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...

Guess what's in style again? That's right -- shopping. CNN Money reports that retail sales rose 1.3% in April compared to the prior month -- the largest monthly gain in over a year and a promising sign that the U.S. economy is improving after a disappointing first quarter. But people aren't opening their wallets and swiping their credit cards for everything. Right now, beauty products, sporting goods, cars, and eating out at restaurants is the rage. Clothes and electronics, on the other hand, aren't as popular this spring. Investors fear that buyers just aren't excited about new clothing and accessories. Consumers also have a clear preference for shopping online, as evidenced by Amazon, whose stock hit a record high this week above $700 a share. Traditional big box stores like Macy's, whose stock tumbled 18% this week, are in dire straits. Some economists say that people shouldn't read into the bump in sales too much. They say the gains in April sa...

As someone who's been a victim of identity theft multiple times, I know firsthand how important it is to keep your personal information safe, and how frustrating it can be once it's compromised. Here's a valuable tip: If you can't use cash, use credit cards. You should aim to use debit cards only in the event that you need to withdraw money from the ATM. Credit cards offer two key advantages over debit cards: 1. They're safer: Most credit cards these days offer consumers zero liability protection. This means that they're not responsible for any transactions made without their authorization. All fraudulent purchases are removed, thus bringing the cardholder's balance to where it should be. With debit cards, the process isn't as hassle-free. The bank will dig deeper to ensure you didn't make the transactions and will usually require you to fill out and send over paperwork. What's worse, you have to wait for the bank to give you your money b...

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...