Coupons are popular among people who are trying to be frugal and eliminate debt. And why not? Coupons help you save money… or at least that’s the assumption.

But the fact is, coupons cause most people to spend more money than they would otherwise.

For instance, Harvard recently conducted a study focused on online grocery shopping. They found that coupons and gift cards are interpreted as unexpected “windfalls” by the people who receive them.

The two key findings in this particular study show that people who redeem a $10 coupon for online groceries will spend more than they would have otherwise. What’s more, the additional spending will be focused on products the person would not normally buy.

Another study found that coupon clippers will spend an extra $8 on impulse and luxury items for every $1 coupon they use. Why is this? The theory is that people like to reward themselves for being thrifty. They reward themselves by purchasing luxury items they would not normally purchase.

This, in a nutshell, is why coupons can cost you money.

Does that mean you shouldn’t clip coupons? No, I don’t think so. What it means is that you ought to use coupons only for items you intend to buy anyway. Don’t buy additional items to reward yourself… and don’t use coupons on items you don’t normally purchase. Use them to save money on what you’re already buying. This is how coupons can save you money.

In a future post, I will discuss the risks of newspapers and retail clubs. Stay tuned.

Popularity: 2% [?]

Want more quality articles about debt reduction and living debt-free? Then make sure you join my email list or subscribe to my RSS feed!

Topics: Tips & Advice |

Comments

Name (required)

Mail (will not be published) (required)

Website

Notify me of followup comments via e-mail

« Have a BlogSpot Blog? Read This… | Home | Getting Something for Nothing »