5 Sneaky Ways Stores Make You Spend More, According to Money Expert Rachel Cruze
Even if you consider yourself a disciplined shopper, you might still occasionally end up spending more than you planned or budgeted for. This can especially happen when stores use marketing tricks that boost their sales but hurt your finances.
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In a recent YouTube video, money expert Rachel Cruze discussed five of these sneaky techniques that you should recognize so you can practice better spending habits.
Offering Rewards Programs
When you’re browsing a store’s website or checking out with a cashier, you might be invited to sign up for a loyalty program to save some cash.
“Whether it’s a $20 birthday coupon or get 10% off when you spend more than $150, their goal is to get you to spend more,” Cruze said. While you can use your perks, make sure you’re buying only what you need.
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Using Merchandising Techniques
You might be surprised at how your favorite store’s layout could affect your behavior and hurt your finances. Examples include placing tempting items near the checkout, putting popular items near the back of the store and making it harder to find cheaper versions of a product.
Cruze discussed how such sneaky practices could cause you to buy extra things or choose costlier options, so it’s important to think through your purchase decisions more carefully.
Letting You Try Out Items
Especially when you’re shopping for clothing, accessories and beauty products, retailers might entice you with the option to try the item out for free or for a small deposit.
While this can seem like a great option to make sure you want that product, Cruze compared such offers to debt and recommended buying things outright instead. Otherwise, you may feel tempted to spend wastefully or you may get charged if you forget to return unwanted items during the trial period.
Having Frequent Sales
If it seems like a specific store has a sale every time you visit, you’ve experienced another sneaky tactic intended to make you overspend.
Cruze gave examples of Hobby Lobby and Anthropologie, which often advertise many sale items and could confuse you about the right time to buy. She suggested noting your must-have items and being patient until they’re part of the sale.
Making Paying For Purchases Easier
Cruze described how online stores are “reducing the friction” by advertising buy now, pay later plans, like those from Afterpay and Klarna, at checkout. The purpose is to keep you from abandoning your cart due to concerns about affording the purchase.
While convenient installments might look appealing, Cruze cautioned against the traps of debt, including potential interest and fees. “The reality is that this is stealing hundreds of dollars from people’s budgets because for a lot of these companies, if you don’t pay on time, there’s fees, there’s interest, all of it,” Cruze said. Instead, it’s wiser to buy only what you can pay for at that time.
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