In 2025, there's been a notable trend of Gen Z and millennials prioritizing splurging on food and experiences like travel and dining, however, while 40% of consumers plan to splurge, the younger generations are leaning towards food and experiential splurges, with Gen Z particularly favoring technology. Hosts Cristina and Addison dive into part 3 of the Mindful Money Series and talk about splurging vs. saving with guest Melissa Murphy Pavone.
Addison Asks Question 1: So let me start with a question that might be a little controversial. Is it ever helpful or healthy to financially splurge? Is there a time when it's actually responsible to do so?
Melissa: I mean, like I said, we have one life, right? We have one face. We have to allow ourselves to splurge a little, to live in the present and enjoy the journey.
A lot of people were raised with the mindset of saving for retirement above all else. But how often do we hear stories of people who pass away just before or after retirement, or who get sick right after they stop working? That makes you step back and realize it's not just about the destination. It's also about the journey.
I’m not saying you should be reckless, rack up credit card debt, or live beyond your means. Unfortunately, many people do that. But it’s about identifying what’s important to you. Your splurge might be skincare. Someone else’s might be dining out. Mine might be paying for a car service so I can work while commuting to the airport.
These things are personal. As long as you’re aware of what your splurges are, how much they cost, and you budget for them—separately from your mortgage or retirement funds—it’s okay. Set aside a “splurge bucket.” When it’s time, go out, enjoy it, and make the most of life. Because life is short, and we have to be mindful about enjoying the process along the way.
Cristina Asks Question 2: This is a great segway to our next question, which is, how can you really define the difference between intentional spending and splurging?
Melissa: In today's cashless society, it's very easy to make impulsive purchases. We were talking earlier about the morning scroll and how much access we have now.
Back in the day, if you think about our parents, they had to go to the store to buy something. They had to get in the car, think about the purchase, go to the bank to get cash, then go to the store, hand over that cash, and take the item home. That required effort.
I don’t know about you, but I haven’t gone to many stores lately. I can be in the middle of making lunch and plucking my eyebrows and quickly buy something on Amazon, and it’ll be at my door by tomorrow morning. While that’s convenient, it also leads to a lot of extra purchases.
We're not physically going to the store, we're not taking money out of our pockets and handing it to someone. It's really easy to get sucked into impulsive spending.
One rule of thumb I like is setting a dollar amount threshold. If there’s something you want that costs more than that threshold, it should trigger a conversation—especially in a relationship.
I talk about this with my couples a lot: What amount can you spend without consulting your significant other? When my husband and I first got together, our number was $100. Anything over that, we had to talk about it. It wasn’t about asking permission, but about checking in and keeping the lines of communication open.
Now, with inflation, it’s $250.
Addison Follows Up: Can't buy anything for like $100 anymore.
Melissa: But like, over that threshold, we're kind of just like, hey, I'm looking at a new laptop or hey, I want this pair of shoes or this dress. You know, like and it's more of just a respect thing to kind of say, like, hey, is this something you really want or need? And like, it gives yourself that pause to say, is this intentional? Is there another alternative? And it gives you that time to be like, okay, it's not just like that instant gratification dopamine hit that we all kind of are going after. So I think that pause time is good and like that threshold to see if it's something that's super necessary.
Cristina: I've done the things I learned this probably from TikTok or something, about putting it in the shopping cart and then just leaving it there and seeing like. And sometimes you'll get emails for coupons where it's.
Cristina Follows Up: Hey, something's in your shopping cart, here's 10% off. And then it's like, okay, now, now do I really need it? Like it kind of like sat there and like so that has helped me.
Melissa: So yeah, it creates that pause to see, like, is this something I really need want or have to have.
Addison Asks Question 3: So while really thinking through what you're spending your money on, what does financial mindfulness look like in a fast paced, convenience driven culture?
Melissa: Well, that's a loaded question, Addison. I think it comes down to really being mindful and truly knowing your numbers.
I like to get crystal clear with my clients. You should know your numbers:
A lot of people focus on the budget, and I hate the word budget. We call it the "B word." I think of it like a diet. If you tell me I have to go on a diet, all I think about is carbs.
So instead, I like to refer to it as cash flow—money coming in and money going out. And it’s not always consistent. Some months or seasons are more expensive than others.
We have to be mindful of that. For example, if summer camp is coming up, that’s going to affect your discretionary income. You might decide not to eat out as much to cover the cost—because summer camp is freaking expensive.
There are ebbs and flows, and you have to stay flexible. But you also have to know your numbers so you understand where the give and take needs to happen.
Being mindful means you don’t just go out and blow $500 every weekend on food. Instead, you might say, “Okay, we have $500 this month for spending. Do we want to use that for several nights of takeout—Chinese food, pizza—or would we rather go all out for one fancy date night?”
Having those conversations and thinking about the why behind your spending makes it more intentional.
So instead of just saying, “Hey, should we go out?” you might pause and say, “Well, we have leftovers, and we’re planning that nice dinner this weekend.” That kind of thinking helps you become more intentional with your money.
Cristina Asks Question 4: So now we're talking about intentional spending. Now let's talk about balancing the spending and the savings. I love your idea of we're allocating $500 for eating out, and then we kind of budget it that way. But what about saving? How do we strike a really comfortable balance between the two?
Melissa: I always say, pay yourself first. And a lot of people don’t do this.
Think about your electric bill, your cable bill, Netflix—whatever it is. And of course, your cell phone bill. We all have one of those. You pay that bill no matter what. Every single month, without fail. It doesn’t matter where you live or what your situation is. You pay that phone bill.
But not everyone is putting money aside for retirement or saving for their future. That’s why I make it mandatory. It’s non-negotiable. We have to put money aside.
Part of that means living on less than what we make. And honestly, in America, I don’t think that happens very often. People are over-leveraged and spend more than they earn. It’s easy to do, especially in a cashless society.
There’s Instagram, TikTok, great restaurants, amazing skincare products. Spending becomes effortless, and we lose track.
So you have to make yourself a priority. First, everyone should have an emergency fund of three to six months of living expenses. Keep it in a high-yield money market account at a bank you don’t use for everyday transactions. Somewhere you can’t quickly transfer it back to your checking account. Just park it there.
That’s your "oh no" fund. When the car breaks down, or the boiler needs to be replaced, or something unexpected happens, you’re covered.
Then you have to continue paying yourself. Whether it’s an IRA, a 401(k) through work, or just a regular savings account, you need to make saving a priority.
Once you build those financial habits, it becomes routine. And when you start to see your savings grow, it gets exciting. That becomes your dopamine hit. You look at it and think, "Wow, look at me."
Then it turns into, "I should give myself a raise." You feel empowered to save more.
When you reach the point where you're spending less than you make, prioritizing yourself, and saving first, that’s when the magic happens. That’s when your mindset shifts to long-term saving, investing, and living with intention.
Addison Asks Question 5: So, Melissa, in your professional opinion, what is one small step someone could take starting today to be more mindful about their spending?
Melissa: I think they need to be honest. I always like to do an exercise with my clients where I give them a cash flow sheet of what they think they spend in a month. So, give them the cash flow, all the categories, and ask, what do you think you spend in the month? Then just go through the month like normal.
At the end of the month, they give me their debit and credit card statements, and we go over what they thought they spent and what they actually spent. It’s eye-opening. You might be like, oh yeah, I spent $200 on Uber Eats or Uber or whatever it is. Starbucks, $100.
Then you see the actual numbers and you're like, there's no way. That’s identity theft, right?
Somebody must have stolen my credit card. There’s no way. But it adds up quick.
I mean, my latte is now like seven or eight dollars because of oat milk.
Cristina Follows Up: Went to Starbucks yesterday through the drive through. My normal drink was not available, which I was already upset about, and I ordered something else. It was $6.50. I'm like, what am I doing? $6.50 nuts.
Melissa: And so some of the times, and I've done this exercise where it was a nurse in a hospital that I don't know if it was Dunkin' Donuts or Starbucks that had like a cafe in the hospital. And when we did the exercise, it was an exorbitant amount of money that she was spending. And so what we did, as that little trick is said, let's we want to spend $100 at Dunkin' Donuts or Starbucks or your local coffee shop. And so she bought $100 gift card and for the month at the beginning of the month. And then she used it. And then she thought twice about like, do I really need that cake pop? Or should I really buy everybody coffee? You know, because it's easy to just like, lose weight or like, do I really need that extra coffee? I already had a coffee, or I can have coffee on the floor above. Do I really need, like, the specialty coffee? And so when it ran out, she wasn't allowed to, you know, refill until the month. So it kind of just gave her that pause to say, like, do I really want this? Or is this just kind of like a habitual thing that I do And made it a little bit more special. Right. Just kind of like we talk about that date night. Like if we just go out all the time, it kind of loses, like the the specialness, right? Like the ambiance of it, like the novelty of it. But if you save it for like those special occasions, then it has a little bit more clout and it's like, oh, this is like, this is exciting. And we become more intentional about it and we enjoy it more too, and appreciate it because we're not doing it as frequently.
Cristina Follows Up: Yeah. Oh, I love that tip. So funny story. My kids have their own debit cards. They're 12 and 14. And we were walking around somewhere and my son goes, oh, can I get that? And I was like, okay, are you gonna buy. No. And then his question was, well, are you going to get it for me or do I have. And I said, no, no, no, no, you have to buy it. And then he goes, oh, never mind. I said what are you saving for? And he's like, oh, I'm saving for the new switch. So I'm really trying to like, make sure that like, my money goes to that.
Melissa: That's a great teachable moment there. Right. And like your son took pause to say, like, do I really need this? I was reading recently to my son, he's younger, he's four, but there's a Pete the Cat book similar premise, right? He's saving up for something. And along the way it's like, oh, hey, do I want to go to the movies? Or, hey, should I buy hot chocolate? And it's like, no, I can make hot chocolate at home, or hey, I can watch a movie at home. And if I don't spend that money, then it's like one step closer to the goal. And if you think about it like that. But and I think that's where some people lose sight, like what is the goal? Is it like a great vacation? Is it a new kitchen? Is it, you know, just like a certain number of, you know, financial freedom and money in the bank. But once you start saying it out loud and having that accountability partner, then you can kind of create that game plan to get closer to it.
Cristina Asks Question 6: Yeah for sure. Melissa, this has been so great. Thank you so much for coming onto the podcast today. How can our listeners learn more about you and your services?
Melissa: Awesome. Yeah, you can find me on LinkedIn. Melissa Murphy Pavone. My company's name is Mindful Financial Partners. It's just MindfulFinancialPartners.com happy to talk to everybody. I give complimentary consultations just to see if it's a good fit, but love to talk to you guys and meet your listeners and see how I can help you guys become more mindful.
The hosts share a resource from Addition Financial’s blog, “How Addition Financial Can Support Your Debt-Free Journey.”