By Shirley Anderson-Porisch and Sara Croymans, University of Minnesota Extension
When you use a spending plan or budget, it can help you learn about your spending patterns with money. This insight can also help you manage your money.
In addition to spending patterns, overspending can occur with any purchase when people don't know how much money is coming in or going out of their household. You can prevent overspending-especially during the holidays-by increasing your understanding of personal spending patterns, and by completing and using a spending plan or budget that balances household income and expenses.
When you use a spending plan or budget, it can help you learn about your spending patterns with money. This insight can also help you manage your money.
In addition to spending patterns, overspending can occur with any purchase when people don't know how much money is coming in or going out of their household. You can prevent overspending-especially during the holidays-by increasing your understanding of personal spending patterns, and by completing and using a spending plan or budget that balances household income and expenses.
How can you turn the corner this holiday season? Be aware of certain spending patterns, like these, which may lead to overspending:
- Response to social pressure such as the desire to be approved by other people-often referred to as "keeping up with the Joneses." People are in this situation if their goal is to impress others.
- Response to sales pressure or acting because someone suggested the purchase was a good idea-usually in stores where sales people make strong suggestions to buy. These purchases usually don't meet personal needs.
- Response to an accepted habit or making a purchase because it's something always done-usually when people make purchases without a need for the product or service.
- Belief in advertisements, along with impulse buying or making a purchase with every sales option, may result from countless advertisements that influence people to spend money. Impulse buying usually prevents comparison shopping.
- The desire to change an emotional state or feel better results when people are depressed, angry, or sad, and believe that spending money will lessen or eliminate those feelings.
- The inability to say no to a purchase or a particular group of people-often observed when parents have a hard time saying no to purchases for children. Frequently, the purchase is influenced by parental guilt.
Shirley Anderson-Porisch and Sara Croymans are family resource management educators with University of Minnesota Extension.
