12 September 2013
Reading time: 4 minutes
Posted by Tom Hartmann,
62 comments
Spending to save. In this language mash-up, we bring you ‘spaving’ – the questionable idea that you can save money by spending it. You’ll know it if you’ve ever felt the urge.
Spaving happens when the reason we’re spending is not because we need or even want something, but because we think we’re saving money. We tally the supposed savings in our heads instead of noticing how much we’re out of pocket in the process.
And if we’re talking about truly saving money, in the sense of accumulating wealth, spaving is a mathematical impossibility: you can’t really save if you’re spending, right?
Retailers love the idea of spaving, and for good reason – it helps them sell more. Although they might take a loss on some products, they know they’ll make it back by selling more volume. That’s why we often can get those low prices only by buying significantly more stuff.
Retailers already have their plan for your money – do you have yours?
The other thing that’s going on here is something called ‘anchoring’, which retailers use to fix in our minds what something usually costs. We all compare prices by anchoring to something and comparing the difference.
Once that anchor is in place, retailers can then use a teaser rate that’s much lower in order to make us feel like we’re saving huge amounts. And everyone loves a good deal.
“It’s not a bargain if you don’t need it,” a friend’s grandmother used to advise. Truer words were never spoken.
Remember, just because you’ve found a coupon or a deal on something, it doesn’t mean you really need or even want it. If you end up buying it anyway, that’s just spaving.
If it’s ‘buy two for the price of one' and you don’t really need two, that’s just spaving. Take T-shirts, for example, at one for $20 or two for $30. If you buy two, you’ll have saved $10, but you’ll really have spent $10 more than you needed or wanted to.
In contrast, here’s what a real bargain looks like. Not long ago, a colleague saw a stunning red, reversible blazer in a shop window, went in and tried it on, but decided that the $380 price tag didn’t fit her plan. Months later, she was thrilled to find the same blazer had been marked down to $58! (And since it’s reversible, that’s only $29 per jacket…)
A true find, and no spaving in sight.
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Comments (10)
Comments
Kyra | 24 May 22
I think spaving definitely has its pros and cons. Like buying something only because it's on sale, but you don't really need it. Its more like you're just buying it so when the sale is over you feel good, because you brought it for much less than the usual price.
But on the other hand, buying something that says buy one get one half price, if that second one will come in handy, then that's not spaving it's saving :)
Anonymous | 5 May 22
I think spaving has its pros and cons such as buying something only because it is on sale but you do not really need it .but also buying something that say is buy 1 get 1 half price if you will use that 2nd item then thats great
demarcus cousins the III | 18 March 22
spaving sounds confusing
Riley | 18 October 21
I don't think spaving is a good choice for managing your money. take the T-shirt example for instance it says that you are saving 10 dollars but if you only need one T-shirt the only way you save by buying two is if you sell one.
Fynn Sattler | 5 October 21
It sounds like a good idea but I don't think that is the best option because it would not help you if you bought something that you don't need.
Fynn Sattler | 5 October 21
It sounds like a good idea but it also sounds like a trap to make you spend money so I don't fully believe it's the best thing to do.
liam carter | 27 September 21
saving is not buying cheap ripped clothes or buying in sale times it means saving money when you don't need that item just buy when you need it!
Joshua | 30 August 21
Spaving is a hook to pull you in to their money spending trap
Anonymous | 17 August 21
It is good to know about spaving. Especially when you are shopping.
Zak | 15 August 21
Spaving is a good, but also bad if you consentley over spend
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