Money Management Newsletter

One prevalent shopping sin is being a spending snob.

The spending snob is a person who spends money without thought, who ignores information and events designed to help "save money," or whose need to impress others outweighs the need to shop wisely and stretch the uses of his/her money.

None of us wants to admit that we might be a "Spending Snob." But, unfortunately, each of us is in some way. Let's look at some ways we can become aware of and stamp out this habit.

Take some time to think about why you are buying. You might even talk yourself out of a purchase on the way to the shopping center or store.

Your values determine what you choose to buy. Do you know why you are making the choices you are making? The decisions you make are also affected by the amount and kind of resources available -- time, energy, money, skills, talents, attitudes, practices, etc.

When you investigate the why of your purchase, it may be much easier to make some changes in your spending habits and thereby gain greater satisfaction from the way you spend your money. Recognize the difference between your needs and wants.

Do you study ads carefully? Knowing how to read ads is a skill few of us have. Basically, ads are designed to get your attention and to make you want a specific product or service. They can be overwhelming.

What can a consumer do? For one thing, he can attempt to analyze the ad -- what factual information is it presenting or to what emotion or need is it appealing? Why is the ad saying you should buy its product or service?

Take advantage of opportunities to slash your spending by shopping sales. Do you know when sales are apt to occur? Do you have some money set aside so you can take advantage of sales? Become familiar with the different types so that you can be armed and ready the day the sale opens. If possible, shop the first day of the sale for the best selections and the last day for possible further price reductions.

There is a pattern for sales. Develop a calendar for sales in your area and plan to do the major part of your buying then.

Seasonal Sales. Post season for clothing, sporting goods, home furnishings, and other items. Some authorities believe that most families can save 15 to 30 percent of their annual purchases by taking advantage of season discounts. Buying food in season can cut the food bill by as much as six percent.

Clearance Sales. There are three major periods for storewide clearance sales: after Christmas, after Easter, and after the fourth of July. During these sales prices are reduced as much as 25 to 50 percent.

Stimulation Sales. Are intended to stimulate selling during slack periods. Often called "Christmas sales," "two-for-the-price-of-one sales," "dollar days" or "anniversary sales."

Annual Sales. Offers goods from regular stock at reduced prices for a short time. The reductions average 10 to 25 percent.

Private Sales. Several days before a public announcement of a sale, a store may give regular customers and those with charge accounts the word in advance. The store may even have special "open hours" for these customers. Avoid being a spending snob by developing good buying habits. Read and analyze ads. Time your buying to take advantage of low prices.