Money Management Newsletter

Shopping Sins Series:

#4 Dollar Dribbler

Dr. Jo Turner

Professor, Family and Consumer Economics

Few of us can afford everything we'd like to have or do. Most of us can, however, increase the satisfaction we get from money spent, regardless of the size of our family's income.

We can expand buying power, but some sacrifice of time, convenience and impulsiveness must come first. The sooner we accept this reality, the easier it will be to stop the dribbles.

To find out where your money dribbles, answer the following questions.

• Do you save coupons? Coupons are a good way to save money if used wisely. But if coupons are used to purchase things you don’t need and would not ordinarily buy, or a more expensive product they may not be saving you any money.
• Do you file "use and care" directions for appliances and use them as needed? If not, you may be spending money on repairs that could have been avoided.
• Do you file warranties and proofs of purchase such as sales receipts? If not, you may be unable to take advantage of the warranty and might have to pay for repairs that would otherwise be covered.
• Are you on the lookout for something for nothing? Forget it! There is no such way to stretch the budget. The Better Business Bureau defines "free" as offered without cost or obligation. If a "free gift" requires a purchase and you really want the product, compare the price and quality with similar merchandise offered by other sellers.

For example, the "free" toy in a box of cereal may not be free. Use unit pricing to find out if the cost of the gift is built into the cost of the product.

There may be a charge unrelated to the "free" merchandise. You receive notification that you have won a product such as a free wig -- all you must pay for is styling. Or you have won a set of luggage all you must pay for is shipping. The cost of the styling or shipping may be more that the product is worth. Check it out!

You may be asked to spend resources other than money. You could be offered a "free gift" if you will watch a demonstration or listen to a sales talk. Consider your time, your interest in the product and your ability to resist sales pressure. Determine what you must give in order to get the "free" prize. Often the prize is not given unless you purchase the product being demonstrated. What is the trade-off? Is it worth it? Don’t let the something for nothing pitch make you a dollar dribbler.

When shopping, do you read and understand labels on products? Can you determine use and care of the product from the information provided? Does the advertisement place certain limits on warranties such as giving up your rights to return faulty merchandise? Be sure you understand your rights. Ask questions until you get satisfactory answers.

Do you know where your money goes? If not, you may be unaware of your spending habits.

To discover your spending habits, write down all money spent for a month. You may be surprised. If you need help changing your spending habits, contact your local county Extension office.