If you are with them when they are purchasing a perceivedly frivolous item, ask them if they really need that. That’ll generally make them think twice before getting it, and you can try to persuade otherwise as well.
Exactly, like jaksongitr mentioned one of the most effective methods is simply to convince people out of their unnecessary purchases. For the more difficult person, I would find activities to do that do not involve shopping. Even telling them that they save money by not buying those useless knick knacks. Perhaps even asking them to leave the wallet at home may help. Just so long as they know that you are simply trying to help them out.
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