'Spaving': The costly trap of spending more to save more

Whether it's buy one, get one free, free shipping with purchase, or buying several items to get half off, "spaving" – spending more to save more – is great for advertisers, but can wreak havoc on personal budgets.

“Spending money to save money isn’t really saving,” said Melanie Jewkes, a professor with Utah State University Extension who specializes in personal finance education.Utah's 'hidden' home ownership costs increase 44% in 4 years“There are very clever marketing tactics that make us feel like we’re saving,” Jewkes said. “Even when I go to the grocery store, it's like 'oh you spent $300 but saved $400.' It makes me feel like a million bucks.

“It’s estimated that the average shopper spends $151 a month on impulse purchases,” Jewkes said. “This comes at a time when many Americans are putting more and more on credit cards.” Before succumbing to spaving and making an impulse buy, Jewkes suggested asking yourself some critical questions.Jewkes also emphasized the importance of knowing your financial boundaries.

"When was the last time you crunched the numbers to see how much money you have? What bills need to be paid? What can you allow yourself to spend?” she asked.She said, “It gives you the ability to say, ‘Hey, this is my money, I can spend it on whatever I want.’”

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