American lives have changed dramatically this year, as have their financial habits. Due to widespread economic instability, it has been reported that 64% of Americans said their spending decisions would change permanently after COVID-19. While there is growing national concern about saving, it is important for consumers to be on the lookout for common pitfalls such as "spaving" when shopping.
Spaving is a term used to describe when people are spending more money to maximize their savings. Some common scenarios include adding additional items to your cart to qualify for free shipping, or purchasing items in bulk, even if you are unlikely to be using all of them. Most advertisers are guilty of promoting spading, especially during the holiday season.
To find out who's admitting saving and how this tricky spending habit creeps into our budgets, we surveyed 3,000 Americans. We confirmed that while only 7 percent realized they had spent more overall in the last three months, the majority of people admitted the three biggest savings mistakes they made.
Some of our key findings are:
58 percent of Americans admit to spading –spend more money to save.
32 percent claim they have bought more online just to get free shipping.
Rough Every fifth American say they have overall more saved in the last 3 monthswhile only 7 percent say they have more money spent During this time.
Over Half of Americans Admit "Spaving"
The majority of Americans are guilty of at least one way of spending more in order to save money in the long run. Spaving is one of the worst financial pitfalls as it is deceptive and benefits from both convenience and fear.
When we are worried about bottlenecks or lockdowns, desperately buying in bulk can lead to bad financial decisions that don't add up. If you've fallen victim to panic buying or spades, you are not alone. Check out how many Americans have admitted spending more to save:
It turns out that saving is more about feeling like you're getting a deal than actually saving money. For example, now that we all shop online, it's easy to fall into the trap of spending more in order to qualify for free shipping. There may be certain circumstances when it makes financial sense to do so, but these cases are quite rare.
One in five Americans increased their savings this summer
It's no surprise that the pandemic has affected our attitudes towards money. In times of economic crisis, instability, and uncertainty, people are more concerned about how they are going to use their next paycheck.
50 percent of people state that their spending habits have changed. 21 percent of Americans said they saved more overall, while 22 percent said they saved more in some areas while spending more in others. Only 7 percent now said they had spent more money during this period.
Perhaps the biggest discovery these polls can reveal is that a savings-obsessed mentality doesn't always translate into less money being spent. It's easy to get blinded by advertisers if we focus on the idea of saving without following and checking the math.
For example, when was the last time you calculated the cost per item to see how much you were saving by making wholesale purchases at discount clubs? Be sure to consider factors such as the expiration date and possible waste. Spending less on small shopping trips to a local store may be more convenient on your budget.
In order to escape the savings of our consumer society, it may be more important to review promotions and adopt a more frugal mindset. Check out our visual guide below to see if your financial habits are actually helping you save money after the pandemic.
Even if you feel like you've mastered the work from home, changing your daily habits has undoubtedly affected your budget, for either for better or for worse. Without getting to and from work, you are likely to spend less on gasoline and eliminate unnecessary purchases you may have made while in transit.
Even if you enjoy these saving victories, you should keep an eye on your expenses. To keep your momentum and meet your financial goals, watch out for traps and other obstacles designed to slow you down. After all, there is always room for improvement in your budget.
Science Daily | USDA
This study consisted of two survey questions carried out using Google Surveys. The sample consisted of no fewer than 1,500 completed answers per question. Stratification weighting was used to ensure an accurate and reliable representation of the total population. This survey was conducted in August 2020.