Rosalind Evans
The term ‘spaving,’ a blend of spending and saving, highlights a peculiar financial behavior where Americans often spend more under the guise of saving more. This trend is notably pervasive across various consumer segments, driven by enticing offers such as “limited-time deals” and “buy one, get one free” promotions. As consumer savings expert Andrea Woroch warns, while these offers might seem beneficial, they often lead to a cycle of excessive purchasing and escalating credit card debt. This article delves into the mechanics of spaving, implications, and practical strategies to avoid falling into this financial trap.
Understanding Spaving
“Spaving is us justifying our desire to buy more,” explains Brad Klontz, a psychologist and certified financial planner based in Boulder, Colorado. The concept is akin to ‘girl math,’ where consumers justify expensive purchases by calculating the cost per use. However, spaving extends beyond high-ticket items, encompassing various rationalizations for increased spending. Klontz, a managing principal of YMW Advisors and a CNBC Financial Advisor Council member, emphasizes that these purchasing behaviors are not accidental. “Teams of scientists have figured out how to extract more money from you,” he remarks, highlighting the sophisticated marketing strategies designed to maximize consumer spending. Unfortunately, this often results in financial strain and stress related to one’s economic health.
Strategies to Combat Spaving
To combat the lure of spaving, Woroch offers several actionable steps that prioritize mindful spending over impulsive purchases:
1. Quiet the Noise: Begin by identifying and eliminating triggers of impulsive buying. “Delete shopping apps on your phone that alert you to the latest sale and unsubscribe from store newsletters,” advises Woroch. Instead, she suggests using deal sites or browser plugins that offer coupons only when necessary.
2. Pay with Cash: Using cash for purchases, especially big-ticket items, can significantly curb impulse spending. This tactile payment method makes the cost more tangible, reducing the likelihood of unnecessary expenditures.
3. Do the Math: Always calculate the actual value of deals. For example, a $20 discount on a $100 purchase is financially equivalent to a $10 discount on a $50 purchase. This perspective can prevent consumers from being misled by seemingly more significant discounts.
4. Steer Clear of Temptation: Avoiding physical stores that frequently promote limited-time deals can reduce spontaneous purchases. Woroch recommends online shopping with options like curbside pickup to control spending.
5. Create Shopping Hurdles: Removing stored payment details from online stores adds a layer of inconvenience that can deter hurried decisions and encourage more thoughtful purchases.
6. Set Time Rules: If uncertain, Woroch suggests a 24-hour waiting period to reassess the necessity of a purchase, which often leads to abandoning the initial impulse.
While spaving presents itself as a financially savvy strategy, it often backfires, leading consumers into a trap of overspending and subsequent financial distress. By adopting the methods outlined by experts like Andrea Woroch, consumers can shield themselves from marketing gimmicks and maintain control over their financial health. In a world where consumer psychology is leveraged to boost sales, understanding and resisting spaving can lead to more sustainable spending habits and improved economic well-being.
