Though some people may be struggling to pay pills amid a recession sparked by a global pandemic, it doesn't mean those in a stronger financial position (or not) won't be running up their credit cards and breaking their piggy banks -- whether online or at the mall. And, ironically, it's all in the name of scoring holiday deals.  Here's what many shoppers fail to realize: Sales are just ploys to get us to buy stuff we may not necessarily want or need.  We go into a store intending to buy or two things and end up coming out with well over five.  We set a maximum holiday budget, but end up blowing right through it as we aim to take advantage of as many "bargains" as we possibly can. Now, that's not to say we shouldn't seize a good deal for stuff that we use regularly. But if you know it's an item you'll stuff in a drawer or closet -- one you might not even remember you have in six months' time -- you should pass on it. Here are four valuable ho...

A few days ago, I came across a picture on Facebook that had the following caption: "We buy stuff we don't need -- with money we don't have -- to impress people we don't like." Perhaps you can name a few people in your life -- whether at work or at the gym -- who do precisely that. Maybe that person has been you from time to time. The sad reality is that people often become so hung up on the things they perceive as missing in their lives that they lose sight of everything they already have. In many cases, this results from direct comparisons to people in their circle, thus igniting the urge to "Keep up with the Joneses." As I've said before, there's nothing wrong with indulging yourself every so often. Eat at that fancy restaurant you've been wanting to try. Buy yourself that expensive pair of shoes you say online. You work hard for your money; if you have the means, why not? I take issue, however, with people who have to have the...

Yesterday, my wife and I visited a local science museum that is featuring an exhibit on the brain that I very much wanted to check out. While the exhibit was phenomenal, I came away with a bitter taste in my mouth after visiting the museum's gift shop. When we finally made it to the front of the line to pay for our items, the cashier informed us that they'd run out of plastic bags, but that we had the option to purchase one of their tote bags for $3. Interestingly enough, this happened to be the third time in as many months where a merchant I'm buying from has tried to coax me into purchasing one of their tote bags. As someone who earned degrees in psychology and marketing, I can tell you that this is likely a clever sales ploy retailers are trying to pull just to earn more money. Think about it: If on a given day, say, 300 people opt to buy a $3 bag, that's $900 bucks the store would not have if they used regular plastic bags! And most people -- especiall...

Is having too many choices good or bad? Some might say it's a good thing, as it allows you to pick what best suits your needs. Others contend it can be a bad thing in that it causes you to second guess your decisions, especially if the alternatives are fairly comparable. We face this type of conundrum on an almost-daily basis. Which job offer should I accept? Which computer should I buy? Which of these two guys should I become exclusive with? About a month or two before graduating from college, I was hitting the pavement hard in hopes of landing a full-time job. (Mind you, this wasn't long before the global recession began.) I went on a flurry of interviews and was offered nearly every position I applied for. I turned down the first two because I thought the salary being offered was a tad low. Besides, I didn't want to run after the first opportunity that came my way; I wished to take a little more time testing the job market waters. Unfortunately, the positio...

Many of us complain of being strapped for cash, forcing us to put off vacations and even milestone events like graduation, marriage and having kids. But we don't realize that our poor spending habits are likely to blame. Whether you're living on credit or spending significant sums on stuff you may not even use, such practices add up over time, resulting in in a mountain of debt, depleted savings, and other unfavorable consequences that can wreak havoc on your life. Look in your closet or drawers. Do you have various items that still have price tags on them? That probably means that you bought them to jump on a sale, not because you really wanted them in the first place. I caution people against buying things simply because they'll get something free or a second item half off, for example. It induces us to buy things we otherwise wouldn't buy if they weren't on sale. So, what happens? These things are left collecting dust at home while your bank account...

According to a new study in the Journal of Consumer Research , even subtle reminders of idealized bodies can encourage overweight consumers to overspend. Studies show that exposure to body cues (i.e., shapes) can have unintended consequences on seemingly unrelated behavior, such as spending. Seeing a thin -- as opposed to wide -- human-like shape prompts high-body-mass-index consumers to make more indulgent spending decisions. The authors found that mere reminders of the thin-body ideal can cause overweight consumers to feel worse about their own abilities, including management of their spending impulses. In one study where consumers were shown an object with a thin, human-like shape (e.g., something that resembles a Coca-Coca bottle), high-BMI consumers were more likely to buy a higher-priced, Fiji-brand bottle of water than a lower-priced, generic-brand bottle. Another study on shopping found that high-BMI consumers were more willing to take on credit card debt after seeing a...

I made an appointment yesterday to get a haircut at my local barbershop. One of the reasons I switched from my old barbershop to this one was because I grew tired of having to wait 30 or more minutes for my turn despite my making an apppointment. Since making the switch about 8 months ago, I never had to wait more than 5 minutes to be attended. That all changed last night. Whether it was the fact that Valentine's Day is a couple of days away, or it just so happens that many people showed up at the same time on the same night, I had to wait close to an hour to be tended to. (Another woman made an appointment to get her hair dyed at 6:30, the same time I scheduled my appointment for.) I'm willing to look past this annoying incident given that, up until now, the place has never disappointed me. However, if this begins to happen more frequently, I won't be a happy camper. I spend so much time stuck in traffic each day (an hour to work and another hour going hom...

As someone who studied and works in marketing and consumer psychology, I know full well how tempting it can be for consumers to spend money they don't have. You walk into a store and see shoes to die for that would look great with the spaghetti strap dress you bought moments ago. Or, you see a shirt you know your brother would dig, a pair of earrings that your mom will go gaga over, and a tool set that has your uncle's name all over it. Whether you're buying gifts for yourself or for friends/family, it makes sense to scour the internet and newspaper for the best deals you can find. Still, if you see that if your shopping list could easily translate into hundreds (if not thousands) of dollars in credit card debt, you'd be wise to pare it down a bit. You can start by only buying one gift per adult. Better yet, why not get one gift per couple? Things like towel sets and silverware sets are items for the home that anyone can use. You may be tempted to buy the li...

Ever notice that after a while, you get tired of the same things -- whether foods, TV shows, work responsibilities, or -- dare I say it -- people? Several people have asked me why this happens, so I thought it apropos to create a post that addresses this phenomenon. The more we're exposed to a given stimulus, the less satisfaction we derive from it over time. In psychology and economics, this is known as the law of diminishing marginal utility.  Here's the definition provided by BusinessDictionary.com: "The law of diminishing marginal utility is a psychological generalization that the perceived value of, or satisfaction gained from, a good to a consumer declines with each additional unit consumed or acquired." In other words, you can only eat so many Big Macs or watch the same movie so many times before you become completely sick -- which is termed disutility.  In advertising, wearout is defined as the declining effectiveness of a commercial or campaign ...

Want me to write about a topic of interest to you? Let me know in the comments section! I'd be happy to discuss this with you in private, if you so desire. Keep in mind that How to Understand People specializes in psychology-based content, with these being the areas most frequently touched upon: Relationship psychology  Consumer psychology Personality psychology  Social psychology  I can always make an exception if it's a topic near and dear to your heart.  Don't be shy; send me a message and let me know what's on your mind! I'd love to see what great ideas you can bring to the table! Cheers, Jeff  Blog Writer and Administrator 

I recently read an article stating that 62% of Americans have less than $1,000 in savings. What's worse, 21% of them don't even have a savings account! Supposedly, Americans have been saving more since the global recession, but the stat above doesn't seem to bear that out. One of the most discussed topics on this forum is consumer behavior, as my background is in psychology and marketing. It's imperative that Americans -- and people throughout the world, for that matter -- practice saving responsibly. The best way to save money is by living below one's means. Spending hundreds of dollars on clothing and food every week doesn't help your pocketbook in any way,  especially if you have the tendency to run up your credit card bills and pay late. I'm not saying you can't treat yourself to a good meal here and there, but spending -- just like eating amd drinking -- should be done in moderation. As I tell many of my cash-strapped friends, sometimes ...

I received my degree in marketing and minor in psychology, so I'm probably one of the few people out there who enjoy analyzing advertisements carefully for content, message, and other variables. It's become apparent that ads for a wide array of marketers ranging from Progressive and State Farm to Geico and Aflak are making their ads decidedly obnoxious these days. Take Progressive, for example. Never has Flo -- the character portrayed by actor and comedian Stephanie Courtney, who's appeared in more than 100 commercials for the company since 2008 -- made me crack even the slightest smile. The Aflak duck was amusing in the 90s, but not anymore -- now you almost feel like throwing a rock at your television set whenever it pops up. Companies are incorporating more animals, loud noises, and silly antics to grab the consumer's attention. What many of these marketers fail to realize is that the most successful ads in recent years -- those of Budweiser and car companies l...

The easiest (and quickest) ways to build wealth include winning the lottery, robbing a bank, or getting an inheritance. Since these methods are either unusual or flat-out illegal, we have to resort to more practical ways that involve a level of effort and judiciousness. Enter the practice of saving. Unfortunately, saving money seems alien to many people I know. No sooner do they get a paycheck than they squander it on expensive things they may not need, like $500 shoes or handbags. What's worse, some blow it in even more egregious ways (think booze, drugs, and casinos). I am a firm believer that every college student -- hell, maybe even high school students -- should be required to take a class on personal finance. Far too many of us go out into the real world not having a clue as to ways we can save money and why it's important to begin doing so at an early age. (The same goes for job hunting, which will be the subject of a future post.) Think about it: If you get in...

In the battle between paper and plastic, paper is the undisputed winner. Consumer psychologists have found that people are less likely to splurge when they only use cash. And this makes perfect sense. It's always easier to limit yourself to a predetermined amount when using dollar bills. Once you run out of them, you have no choice but to run to the ATM for more. In the case of credit cards, we can have a credit limit of, say, $8,000, a fact not lost on us when we're at the mall. Thus, we feel less predisposed to put the brakes on our purchases when we know we can just swipe the card countless times. Using cash also "stings" more because you actually feel like you're losing something. You can open your wallet or purse and see that your hard-earned cash is no longer there. With credit cards, you can postpone feeling the sting until you receive your bill in the mail, which is what the vast majority of consumers would rather do. Let's not forget that ca...