Compulsive buying affects the well‐being of millions of consumers globally by resulting in depression, unmanageable debt, and lower satisfaction with life. This research examines the mechanisms that link aversive family events experienced in childhood to compulsive buying tendencies in early adulthood. The article develops a set of hypotheses derived from the main theoretical perspectives of the multi‐theoretical life course paradigm, and it uses a sample of 492 young adults to test them. The results suggest that social processes are the underlying mechanisms that promote the development of compulsive buying tendencies. Family disruptions reduce intangible family resources that then shape the nature of interactions with peers and parents. Peer communications in formative years are directly linked to both obsessive–compulsive and impulse‐control dimensions of compulsive buying in early adulthood. The study findings help interpret and integrate previous research streams on compulsive buying from different fields of social sciences. Implications of the findings are offered along with directions for further research. Copyright © 2016 John Wiley & Sons, Ltd.