- Spaving is when consumers are encouraged to spend to save.
- “Buy one, get one free” is a classic method used by retailers to induce spending.
- Spaving can lead to purchasing additional food that later spoils, e.g.
Cash-strapped Americans are falling victim to clever marketing tactics that lead them to spend more than planned, experts say.
Spaving occurs when offers like “buy one, get one free” make consumers think they can save by spending more money.
Other examples could be “limited time offers” or promises of greater savings or free shipping for meeting spending thresholds.
“Saving is justifying our desire to buy more,” said Brad Klontz, a psychologist and certified financial planner based in Boulder, Colorado. he told CNBC.
“Teams of scientists have figured out how to get more money out of it,” he added.
Brad Klontz, a psychologist and certified financial planner based in Boulder, Colorado, said that “saving is justifying our desire to buy more.”
“Buy one get one free” display at a Winn-Dixie grocery store in Orlando, Florida
Saving can lead Americans to buy too much food that later spoils or an extra item of clothing they don’t need and therefore never wear.
The deals offered by many retailers can only be achieved by spending money, and that can sometimes lead to bigger problems when shoppers take on credit card debt to finance themselves.
“We simply constantly spend more than we can afford and then experience stress related to our financial health,” Klontz said.
Other marketing tricks that can lead to savings are as simple as putting items on sale.
Even if an item is half price, it may only be a smart purchase if the item is necessary to begin with.
Consumer savings expert Andrea Woroch offered CNBC a variety of tips on how to avoid falling victim.
Ultimately, he said, consumers must exercise restraint and consideration.
“Delete shopping apps on your phone that alert you to the latest deals and unsubscribe from store newsletters,” he said.
“Instead, look for coupons only when you need them.”
Woroch added that by paying cash it can be easier to avoid incurring credit card debt and minimize impulsive spending.
“You’re less likely to shell out your hard-earned money on something you didn’t plan to buy or don’t really need when you’re shelling out real bills,” Woroch said.
Offers like “buy one, get one 50 percent off” are designed to entice consumers to spend money they otherwise wouldn’t.
Old tricks are also applied to reduce spending. He said consumers can create obstacles between themselves and their potential purchases.
They can also take time to reflect and contemplate purchasing decisions.
“Take 24 hours to think about a purchase before you hit the buy button,” he said.