Tag Archives: Brenda Long and Scott Matteson

Impulse at the check-out line: Holiday shopping and credit card offers

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Courtesy Michigan State University Extension

By Brenda Long and Scott Matteson, Michigan State University Extension


It is a well-known practice — impulse items placed at the checkout line. These items are strategically placed to catch your eye as you unload your shopping cart.


Gum, candy, assorted snacks and a growing assortment of miscellaneous items like pipe cleaners and nail clippers are placed at just the right level along with the array of magazines with “gotcha” headlines. Within the past few years a growing number of gift cards have shown up as well. Many of these items could be considered convenience items, last minute gifts, something to eat on the commute home.


More recently, you are even offered a chance to save money instantly. This is great! You are not adding to your total, you are actually saving money!


What’s the catch?


“Excuse me sir,” says the sales associate. “Would you like to save ten percent on your purchase today?” You think of your budget. Money is tight right now. “I sure would,” you reply. “Great!” replies the associate. “I just need to get some information from you. You will not only save ten percent today. You will save five percent on all additional purchases!” This is beginning to sound better and better. Sure, you have to sign up for a “box store” credit card, but you will really save on the big screen television in your cart. What could be the down side?


Did you know that every time a merchant signs you up for a credit card, they check your credit? Did you know that every time your credit is checked for such an application, it may have an effect on your credit score? According to statistics reported by the Federal Reserve, American consumers hold more than 880 billion dollars in revolving debt. Have you ever heard the saying, “the house always wins?”


The box store credit card offers to save you 10 percent on your purchase will save you money if you pay off the balance each month. What box stores want is for you to buy more box store stuff. If you are not disciplined enough, the credit card offers are not being made to save you money. If box store wanted you to save money with no strings attached, they could hand out ten percent-off coupons at the checkout. Store credit cards are meant for you to spend more money at the store and to charge interest if you do not pay the balance. Be prepared and look for ways to save money. Make a list of the items that you want to buy and sleep on it. Compare prices for the items on the list at a number of stores. Be efficient and plan your trips ahead of time. Resist the check-out line offers.


Credit is not the problem. Too much credit is the problem. Maybe you can resist the extra plastic in your wallet. Michigan State University Extension offers a variety of money management programs throughout the state of Michigan. For more information, check out this website .


This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).



Be wise this holiday shopping season

3-bottom, Citizen Journalism, Holidays, How-To's, , ,
Make a plan for your holiday shopping and you will help the economy without creating a money problem for yourself. (MSU Extension)

By Brenda Long and Scott Matteson, Michigan State University Extension 


Many of you have probably started your holiday shopping already, but it is still not too late to avoid money problems this holiday season. It seems that the shopping season begins earlier and earlier, and this year is no exception. However, you still have time to avoid the pitfall that so many fall into this time of year — overspending. As retail sales continue to rise, you can take steps now to avoid money problems later.


Go ahead and do your part to help our economy grow. Holiday sales can define a retailer’s bottom line for the entire year, and they hire many seasonal employees to handle the increased sales. However, do your part without the worry of becoming a negative economic statistic. First, sit down and think about some important questions. Who are all the people you would like to buy presents for this holiday season? Give yourself some time to write them down.


Second, are there any other significant events that are occurring prior to, during or shortly after the holidays. Many people still have birthdays around the holidays, for example. What about weddings or anniversaries? What about baby showers? Ask all the people in your household to join in on the brainstorming session. It could be a fun family activity to get you in the mood to shop.


Third, decide on an average amount that you would like to spend on each gift and then multiply the amount times the number of gifts you want to buy. For example, if you decide to spend an average of $40 per gift and you have ten holiday presents, one baby shower gift and two birthdays within the next two months, you will need $520 (13 X $40) to buy all of your planned gifts.


Fourth, you may need to make some adjustments. Do you have $520 on-hand? If not, how soon can you save that amount? Do you have room in your monthly spending plan to save for $520? Do you need to decrease the average spent on each gift? Do you even have a spending plan? If not, Michigan State University Extension offers a variety of money management programs throughout the state of Michigan. You can also find help with making a spending plan at mimoneyhealth.org.


Finally, once you have an amount that you can afford, set the money aside either in cash or in your bank account. You may use an envelope to save the cash at home or deposit your savings into a holiday or savings account at a financial institution. Keep track of each gift purchased and if you overspend on one, make adjustments where you can. If you stick to your plan, you will contribute to the economy and not have a pile of debt left over for the New Year. Next year, start earlier and you may be able to do more for the economy and save money in the process.


This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).