You have talked in length about what should be done. You are absolutely correct, of course. But what you have said is not very helpful in itself if he or she who she is not in control of her spending. Typically, it is a case of emotional problems. Overspending is like an addiction to some people.
Well-meaning advice like telling someone to budget or to get to understand their triggers typically falls on deaf ears. It is often only getting into serious trouble that will hammer some sense into these people's heads. A lot of people who overspend are going to have to lose everything and their creditworthiness first and be forced to struggle for years or even decades to get back on track. Overspending and alcoholism have a lot in common and I wouldn't be surprised if the neural pathways activated in both cases were the same.