the “transaction successful” message gives a sense of closure and reassurance. It smooths out the process, making spending feel effortless and often skipping the hesitation that comes with handing over cash.

They create feelings of trust, safety, or even excitement, which can make money seem less tangible. As a result, the focus shifts from the actual cost to the feeling of the moment.

Haptics (touch/feel) and spending

Touch adds a layer of confirmation that feels instant and satisfying. The quick tap of a card or the slight buzz of a phone after payment gives a small but rewarding sense of completion.

In stores, being able to pick up and handle items has a huge impact on buying choices. Psychologists call this the “endowment effect”. Once someone holds a product, they start valuing it more.

Why this matters for behavioural finance

Financial theory often assumes people make rational choices, but in reality, emotions, habits, and subtle cues in the environment can have a powerful impact in decision-making. Small sensory triggers—a sound, a scent, or even the smooth tap of a digital payment—can nudge people toward choices they might not otherwise make.

So, even if you have a financial plan with distinct allocations to savings, daily expenses, fun, investments, sensory triggers can blur those lines. A pleasant scent in a store or the smooth confirmation of a digital payment can make spending money on wants seem just as effortless as spending on needs.

These cues also chip away at self-control. Each little nudge, a sound, a smell, a touch, erases the pause that might lead to second thoughts. Over time, those quick, seamless moments add up, often showing up as bigger credit card bills or higher spending than planned. This often results in reducing savings and investments.

Practical takeaways

We can’t completely avoid sensory triggers, but we can build habits that lessen their pull and bring more balance to money decisions. Here are three simple steps that help protect self-control and lead to smarter spending:

• Add friction to payments: Turn off payment sounds, disable one-tap options, or set up spending alerts to slow the process down.
• Notice the nudges: Pay attention to whether music, scents, or the feel of a product are pushing you toward a purchase.
• Pause before buying: Even a short break gives room for clearer thinking. Waiting a few minutes before completing a payment can help stop impulse spending.

Conclusion

Sensory cues show that money decisions aren’t just about math; that they’re shaped by environment and emotion too. Smells, sounds, and touch can make spending feel easy, but they also raise the risk of bigger bills and weaker self-control. By slowing transactions, noticing these nudges, and pausing before acting, it’s possible to bring balance back between impulse and logic. Awareness itself is a powerful protection against overspending.

At Bajaj Finserv AMC, we recognise that emotions are the cornerstone of investor behaviour – not just for investors but for investment professionals too. That’s why, behavioural finance is at the heart of our investment philosophy, InQuBe, which combines the Information Edge, Quantitative Edge and Behavioural Edge. By understanding, tracking and monitoring market sentiments and our own investment biases, we seek to make mindful and strategic investment decisions. Get the Behavioural edge by investing with Bajaj Finserv AMC. Read more about InQuBe here.

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