- Savings is when consumers are encouraged to spend in order to save
- “Buy one, get one free” is a classic technique used by retailers to induce spending
- Saving money means buying extra food, which can go bad.
Experts say cash-strapped Americans are falling victim to clever marketing tactics that make them spend more than they planned.
The “save money” phenomenon occurs when consumers believe they can save money by spending more money due to deals such as “buy one get one free.”
Other examples include “limited-time sales” or promises of deep discounts or free shipping if spending thresholds are met.
“Saving money means justifying your desire to buy more,” says Brad Klontz, a psychologist and certified financial planner based in Boulder, Colorado. told CNBC.
“A team of scientists has discovered a way to get more money out of you,” he added.
“Frugality is about justifying your desire to buy more,” said Brad Klontz, a psychologist and certified financial planner based in Boulder, Colorado.
“Buy one, get one free” display at Winn-Dixie grocery store in Orlando, Florida
Saving money can lead to Americans buying too much food that ends up spoiling, or buying too much clothing they don’t wear because they don’t need it.
Sales offered by many retailers can’t be claimed without spending money, which can sometimes lead to bigger problems as shoppers take on credit card debt to finance them.
“We’re constantly spending more than we can afford, and as a result, we end up experiencing financial health stress,” Klontz says.
Other marketing techniques that can cause savings can be as simple as listing items for sale.
Even a half-priced item can only be a wise purchase if you need it in the first place.
Consumer savings expert Andrea Wolloch offered CNBC a number of tips on how to avoid becoming a victim.
Ultimately, she said, consumers need to exercise restraint and consideration.
“Delete shopping apps on your phone that tell you about the latest sales and unsubscribe from store newsletters,” she said.
“Instead, look for coupons only when you need them.”
Wollock added that paying with cash makes it easier to avoid credit card debt and minimize impulse purchases.
“If you try to give them an actual bill, they’re less likely to part with their hard-earned money on something they didn’t plan on buying or don’t really need,” says Wolloch.
Sales like “buy one, get one 50% off” are designed to get consumers to spend money they otherwise wouldn’t.
Age-old techniques for cutting expenses also apply. He said consumers can put hurdles between themselves and future purchases.
You may also need time to reflect and think through your purchasing decisions.
“Take 24 hours to think carefully before you hit the buy button,” she said.
