Money Management Newsletter

Shopping Sins Series:

 #1 Unnecessary Spending

Dr. Jo Turner, Professor, Family and Consumer Economics

Have you ever purchased something, only to find yourself asking a day or week later why you bought it?  You may even find that you have no use for it, no desire for it, or no place to put it.

Probably all of us have found ourselves in that predicament at one time or another.  There are times when you may not even be aware that you are spending for the unnecessary.

There are ways to avoid such spending.  Keep in mind the three "Whats" and a "Why" when buying. You can reduce or eliminate spending for the unnecessary.

What do you need? Are you buying features that you don't need and probably won't use?  How many of the extra added attractions are you getting?  The trick is to study your needs carefully and buy only for those needs. Whether you are considering a house, a range, a new car, a boat, a computer, digital camera, a lawn mower, or a suit, remember that each added attraction increases the initial cost and probably the upkeep or repair.  Is it worth it?

What level of quality do you need?  Most of us would not dream of spending as much money for a Halloween costume as for a new winter coat.  The same can hold true for many of our buying decisions.  For example, compare curtains for a camper and draperies for your house, or a new suit and a formal for the high school prom.  Questions that need to be answered in making a quality decision include: How will it be used?  How long do you want it to last?  What do you expect out of the product?

What must be given up for this?  Anytime money is spent, something is given up.  What is necessary for you may not be necessary for another.  Of course, there are no clear-cut right and wrong answers to necessary spending.  You must analyze your own wants and needs, and then determine what is necessary for you.  How does spending affect other family members?  Your purchases reflect your values.  Consider a simple example of two families.  Family A uses all the clothing money in the family budget for just that, clothes.  Ms. A delights in having her family well dressed in the latest fashion.  Family B spends less on clothes because being fashionable is not a high priority for the family.  Ms. B enjoys poking around antique shops, secondhand stores and garage sales for items to restore.  Time, money, energy spent and satisfaction received by family A and B may be the same.  They simply express satisfaction in different ways.

Why are you buying in the first place?  We are constantly tempted to spend. Have you ever thought through some of the reasons you buy?  People spend money usually for physical necessities but occasionally for what we might call psychological necessities.  Do you buy to feel better?  To give yourself a reward?  To express your independence?  To compensate for hurts?  To seek revenge?  Or give yourself a feeling of power?  Know yourself and why you are buying.  Being aware of your values, consciously setting goals, making plans, and carrying out those plans make it easier to accept the consequences of your actions.  Understand what you are doing and why. Taking responsibility for your decisions means not having everything and not complaining about what you don't have.