Do Coupons Make You Overspend?

  • Post category:Budgeting

What would you do to shave a few dollars off your weekly grocery bill? To many people, spending an hour cutting coupons from the Sunday paper sounds like the perfect way to reduce spending. Unfortunately, coupons aren’t always the money-saving tools they seem to be. Sometimes, they actually encourage you to spend more than you would if you didn’t have them.

 How Coupons Can Hurt
Manufacturers don’t offer coupons because they want to be generous—they do it because they want to encourage new consumers to buy their products. That means their goal is not to help you save money, but to encourage you to spend on items you wouldn’t normally buy.

If a coupon encourages you to purchase a product that you don’t need because it’s cheaper than it otherwise would be, then it’s doing more harm than good to your budget.  Likewise, if you spend more than you normally would on products you aren’t likely to use, simply because you have a coupon, then these discounts could end up draining your checking account without providing any real value.

Making Coupons Count
For most people, grocery shopping is a pretty routine event. While you may alternate meals and ingredients from week to week, chances are good that you consistently buy certain brands and items each and every month. When you have a coupon for one of these regularly purchased items, using it will save you money. The difference here is that you were going to buy the item before you had the coupon, so its discount represents a true savings.

Another way coupons can help is if they reduce the cost of a more expensive brand than you’d normally buy. But remember, you’ve only got a limited number of coupons, so if you decide to permanently switch to the more expensive brand after trying it, your overall grocery spending will increase.

Seemingly small, unnecessary expenses, such as those incurred when you overspend with coupons, can reduce the amount you’re able to set aside for retirement. They can also impact the longevity of your retirement savings. Careful budgeting and well-planned spending, on the other hand, are two great ways to stay on your WealthPath. Money-saving coupons can also help, but only when you make certain that you aren’t allowing the coupon to dictate your purchasing decisions.

Adrianna Rocha

Client Relations Representative

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
adrianna@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

My clients’ accomplishments are also my own. 

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with FSC Securities Corporation.